Life & Mortgage Insurance

Life Insurance – Who Needs It?

Death isn’t something that we normally like to think about, but when it comes to protecting your family from a mountain of debt, it’s a subject that should definitely be discussed. If you were to pass away, would your spouse be prepared – and financially capable – to shoulder a mortgage all on his or her own?

Life insurance, whether it is “mortgage” life insurance or “personal” life insurance, can remove the “what if?”, and provide you peace of mind if something were ever to happen to you.

From the list below choose your life event(s) and consider how life insurance would protect your household’s standard of living if you pass away.

Mortgage Insurance vs Personal Life Insurance

Your home is probably the biggest investment you’ll ever make. Essentially, there are two major types of life insurance related to your mortgage: mortgage life insurance, and personal life insurance. When you arrange a mortgage with a financial institution, they must ask you if you want to insure your mortgage through them. But mortgage insurance from your bank or mortgage lender may not be your best alternative.

Personal Life insurance gives you more options and greater control over your mortgage protection.

Mortgage Insurance Life Insurance
Your insurance covers only your mortgage balance. You can choose from different types of insurance (i.e. term or permanent) with a death benefit that covers more than just your mortgage balance.
Your premiums do not go down even though your mortgage coverage amount will be shrinking. Your coverage amount does not decrease over time unless you choose to change it.
If you die, whatever the outstanding balance on your mortgage is paid off. There is no money paid to your survivors. If you die, the death benefit is paid to your beneficiary who can use it as they see fit, not just to pay off your mortgage.
The mortgage lender is automatically the beneficiary. You name the beneficiary.
If you take your mortgage to another company, you may lose your existing mortgage insurance and may be required to re-qualify for new mortgage insurance. If you take your mortgage to another company you keep your existing insurance, so you don’t have to re-qualify.
You lose all your coverage when your mortgage is repaid, assumed or in default. As long as premiums are paid your coverage remains in place, even if your mortgage is repaid, assumed or in default.
You have no flexibility to change your coverage as your needs change. If you decided you need coverage only until your mortgage is repaid but later realize you require coverage for other needs, you can convert your insurance to a permanent plan.

Wouldn’t it be better to own your policy and maintain control over this important type of protection? Before you sign anything, talk to us about a better way to guarantee the repayment of your mortgage.