Most financial institutions offer their own mortgage insurance. However, you are under no obligation to purchase coverage from the lender. In fact, it’s definitely in your interest to compare the different options available before signing. Here are the questions you should absolutely ask before choosing your mortgage insurance:
1. Can the mortgage insurance also cover my personal loan and line of credit?
2. Will I be the owner of the insurance?
3. What is the exact amount that I will have to pay in premiums?
4. Can I designate a beneficiary in the event of my death? If so, can my beneficiary use the amount as desired?
5. If I change financial institutions, will I still be covered?
6. If I prepay my loan before the end of the term, can I convert the insurance to another product?
Probably the best question to ask yourself is this: Isn’t the cost of mortgage worth the peace of mind it provides? We never know what life has in store for us.