MORTGAGE INSURANCE

Your family home is among one of the largest purchases that you will make in your lifetime. Since most homeowners do not pay their homes off in cash, we tend to borrow from a financial institution and receive a mortgage.

Mortgage Insurance can protect you in the event of 3 catastrophes:

  •  Death
  •  Disability
  •  Critical Illness

Premiums will vary depending on length of mortgage term, size of mortgage, interest rates, sex and smoking status of the applicants. There are a myriad of excellent and competitive products available in the marketplace that are superior to what your bank, trust company or credit union offers with standard creditor protection.

Comparing mortgage and term insurance

Take a look at the differences between protecting your mortgage with personally owned term life insurance versus most lender’s mortgage insurance.

  Term Insurance Mortgage Insurance (Bank plans)

I pay the premiums, so I own the policy, right?

Yes.  You own the policy and you name your beneficiaries.

No.  You’re part of a group policy and the lender is the beneficiary.

Is the coverage flexible?

Yes.  You choose the amount of coverage you want regardless of your mortgage balance.  You can increase or decrease your coverage, renew your coverage, and convert to permanent protection.  If you renegotiate or pay down your mortgage or sell your home, you can continue your coverage.

No.  The lender will only insure you for the amount of your mortgage.  You can’t alter, renew, or convert the policy.  If your move your mortgage to another lender, you can’t transfer your policy.

Your coverage ends when the mortgage is paid off or ends.

Can my beneficiaries use the proceeds from the policy for something other than paying off the mortgage?

Yes.  Upon death, the proceeds go directly to your beneficiary who then decides how to best use the money.

No.  Upon death the benefit goes directly to the lender to pay off the mortgage.

Is the coverage guaranteed?

Yes.  Your insurance and premiums are guaranteed for the life of the policy.  Only you can cancel or make changes to it.

No.  Your premium and benefits are not guaranteed.  Your lender can make changes at any time.

I look after my health and don’t smoke.  Will that make a difference to my premiums?

Yes.  The premiums you pay are based on your age, health, and smoke status.

No.  Since mortgage is usually provided in a group plan, you pay the same premiums as everyone else.

If you have not reviewed your mortgage insurance in the last year, contact your Advisor or our office today to review your mortgage insurance policy or for a complimentary mortgage insurance review.