Most lending institutions offer mortgage life insurance as a part of their mortgage packaging. But look carefully before you sign on the dotted line. You could find yourself locked into insurance that does more to protect your lender than you.
A personal life insurance policy doesn’t insure your mortgage – it insures you. After all, you’re the one making the mortgage payments. Mortgage life insurance from lending institutions may leave you with fewer options if your health changes or you become uninsurable. Additionally, mortgage life insurance usually covers the exact amount of the mortgage. Your coverage decreases as the mortgage is paid down.