MORTGAGE INSURANCE FROM BANK VS LIFE INSURANCE
PERSONAL LIFE INSURANCE
Your Insurance remains intact even if you switch lenders Portability
BANK MORTGAGE INSURANCE
When you switch mortgage providers, you usually need to reapply for your mortgage insurance. You own the policy and choose the beneficiary you want to receive the death benefit.
The lender owns the policy and assigns itself as the beneficiary.
Your coverage amount remains intact even as your mortgage balance decreases.
Typical MI declines as your mortgage balance decrease, however, your premiums stay the same.
You benefit from insurance underwritten at the time of application.
Typical MI is only underwritten at the time of death, no medical upfront
Your rates are guaranteed for the life of the policy – it’s right in the contract.
Guaranteed death benefits and premiums, typical mortgage insurance from bank rates are not guaranteed.