In most instances, individual life insurance offers a much better value than mortgage insurance through a lender. Individual life insurance policies provide level coverage, the plan is portable, if you decide to switch homes or move to another bank, and the insurance company allows you to choose your own beneficiary. There are also substantial discounts to non-smokers and people who have a healthy lifestyle. Mortgage insurance through the bank offers declining coverage, the bank is the insured’s beneficiary and there are generally no discounts given to non-smokers or people with a healthy lifestyle