When Mortgage Insurance through a Bank Makes Sense

Mortgage insurance through a lending institution, such as a bank or a credit
union, is generally a very poor value to a consumer. However, there are a
few instances, when mortgage insurance or mortgage life insurance through a lending institution can make sense.

Suburban house by Christopher Chappelear

1. When the insured is a smoker. In some instances, when both spouses are on a mortgage are smokers, the plan offered through a bank or a trust company can be lower than an individual life insurance policy.

2. If the insured is already covered under a mortgage insurance plan, with a lending institution and is poor health. Re-applying for an individual life insurance policy likely will not make sense, as he or she will either not
qualify for individual life insurance coverage, or the coverage will be
available on a rated basis, meaning there will be a surcharge because of the
insured's health issue.

3. The insured does not want to go through the hassle of a medical. This is a bit of a quasi-benefit, because while the insured avoids the hassles of a medical exam under most creditor insurance policies, the underwriting is
often done at the time of claim. With an individual life insurance
policy, your underwriting is done at the time of application, rather than at
the time of claim, so you have a better chance of collecting the benefit.

You can get further comparisons on pricing between the bank mortgage
insurance and the individual life insurance policies at our Instant Quote
 Page, or contact us at 1-866-899-4849.