Question:

Should I get mortgage insurance from my bank?

Answer:

Lenders will often offer you to sign a mortgage life insurance that will protect the family if the person who carries the mortgage passes away. This coverage is often made available through a bank or another lending institution.

As an alternative to a mortgage life insurance, one may consider term life insurance which will not only cover mortgage payments, but will also take care of all other arising expenses should the person bringing most income at home suffers disease, disability or death.

Although it may seem convenient to get a mortgage insurance from your bank or lender, you may benefit significantly better if you shop around for a tailored term life insurance policy that will not only offer you more coverage and flexibility, but will also have lower monthly premium. A term life insurance may be cheaper than a life mortgage insurance and still get you exceptional coverage, and perhaps you'd better refuse politely to your bank or lender when they offer you a life mortgage insurance and get a term life insurance instead.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 2.8/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Definitely
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: