Mortgage insurance or Mortgage life insurance, is the process of protecting your mortgage debt through term life insurance. With a term that matches the length of your mortgage’s amortization period and a payout that covers the amount you owe on the mortgage.
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Do I have to use the money from mortgage insurance to pay off the mortgage?No, you can use the money as you wish. For example; You can pay off debts, pay for child’s education or buy a vehicle.
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Do I get to choose the beneficiary for the mortgage insurance?Yes, you can choose anyone as the beneficiary of mortgage insurance.
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Will my premiums keep increasing in the mortgage insurance?No, your premiums will not increase during the term of the mortgage insurance.
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If I take my mortgage to new bank do I need to apply for a new mortgage insurance again?No, your current mortgage insurance will still be effective.
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Is my personal mortgage insurance cheaper than the bank issued mortgage insurance?Yes, my personal mortgage is cheaper than the mortgage insurance and saves you money.