Let's get started
Choosing the type of life insurance that works best for you is an important decision. Homeowners often consider a choice between two types of life insurance: mortgage insurance, which pays a cash benefit to your lender to cover the outstanding balance of your mortgage, and term life insurance, which pays a fixed cash benefit to your beneficiaries if you pass away.
Mortgage insurance or term life insurance: which works better for your situation?
sponsored by
Take this quiz to see which type of insurance offers the benefits that mean the most to you.
Let's get started
Who should own your insurance policy?
The mortgage lending institution
B
Me
A
Me
A
The mortgage lending institution
B
With term life insurance, you own the policy, and the benefit can be used to cover any cost. With mortgage insurance, your lending institution owns the policy for the specific purpose of repaying the outstanding balance of your mortgage
sponsored by
How much life insurance coverage are
you looking for?
Enough to cover
my outstanding mortgage
B
Enough to cover
the needs of my beneficiaries
A
A
B
Enough to cover
my outstanding mortgage
Enough to cover
the needs of my beneficiaries
Mortgage insurance will cover only the balance of your mortgage at the time you pass away. Term life insurance will pay a fixed benefit amount to your chosen beneficiaries.
sponsored by
Would you ever consider changing your mortgage lender to receive better terms?
B
A
A
B
Yes
Yes
No
No
If you change mortgage lenders, your mortgage insurance will be terminated, and you would have to re-apply for a policy with the new lender. A term life insurance policy remains active no matter who your mortgage is with.
sponsored by
How long do you want your term life insurance coverage to remain active?
Until my mortgage is paid off
B
A
A
B
Until my mortgage is paid off
For as long as I choose
For as long as I choose
Term life insurance can offer benefits over a long period of time, within the terms of the insurance contract, and can be used to pay an outstanding mortgage or other costs to help maintain your family’s lifestyle. Mortgage insurance policies are terminated when the mortgage is paid off.
sponsored by
Which factors should determine
my premiums?
B
A
A
My premiums should reflect
my individual criteria based on gender, health and age.
My premiums should reflect
my individual criteria based on gender, health and age.
My premiums should be determined by the overall
group of mortgage borrowers
and their risk profile.
My premiums should be determined by the overall
group of mortgage borrowers
and their risk profile.
B
Mortgage insurance places you in a large group with people of the same age paying the same premium. Term life insurance is often more affordable because it considers the risk and health factors that are unique to you.
sponsored by
Based on your answers, it sounds like term life insurance is the type of coverage that will work best for your situation. Talk to a Beneva advisor about choosing the right type of term life coverage for you.
Conclusion 1:
Talk to a Beneva advisor
Retake the quiz
sponsored by
Based on your answers, it appears that you prefer buying mortgage insurance with your lender. Talk to a Beneva advisor to discover what an insurer can provide that a lender cannot before making a final decision.
Conclusion 2:
Talk to a Beneva advisor
Retake the quiz
sponsored by
