There are many differences
between Mortgage and
individual life insurance.
Photo by Christopher Chappelear
Mortgage life insurance is insurance that can be purchase from a lending institution.
The insurance pays your mortgage in the event that you pass away. Mortgage life insurance is very different from individual life insurance because the coverage declines each year or declines as the mortgage declines. Some additional differences between mortgage life insurance versus individual life insurance are the following:
1. The bank is the beneficiary. On an individual life insurance policy, the insured can choose their own beneficiary.
2. The coverage is not portable. This means that the insurance is tied to a specific mortgage. With an individual policy, the insured can keep their coverage if they move homes, switch banks, or eventually pay off their mortgage.(What Is Mortgage Life Insurance? continued...)