Individual Insurance to Protect You and Your Home

Whether you are purchasing or building a home you should be considering individually owned insurance to protect your family and your home. Purchasing individual insurance is about you and not just your mortgage. By selecting a plan that provides options and additional benefits helps you financially protect what matters most.

Purchasing individual insurance is all about YOU:

  • You own it
  • You choose the product and options that fit your life
  • You decide how much insurance
  • You decide who gets the insurance proceeds

Unlike mortgage insurance which is paid out directly to the lender, individually owned insurance goes to whomever you choose. Your beneficiaries will choose what to do with the payment and can decide what the plan is for the funds at that time.

Typically, mortgage insurance only covers the amount of the mortgage. This coverage amount decreases over time as your mortgage amount is paid down, but your monthly insurance premium payments do not.

With individual insurance you have the option to have your premiums and coverage stay the same as you pay down your mortgage assuming you do not make changes to your policy. You also have built in flexibility to add additional coverage to your policy to cover other debts, income, tax and estate planning needs, and even your child’s education. This can eliminate the need to have more than one policy.

Individually owned insurance offers a range of product options to choose from. For example, term or permanent coverage, different types of insurance (life, critical illness and disability) optional riders and benefits that can be customized and different payment periods. You build a plan that fits your budget and needs.

The policy is controlled by you. When it comes time to renew your mortgage or if you decide to move your mortgage to another lending institution, your individually owned policy will not be automatically cancelled or need to be reapplied for. With mortgage insurance, in most cases, you cannot move the policy, you may have to re-qualify medically and your premiums can change.

When you pay off your mortgage your coverage stays with you and you can decide to keep or maintain the coverage based on your needs at that time. With mortgage insurance your policy and the coverage ends even if you still need insurance to cover other income or estate planning needs.

Mortgage insurance may seem like a good way of protecting your home and family – but is it the best option for you? Insurance is about more than just your home. It’s about protecting what matters most in your life and as such, individual insurance may be a better fit.

As part of a financial plan, the Intent team helps you identify your insurance needs and propose solutions to fit your plan. Connect with us to learn more.