Quote:
Originally Posted by Slava
Mortgage insurance is generally a bad deal. I can explain the full reasons for this, but near the top of the list is the idea that you’re basically insuring the lender as opposed to you and your family. A close second though is that a significant amount of claims are declined by mortgage insurers due to the underwriting at the time of the claim. So in layman’s terms, someone dies and then they decide whether they would have insured them. I know that sounds insane, but that’s how it works.
It’s far better to have your own, stand-alone life insurance policy. The costs are similar in most cases, but the coverage is far stronger and actually goes where you prefer and can be used as your beneficiaries see fit.
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thank you. my mortgage is up for renewal, and I before we go in, I want to be able to successfully argue with my wife as to why we shouldn't go with the insurance.