When purchasing a home some buyers consider taking further steps to protect their property and family by securing insurance. Mortgage Creditor Insurance and Life Insurance are generally the two options. Our team sat down with Edward McCloskey of Webster Benefit Consultants to understand why he always suggests Life Insurance to his clients.
Written by Edward McCloskey - Insurance Broker – Webster Benefit Consultants
I always suggest Life Insurance to my clients over mortgage protection insurance.
Why?
Life insurance can be used to accomplish a wide range of goals other than to only cover your mortgage. It can be used for personal affairs and for business. An individual life insurance policy can be adjusted over time to accommodate any changing needs and circumstances. Actually, life insurance rates can even cost less than mortgage protection insurance. Most importantly, with life insurance, your eligibility is fully determined from the outset rather than in part after death - when your beneficiaries need the money the most!
Key advantages
You choose the beneficiary
The benefit goes directly to your beneficiaries when you die
You choose the insurance coverage amount
Your benefit does not decline over time
Life insurance premiums stay the same when you refinance your mortgage
You keep the insurance if you change mortgage lenders
You have the flexibility to change type and amount of your insurance, or even convert from term to permanent
Better rates for those who maintain their health and for non-smokers
