Mortgage Insurance vs Term

MORTGAGE INSURANCE vs TERM

With most lending institutions' mortgage life insurance

Mortgage life insurance is non-convertible term insurance
Insurance from lenders usually covers the exact amount of your mortgage. Your coverage decreases as the mortgage is paid down. When the mortgage is paid off, you have no coverage.
The cost per thousand dollars of coverage generally increases every year. When you think about it, this means your cost could increase while your coverage decreases.
The lender owns the policy. You can’t move your mortgage insurance to another lender. If you find a better mortgage somewhere else, you may have to re-qualify medically for the mortgage insurance protection.
Your lender automatically pays off the mortgage if you die.

With Personal Term Life Insurance or
3 in 1 coverage

Term ( 15-20-30/65-100) life insurance products are fully convertible to permanent policies ( depending on insurer)
You determine the amount of coverage you need and your coverage doesn't decrease as the mortgage gets paid down
You choose the type of life insurance that suits your needs, with premiums to fit your budget. For example, you can choose from a range of term and permanent life insurance solutions. You can choose a policy that keeps your premiums locked-in for 10, 20 years or your lifetime.
Your policy can be customized ( Joint-first to die)
You own the policy, not the lender. You can switch your mortgage to another lender without loosing your life insurance coverage
Your beneficiaries can choose how to use the funds ( pay off the mortgage or invest proceeds)

Mortgage coverage 3 in 1 (Term Life Insurance + Disability+ Critical Illness)