Buying a new home is an exciting experience. However, most of us need to finance a large part of the purchase price of our homes. Taking on a mortgage is a big responsibility.
When you negotiate your new mortgage, one of the things that your lending institution might suggest is that you apply for life insurance. This is a good idea. After all, if you should die prematurely you want to ensure that your family is looked after. A fully paid mortgage would make life a lot easier for them.
Your new lender may suggest that you purchase insurance as part of your mortgage. This purchase may be quick and easy, but beware…there are pitfalls. While the employee helping you complete the mortgage paperwork may have the best of intentions, they are not insurance professionals and quite possibly won’t be aware of your options.