Well-informed financial advisors do not recommend buying mortgage insurance from your bank or mortgage lender. Life Insurance is a better option and here are a few reasons why.
The payout from mortgage protection insurance shrinks with your mortgage’s declining principal balance. Life insurance does not shrink over the term of the policy.
With mortgage insurance, you may find out when you file a claim that you aren’t actually eligible for coverage as you were never officially underwritten medically. This risk is eliminated with life insurance.
With life insurance, if you switch mortgage lenders you won’t have to worry about canceling your existing mortgage insurance and re-qualifying with the new mortgage lender.