Mortgage Insurance is issued by your lender and is designed to pay off your mortgage in the event of your death. The amount to be paid out decreases as your mortgage balance decreases, but the monthly premium does not, and once your mortgage is paid off, the insurance coverage ends. If you move your mortgage to another institution, the coverage will terminate, and you will have to re-qualify for insurance with your new institution. Any death benefit payout is only paid to the lender.
Individual Life Insurance is issued by an insurance company, and owned and controlled by you, the owner. Your coverage amount never decreases, and your premiums remain level for whatever term elected by you. Because the coverage isn’t linked to your mortgage, the coverage stays intact even once your mortgage is paid off, and any death benefit is paid out to the beneficiaries that you specified in your contract.
Insurance is about more than just your home: it’s about protecting what’s important in your life. That’s why individual insurance may better suit your needs.