Do you have a mortgage? Did you sign up for mortgage insurance? This is usually found at the end of the mortgage application. You answer a few simple health questions and you're done. Right? Wrong.

Here's why:

1. The lending institution owns and controls the policy. They decide who the beneficiary is and it's not you. Not your spouse. They are. They control the use of the death benefit.
2. Policies can be cancelled at any time without your approval.
3. Premiums generally remain level while your mortgage balance decreases.
4. Insurance may be declined, premiums increased or terms revised if you change lenders or try to increase your loan.
5. In most cases, death benefits are never paid out. Policies are underwritten when you die. Remember the few simple questions you answered on the application? They're simple for that reason. Besides, if there was any change to your health, your loved ones lose.
6. There is no legal requirement for mortgage insurance.

What to do? Consider personal insurance:

1. You are the policy owner and you decide who the beneficiary is. You can change beneficiaries as you wish and they have full control over the death benefit.
2. Customizing is possible with the insurance amount, premiums and optional benefits.
3. Premiums can remain level or decline with your declining mortgage balance.
4. Insurance is fully portable should you change lenders or move.
5. Policies are underwritten before they are issued. If you follow correct procedures, you will always be covered.
6. Insurance can be integrated with other financial goals and be updated as your situation changes.

Remember, never cancel an existing policy until a new one is in place. Consider not only life insurance but critical illness. You're more likely to suffer a critical illness than die. Ensure you talk to your financial advisor when planning  insurance and protect your loved ones.