Term life insurance offered by an insurer or Mortgage insurance offered by a lending institution?

Term life insurance offered by an insurer or Mortgage insurance offered by a lending institution? ’By Bruno Scanga Financial Columnist You are the contract owner and the only one who can make any changes ? No you are not. The lending institution is the contract owner. It can make changes to the terms and conditions at any time. You choose your insurance amount? Lending institution. This amount can therefore remain fixed even if the balance of the loan decreases. Typically, the insurance amount decreases in line with the outstanding mortgage balance. Known as decreasing term coverage. Premiums are guaranteed for the duration of the coverage. Premiums may stay the same however as coverage decreases this means your premiums are going up. Rates are established based on your age, sex, and smoking status. This is correct however very few medical questions are asked so all medical information will be required at time of claim. Premiums are not necessarily guaranteed and can increase according to the group claim rate under the group insurance contract. Some institutions can even increase the loan interest rate to include the cost of insurance, which represents an additional cost. This is correct The contract can remain in force after the loan has been paid. No this will not happen. You can convert part or all of this term insurance into permanent insurance? No you cannot convert these plans. The contract ends when the mortgage loan balance has been paid. The coverage remains unchanged even if you change lending institutions. No you will lose your coverage when mortgage is paid off or you move to a new institution overage can be applied to insure other loans when needed? No this is not possible. The insurance is cancelled if you change lending institutions. You must requalify for new life insurance. Yes correct You choose your beneficiaries. No usually, the lending institution designates itself as the beneficiary Beneficiaries have the freedom and flexibility to use the insurance amount as they see fit. Only the balance of the loan will be reimbursed You can add a rider for critical illness or total disability, with benefits paid directly to the insured person, to address different needs. The benefit is paid directly to the lending institution When applying for mortgage coverage ensure you ask these questions and ensure you have documentation to confirm all coverages are provided bases on your need.