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Mortgage Insurance

mortgage insuranceThe benefits and security of purchasing mortgage insurance from a Life Insurance Company are exceptional.

Most people donʼt realize that the life insurance sold by mortgage lenders is different than the policies sold by life insurance agents and brokers. It sounds like a great deal at the time but mortgage insurance or creditor insurance can have a number of drawbacks.

We have compiled a list for your review:

Mortgage Lender

Life Insurance Company

  • Your insurance covers only your balance. 
  • Your mortgage debt reduces over time and you pay the same amount per month. 
  • If you die, only the outstanding balance on your mortgage is paid off. 
  • The mortgage lender is automatically the beneficiary. 
  • If you take your mortgage to another lending company, you may lose the coverage. 
  • Creditor insurance can be a higher cost and underwriting is done at claim time, which is scary!
  • You can choose different types and different amounts. 
  • Your coverage does not decrease over time unless you choose to change it. 
  • If you die, the benefit is paid to your beneficiary, who can use it as they see fit. 
  • You name the beneficiary. 
  • If you take your mortgage to another lender, you keep your coverage. 
  • Underwriting for life insurance is completed at application time, so there are no surprises!

Have any questions?

Contact Brown Benefits to discuss your mortgage insurance options.