Blog & Articles - Gibb Insurance

Mortgage vs Term Life Insurance
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Mortgage vs Term Life Insurance
There are many reasons why a term life policy is a better choice: 

  • Premiums – with mortgage insurance, there are no discounts for being a non-smoker or for being healthy, everyone pays the same premiums. 
  • Underwriting – mortgage companies use “post-claim” underwriting, which means they’ll only decide if you qualify after a claim is made, at which point they may decide that you never qualified. 
  • Declining Benefit – Mortgage insurance declines as you pay off your mortgage but the premiums remain the same. 
  • Beneficiary – With mortgage insurance, the beneficiary is the bank, with personal term insurance you assign the beneficiary. 
  • Portability – Mortgage insurance is tied to your home. A simple term policy is portable and covers you regardless of who your mortgage is with. 
  • Consolidation of coverage – Mortgage insurance only covers your mortgage, a personal term policy can cover all your insurance needs (mortgage, income replacement, education, childcare etc)

Understand more about term life insurance:
  • Term life insurance provides simple and affordable protection for a defined period of time when insurance needs are high but available funds are limited.
  • In the event of your death, the policy pays a cash benefit, tax-free, to your beneficiaries.
  • The costs will never increase for the entire term.
  • Ideal for people who want to ensure debts, like mortgages or loans are paid off, childrens education needs are met or to replace a loved ones income if they were no longer able to support their family.

We're here to help you navigate the sometimes complicated world of insurance. Please reach out to us if you have questions about term life insurance. 1.844.390.8228