Mortgage Insurance Plans: How Good Is Yours?

Written by Ivon T. Hughes


Mortgage insurance, to pay off a mortgage, is something you'll inevitably be asked to take out byrepparttar bank. Mortgage insurance is necessary so that if something happens to you or your spouse then your loan will be paid off which is good news for your family andrepparttar 142203 bank. Banks act as if doing you a favour by offering mortgage insurance through their own group plan. Are they?

Mortgage Insurance Is Probably A Much Better Deal From Any Number Of Insurance Companies.

Mortgage insurance is no different than term life insurance; in fact it is term life insurance. With either, your policy lasts for a specified period of time and pays if something happens to you or your spouse if you are both insured. The real difference is how much control you'll have over your policy and how much you'll pay for it.

Mortgage insurance offered byrepparttar 142204 bank, does not allow you to customize a policy to fit your needs and you'll be lumped together with other borrowers under a group plan. So, you will have no control over your policy. For example, through a company of your choice, such as Canada Life or National Life, you would be able to choose your own beneficiary and decide how to spendrepparttar 142205 proceeds. These options are not available with a mortgage taken from a lending institution. Ifrepparttar 142206 insured party dies,repparttar 142207 mortgage loan is completely paid off, even if you need some money for other things.

Additionally,repparttar 142208 bank hasrepparttar 142209 right to not renew your policy and to cancelrepparttar 142210 policy when you sellrepparttar 142211 house. Do you want to give up this control as now you may have become uninsurable?

Are you paying too much for your mortgage insurance?

Written by Ivon T. Hughes


Most of us, struggling to make our mortgage payments, realizerepparttar importance of financially securing our home and our lifestyle by putting in place some life insurance. Your bank or lending institution does too! They will usually require thatrepparttar 142202 loan amount be covered by life insurance to protect them inrepparttar 142203 unfortunate situation of you dying beforerepparttar 142204 loan is paid.

The problem is that most of us are so excited about buying our new home, we quickly checkmarkrepparttar 142205 box to indicate that we wantrepparttar 142206 mortgage life insurance without checkingrepparttar 142207 market to see if you are paying too much. For smokers or unhealthy individuals, this type of creditor insurance can be an excellent value. Forrepparttar 142208 vast majority of us, healthy, non-smokers, will likely get a better rate by shoppingrepparttar 142209 market.

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