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 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, and 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 person has paid premium payments at regular intervals (like monthly payments) to the insurance company.

Term insurance is an insurance policy that protects you for the duration of the policy – like twenty or thirty years; or will protect you till a specified age, depending on the term you choose. The premium you have to pay doesn’t change – but if you do renew your policy, you may need to pay a higher premium, depending on your health and on your age. Term insurance policies will stay with you for the entire duration of the policy, even if you do change lenders, or companies. These insurance policies do require a medical exam, however, which can make this harder to apply for than a mortgage insurance policy. The medical exams and questionnaires are performed before you make a claim and begin paying premiums.

Mortgage insurance; however, seems to be more convenient to apply for than term insurance. This policy is purchased from the bank (or other institution) that’s 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, and while the premium may stay the same, the amount of money you get back from the insurance may reduce as you pay your mortgage loans. Added to this is the fact that if you change lenders or banks, you may have to renew your policy. 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) then looks into your medical history. This means that if the bank Web List Posting discovers that you do have a medical condition – whether you knew about this condition or not – your claim to insurance 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 that is willing to help you, no matter what your financial situation may be. With a team of highly trained, experienced staff at their service, you can be sure that you will be given expert and professional advice as to which insurance plan to have, and you can even have a tailor-made insurance plan that is designed 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 dearth of options for you to avail from, and you can be sure of the fact that Best Mortgage Montreal will make sure that you are happy with your insurance plan, and will change it if necessary.

read more ;