Before You Say "Yes" to Mortgage Insurance, You Have Options

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When you're approved for a mortgage, your lender will offer to sell you mortgage insurance.  It may seem convenient at the time but you have options - options that help protect you and your family, not your lender.  Protecting your mortgage with an individually-owned term insurance policy plan offers you and your loved ones better guarantees and greater choice and in most cases at a lower cost.


                                                             With Term Insurance                         With most lender's mortgage ins.


I pay the premiums, so I                    YES.  You own the policy and             NO.  You're pare of a group policy 

would own the policy right?              you name your beneficiaries.              owned by the lender.  Your lender

                                                                                                                          is the beneficiary.


Is the coverage flexible?                    YES.  You choose from the                NO.  Your lender will insure you

                                                              coverage and the amount of              only for the amount of your

                                                              coverage you want, regardless of      mortgage.  You can't alter, renew or

                                                              your mortgage balance.  You can      convert the policy.  If you choose to

                                                              increase or decrease, renew, or        move your mortgage to another

                                                              convert your coverage to                   lender, you can't transfer the policy.

                                                              permanent protection                        Coverage ends when mortgage is

                                                                                                                        paid off or ends


Circumstances change.  If it's           YES.  Upon death, the benefit           NO.  Upon death, the benefit goes

better for my beneficiaries to            goes directly to your beneficiaries     directly to your lender to pay off the

use the proceeds from the policy     They decide how to best use             mortgage

for something other than paying      the money

off the mortgage, will they have

that option?


Is the coverage guaranteed?             YES.  Your premiums and benefits    NO.  Your premiums and benefits

                                                              are guaranteed for the life of the        are not guaranteed.  The lender

                                                              policy.  Only you can cancel or          can change or cancel the policy at

                                                              make changes to your policy             any time.


I look after my health, and I               YES.  The amount you pay for           NO. Since your mortgage insurance

don't smoke.  Will that make a          your coverage is based on your         is usually provided through a group

difference in the amount I pay          age, health and smoking status          plan, you pay the same rate for your

for coverage?                                                                                                 coverage as everyone else