Lenders Sell Creditor Mortgage Insurance Not Term Life Insurance

Creditor mortgage insurance is not the same as Term life insurance. We recommend that you cover your mortgage with a term life insurance policy and not with creditor mortgage insurance.

The main reason is that mortgage insurance from the lender holds the same rate that you pay, even though the mortgage balance decreases. This is something that you should check into. Sign up for a quote here and our agents will be able to help you out with that.

HAVE ENOUGH INSURANCE TO COVER ALL DEBTS
Another thing to keep in mind is that along with your mortgage, you should have enough term life insurance to cover your other debts. A term life insurance policy will be much less expensive than the creditors will charge you insurance. These include credit cards, lines of credit, auto loans, home loans etc.

If a creditor asks you to purchase insurance for one of these types of loans , as him what the rate is per hundred or thousands of dollars.

Example...
A $100,000 term life insurance policy that costs $20 per month = 20� per thousand dollars insured.

The creditor insurance that I've been offered is usually much higher than that. This is especially true when you get those credit card solicitors calling to ask if you'll buy credit card insurance from them. I always refuse that type of insurance.

DEBTS DON'T GO AWAY, EVEN IF YOU DIE
If you die suddenly, the mortgage still needs to be paid, as well as the other debts that you've accumulated. The creditors will go after your estate to collect the balance of what they're owed. If you don't have enough money or insurance to cover you mortgage, your family could lose the house that you've worked so hard for.

Once again, take a moment to sign up for a quote on this site and one of our agents will be pleased to help you calculate how much term life insurance you'll need to properly take care of your outstanding debts, and the other living expenses that would be needed upon your death.

What the Banks don�t want you to know about Creditor Mortgage Life Insurance? Did you know the following facts about mortgage and creditor insurance offered through banks and trust companies?

1. They are "age banded" and may increase your rates as you enter the higher age bands. The premium that the bank quotes you may be valid for only one year.

2. These insurance programs do not offer contractually guaranteed rates. The insurer may increase their rates at any time depending on the experience of the program; the insurance carriers expense factor, the market interest rates, etc.

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