Seeking mortgage life insurance? Term life insurance is the perfect fit – and much better than the banks mortgage life insurance (it’s also likely cheaper than the banks’ coverage).

 Life insuring your mortgage has two attributes that you will want to look at – the cheapest premium for a high amount of coverage, and coverage over a specific period of time after which the life insurance is no longer needed. That’s pretty much the very definition of life insurance – level insurance and premiums for a period of time (up to 30 years) at inexpensive premiums. So term life insurance is a very cost effective way to cover your mortgage.

Connvertible term life insurance has a feature that blends well with mortgage coverage. The ‘conversion’ feature lets you exchange your term policy for a permanent life insurance policy. While this is likely not an immediate concern, it’s actually something that turns out to be useful in many cases. You can cover your mortgage for many years with the term life insurance, then when you’re older and approaching retirement and the mortgage is paid off, the conversion feature lets you switch to a permanent and much smaller (e.g. $50k or $100K) lifetime life insurance policy for use as final/funeral expense insurance. And because you can do this conversion without a medical exam, it means when you’re older you have this available to you even if your health has declined. 

Term insurance for mortgage protection life insurance has even more benefits over bank mortgage life insurance. Once a term life insurance policy is issued, premiums and coverage remain level for the selected term – 10,20 or even 30 years. It remains level despite any changes in your mortgage, health, or lifestyle. Bank mortgage life insurance on the other hand, will need to be renewed (and requalified with any medical conditions) every time your mortgage changes – if you change banks, the mortgage comes up for renewal, and even if you open the mortgage up for an increased amount i.e. blending rates. Term life insurance is thus a safer more stable choice for your life insurance needs - it’s a far better choice than mortgage life insurance available through the banks.