Term Insurance Vs Mortgage Insurance – What’s the Difference?

Life insurance is a policy that will protect you from financial loss that may result from the premature death of the insured individual. For example, if you are named beneficiary of life insurance, and the insured individual passes away, you will receive the proceeds. You won’t have to bear much financial loss because the insured person has passed away. This amount is paid to you because the insured has paid premium payments at regular intervals (like monthly payments) to the insurance company.

Term Insurance Vs Mortgage Insurance – What’s the Difference? 1

Term insurance protects you for the policy’s duration – like twenty or thirty years; or will protect you till a specified age, depending on your chosen term. The premium you have to pay doesn’t change, but if you renew your policy, you may need to pay a higher premium, depending on your health and age. Term insurance policies will stay with you for the entire policy duration, even if you change lenders or companies. However, these insurance policies require a medical exam, making this harder to apply for than a mortgage insurance policy. The medical exams and questionnaires are performed before you make a claim and pay premiums.

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However, mortgage insurance seems more convenient to apply for than term insurance. This policy is purchased from the bank (or other institution) lending money for your mortgage, and the premium is added to the monthly payment of your mortgage loan. However, this insurance policy is more expensive than term insurance policies. While the tip may stay the same, the amount you get back from the insurance may reduce as you pay your mortgage loans.

Added to this is that you may have to renew your policy if you change lenders or banks. One benefit to this kind of insurance policy is that mortgage insurance policies do not require medical exams, making it easier to apply for. Once the claim is made, the bank (or other institution) looks into your medical history. This means that if the bank Web List Posting discovers that you have a medical condition – whether you knew about this condition or not – your insurance claim could be denied.

Depending on your financial situation, it is up to you to decide which kind of insurance policy will work for you. Best Mortgage Montreal is one insurance company willing to help you, no matter your financial situation. With a team of highly trained, experienced staff at their service, you can be sure that you will be given expert and professional advice about which insurance plan to have. You can even have a tailored insurance plan to fit you and your unique financial situation. With a wide network of banks, credit unions, private funds, and other lending sources, there is no shortage of options for you to avail of, and you can be sure that Best Mortgage Montreal will make sure that you are happy with your insurance plan, and will change it if necessary.