One other problem with the bank sponcered plans are that most of them are set up with decreasing benefits. In other words your insurance benefit will decrease as your loan decreases. For example if you start out with a $100,000 mortgage and you pay on it for 15 years and now you only owe $72,000 your insurance contract's death benefit will also drop to $72,000. At first this might not seem like a problem and it's really not. But what if you could instead have a level benefit for the same price? For example what if you could have a $100,000 death benefit no matter how much you owed on the house and it didn't cost you anymore to do it that way? Wouldn't that be a better deal? Well that deal dose exist so you may want to be careful before you sign up for the first plan you see.

The other thing you really want to look out for with the bank's plans are that almost all of them are non-transferable. This means that if you change banks, or you refinance, or even if you just sell your home you now have to get a brand new mortgage insurance plan because the bank's plan doesn't carry over. What if your health changes and you don't qualify? What if your new bank doesn't offer mortgage protection (not all banks do)? What if a few years have gone by and now you are older and the costs have increased due to your age? If any of these things happen than you would have been better off buying a plan that was transferable from one mortgage to the next. Theses transferable plans are often not available through the bank but must be purchased through an independent insurance broker.

The last thing you need to be aware of is that many mortgage protection plans are offered as a group benefit. Just like the term life insurance that you get from your employer. Group plans are offered to a group of people with the same set of circumstances and because of this they are easier to qualify for. This can work to your advantage or your disadvantage depending on your circumstances. For example if you are not so healthy and you already have a health problem like diabetes you will most likely get a very favorable rate if you purchase a plan as part of a group because the health risks are spread out amount the entire group and you are not left to bare the full cost of your illness alone. However if you are in excellent health and are not overweight and you don't take any prescription medication than you may be better off not being lumped in with a group of people that may be less healthy than you. If you are willing to subject yourself to an easy medical exam in the comfort of your own home or office than you may just qualify for a much cheaper rate.

These are just some of the things you should take into account when considering mortgage protection insurance. But the most important thing to consider is will mortgage protection insurance by itself really protect you and your family? Even if you leave your home paid off for your loved ones will they really be able to afford to live in it without your income? Leaving your home free and clear for the ones you love is certainly a noble idea and a commendable one but have you really thought about what they would do to survive financially in that house without you to take care of them? If you really want to protect yourself, your home, and your family than perhaps you should consider talking to an advisor that can help custom tailor a plan to meet your exact needs. Is mortgage insurance a good idea for you? The only answer any qualified advisor can give without looking at your particular circumstances is, it depends. At this point one of the smartest things you can do is talk with a Registered Financial Consultant to determine exactly what you and your family need so you can make an educated buying decision.

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