Mortgage life insurance sold by a financial institution can be expensive and has disadvantages. First, the insured amount falls as the mortgage balance drops over the mortgage's life, but the premium does not fall. Second, unlike a term life policy, the bank has the right to hike premiums. Third, it is not portable. So, if you switch your mortgage, you need to reapply for life insurance with your new bank.
One benefit of mortgage protection insurance is that it is issued on a guaranteed acceptance basis, few questions will be asked about health issues or occupations for example. This kind of policy is beneficial for those who have dangerous occupations, such as roofers and electricians, or those who may have health issues.
