Did you take the mortgage insurance offered by your bank? That may have not been your best choice and here’s why.
If you’re buying a home or renewing an existing mortgage you may be offered mortgage insurance by your lender to cover the balance (or a portion of the balance) of your mortgage. Mortgage life insurance is typically marketed towards new homeowners who may be concerned that an unexpected death or illness could leave their loved ones burdened by a large mortgage.
Personal life insurance can perform a similar function, but isn’t tied to your mortgage. It’s designed to provide your beneficiaries with financial support in the event of your death, and its flexibility allows your beneficiaries to use the money for whatever purpose they wish. It’s an individual insurance product.
If you thought that mortgage insurance was the only way to go, It isn’t. Life insurance performs a similar function and the benefits are substantial. Make sure you know the difference.
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