[Drow]

Originally Posted by Tapioca

It's expensive for what it is. You pay a premium for a product that does the underwriting/assessment of risk on the spot vis-a-vis a full medical exam with blood work and a urine sample that would be required for a regular life insurance policy.

Secondly, whatever policy you get as part of your mortgage, the value of the payout decreases as you pay into your mortgage, yet the premium stays the same for the term of the policy. And it only pays out for one thing - your mortgage when you die and nothing else. Contrast this with a regular life insurance policy which pays out when you die and can be used by your estate or successors for whatever they please.

Mortgage disability coverage offered by lenders, which is pretty important, is pretty expensive too. You're better off assessing your own disability coverage with your company and then getting a top-up disability insurance policy through the regular channels, such as a life insurance broker. As long as you're in good health, 3rd party disability coverage is likely to be far cheaper.

If you're single and looking to mitigate risk with a mortgage, I would recommend that you have sufficient disability coverage because you're more likely to suffer from something that affects your ability to earn income rather than death itself. Even if you die, if you have no successors, are you going to care that your property returns to the bank?

Thanks for the insight. I do mortgages and i do sell the insurance as well.