Types of Mortgage Insurance

Whole Life – gives you permanent coverage with level premiums and a guaranteed death benefit. It is perfect for people who think long term and wish to have a plan that is not subject to investment gains and losses. The policy also gains cash value over time, allowing for flexible cancellation options. Though coverage is life-long, you do not have to pay premiums for life. You can purchase the insurance in a predefined number of payments: the shorter the payment period, the larger the discount.
Term Insurance – life insurance for a set period of time and usually the least expensive form of life insurance. It pays a death benefit to your beneficiary(ies) if you die while the insurance is in force. Term Insurance is ideal for young families with a limited budget where as much insurance as possible is required to secure the family's well being, or in business situations such as buy-sell agreements, for mortgage coverage, or to fulfill other temporary needs. If you live past that period and don’t renew your policy, or if you stop paying the premium, the coverage ends and no payment is made.

Types of Term Insurance

• Convertible – term insurance which can be exchanged (converted), at the option of the policy holder, for a form of permanent insurance. Even if you are terminally ill at the time of conversion, the new permanent policy will be issued at standard rates.

• Non-Convertible – to upgrade to a permanent insurance policy, you must submit to a medical exam.

• Renewable – gives you the right to renew the policy after the selected term has expired without proving your health.

• Non-Renewable – the policy terminates at the end of the selected term. If you wish to continue having life insurance, you must reapply and re-qualify for the new policy.

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