For those individuals who can’t afford the 20 % down for their house, the loan provider will need you to bring mortgage life insurance coverage to secure them in case you end up being unable to pay.
For this situation, the mortgage life insurance is owned by the bank, not by you. You are paying for life insurance on your life for the advantage of the bank.
Mortgage Life Insurance – Different Types
Group and individual mortgage insurance coverage are 2 different types of home mortgage life insurance coverage policies. Due to the fact that it is in fact owned by the bank, with group mortgage life insurance coverage you are covered by a group policy owned by the bank and you have no control over the policy.