When purchasing a home, the best decision you can make is saying no to mortgage insurance and purchasing a term-life insurance policy instead.

Purchasing life insurance will guarantee that your beneficiary will actually receive the policy benefits, the premiums you're paying are the best price for your situation, and your beneficiary will be able to use the policy benefits as they see fit.

Two of the most negative aspects of mortgage insurance are:

1) The benefit value declines as you pay down your mortgage. This means you are continuing to pay the same premiums for a policy that's value is continuing to decrease. With life insurance, your policy value stays the same throughout its existence as you pay premiums.

2) Most banks that offer mortgage life insurance use"post-claim underwriting". This means you only find out of if you actually qualify for the policy benefits after a claim is made. It is possible that they decide you don't qualify and you will receive nothing. With life insurance, you are underwritten and approved before the policy is active, and therefore can guarantee that you will receive the policy benefits after a claim.

If you would like to read more about why you should choose term-life insurance instead of mortgage insurance, click the link below:

http://www.huffingtonpost.ca/tea-nicola/mortage-insurance-reason-why_b_8113364.html