Mortgage Insurance
From finiki
When buying a home, most of us take out a mortgage to finance the purchase. Depending on the size of the mortgage and other factors, it is likely that that the borrower will take out insurance on his own life. Mortgage life insurance is offered by most banks and lending institutions. It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage passes away.
A more cost efficient and flexible way of achieving the same goal is to use term insurance. The premium on mortgage insurance will remain constant over the life of the mortgage even though the mortgage balance outstanding is continuously declining.
Bank Mortgage Insurance versus Term Insurance[1]
References
- ↑ Canadian Consultant Insurance, Bank Mortgage Insurance vs. Term Insurance, viewed May 25, 2009.
