Many young people are not thinking about insurance policies, but they should be.

Though the chance of death in your 20’s and 30’s is fairly low, as you enter adulthood and take on more debts from things like a mortgage, a car, or education, you should be asking yourself “what debt will my spouse or family be stuck with if I die?”

If you’ve just purchased your first home, high mortgage insurance premiums may leave you feeling unsure if the cost is worth it. If you put down 20% on your house, you can opt-out, but otherwise, many banks require mortgage insurance. Often people don’t realize they can get much cheaper and better coverage with a mortgage-life insurance policy through an independent broker instead.

One benefit of a mortgage-life insurance policy is that your age and health determine your premiums. The younger and healthier you are, the lower your monthly premiums are. That means your family or spouse’s protection from debt if you suddenly pass, without breaking the bank.

Premiums with bank-owned insurance can be up to 75% more expensive than with mortgage-life insurance through a broker. A mortgage-life insurance policy can replace the bank-owned insurance they may tell you is required before approving your mortgage. The banks, however, are unlikely to inform you of the outside options available as they try selling you their policy to make commission.

Before you say yes to credit-life insurance through the bank, make sure you understand what your policy covers.

As a young person, you may not have put much thought into other expenses you could leave behind if you suddenly pass. The mortgage on your house is one of many expenses your spouse or family may have to deal with. Funeral costs, for example, can range from $5,000 to $15,000. There may be car loans, or school debt to pay off. Money from your mortgage-life insurance claim is used how your family wishes. They may need to cover more immediate expenses such as living costs due to loss of household income, or potential moving costs.

Credit-life insurance through the bank will only cover your mortgage, and that’s it. Your spouse or family sees no money, and is left on their own to pay for other expenses. A mortgage-life insurance policy through a broker will cover the remaining mortgage if your family chooses, but can be used towards any costs or debts they deem most important to pay off.

To learn more about the differences between bank owned credit-life insurance and mortgage-life insurance through a broker, contact an independent insurance advisor and discuss a plan that works for the needs of you and your family now, and in the future.