Most lenders will automatically offer you life insurance protection on your mortgage. This is different than Default Insurance. Default Insurance protects the lender if you do not meet your payments. Life Insurance is to protect the lender in case of death.
Life Insurance offered by the lender usually only will cover the amount owing on the mortgage, only benefits the lender (not your family), and decreases over time as your mortgage decreases (but your premiums stay the same).
Most mortgage and Insurance professionals agree that a better approach to protecting your estate in case of the untimely event of your death is to seek a Term Life Policy that will benefit your estate & your family, from which they can then choose to pay off the mortgage.
For more information on Life Insurance please visit the following pages for resources:
http://www.insuremymortgage.ca/mortgageinsurance.html
Tags: Life insurance, Mortgage Insurance
