[Robert F. Sanchez]

I'm searching for some clarity on Mortgage Default Insurance. I undoubtedly recognize the distinction between these 2 varieties of insurance. Mortgage Default Insurance, that this protects the investor just in case one cannot create mortgage payments. Mortgage life assurance, the insurance that covers the price of the mortgage and therefore the beneficiary is that the investor. Term life assurance - insurance for any set quantity on total insurance desires and you select the beneficiary. Is Mortgage life assurance could be a more sensible choice than Term Life? I am planning to join on mortgage default life assurance of 5 Year Mortgage Rate, Canada. So before make a decision, I would like to know more about it. Thanks in Advance.

 

[Auld Yin]

Mortgage Default Insurance is a requirement for those mortgagors with less than 20% down payment. It is, as name suggests, to protect mortgagees from situations where the property value is less than the outstanding mortgage. This is not life insurance. For life insurance to cover the mortgage Term Insurance is better than Mortgage Life Insurance.