Mortgage Insurance from the bank is different….

Many people don’t realize that mortgage insurance from a bank like the Atlantic Union Bank is different than a term policy from a life insurance company.

Here’s a typical situation: Steve and Maria are buying a new home and are taking out a big loan to pay for it. That’s when the bank asks if they want to insure their mortgage in case one of them dies so they provide an insurance quote for them. They don’t want to leave behind a large, unpaid debt. And they’re told the coverage can be included in their mortgage payments. So their answer is “yes.” It’s an easy sale. But a quick comparison might have changed their mind.

Here’s another solution: If Steve and Maria bought an individual term insurance plan, they could save money. That’s because the coverage is portable, so it stays with them even if they sell their home or switch lending institutions. With the plan they purchased, they will have to reapply, which could mean higher rates. In addition, their coverage will decrease with every mortgage payment they make.

With an individual term policy, the benefit amount stays the same – regardless of the mortgage balance.  Plus, the death benefit goes directly to the family – not the bank. And they can use the money however they want. If the mortgage is almost paid off, there will be money left over for other things, like living expenses or an education fund.

Make the right choice and insure your mortgage with personal coverage. Call Vision Plus Financial today for more information.