BANK INSURANCE VS. LIFE INSURANCE

Let's Break Down the Differences Between the Two:​

BANK INSURANCE

LIFE INSURANCE

Control:

Mortgage Insurance
from lender
Lender owns the policy and they are the beneficiary​

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Individually Owned
Term Life Insurance
You own the coverage and choose who receives the death benefit

Premiums:

Mortgage Insurance
from lender
Mortgage insurance rates are not guaranteed and can increase​

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Individually Owned
Term Life Insurance
Your rates are guaranteed for the life of the policy

Portability:

Mortgage Insurance
from lender
You need to reapply for coverage if you move lenders

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Individually Owned
Term Life Insurance
Coverage remains intact if you switch lenders​

Coverage Amount:

Mortgage Insurance
from lender
Coverage declines as your mortgage is paid off. Premiums stay the same​

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Individually Owned
Term Life Insurance
Coverage amount stays the same even as your mortgage decreases

Comfort:

Mortgage Insurance
from lender
Underwritten at the time of death

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Individually Owned
Term Life Insurance
Underwritten at the time of application.
No surprises at the time of claim