MORTGAGE INSURANCE

Mortgage is typically offered to you at the same time as you borrow money for a mortgage from a lending institution such as a bank or credit union. The type of insurance offered is term insurance. It is important to note that while it is your responsibility to pay the premiums, which are blended into your mortgage payment, the insurance is owned by the lender. The risk involved in this scenario is, should you choose to move your mortgage to another lender and are uninsurable at that time you will not be able to obtain life insurance to cover that debt obligation. By including life insurance to cover the cost of all debts including your mortgage as part of your own financial plan, you own and are therefore in control of your policy.