Before you say "yes" to mortgage insurance, consider a product designed to protect you and your loves ones - NOT your lender (the bank). Generally your lender (bank) will offer to sell you mortgage insurance when you have been approved for a mortgage because it may seem convenient at the time.....BUT....
You should know that you have other OPTIONS. Protecting your mortgage with an individually-owned TERM life insurance plan will offer you and your loved ones better guarantees and greater choice. Quite simply, term life insurance provides better value, more flexibility and in most cases at a lower cost.
Term Life insurance is a smarter option. The key difference between the two options is this:
mortgage insurance pays the remaining balance of your mortgage to the bank if you pass away;
term life insurance pays the FULL amount of death benefit to your beneficiary even if you have paid some of your
You will learn why it makes more sense to choose term life iinsurance to cover all your financial obligations, not just your mortgage.
Always have a policy that is FULLY underwritten when you first apply so that you will be fully protected. This is where we can offer YOU the lowest TERM life insurance coverage.
Mortgage insurance from the bank has the highest rate of denied claims in Canada because there is no underwriting when you first apply for it . They simply ask you a few medical questions.
Mortgage insurance Term life insurance
Beneficiary The bank is the beneficiary and the death Your choice of a beneficiary (family member)
benefit goes directly to them to pay off The beneficiary can continue making monthly
your mortgage balance. mortgage payments, pay it off, or meet other
obligations). The choice is YOURS.
Coverage Your coverage gets smaller as you pay off You can decrease your coverage as you pay
the mortgage but your premiums down your mortgage and pay less in premiums
(monthly payments) remain the same or keep your coverage the same. Premiums are
and is generally not guaranteed. guaranteed NOT to change for the life of the
term policy. The choice is YOURS.
Portability If you switch lenders, you'll need to take Your coverage is not tied to your mortgage -
out a new policy and re-qualify for so you can switch lenders or refinance while
insurability. keeping the SAME term life coverage.
Payout at death: The bank/lender will pay ONLY the Life insurance company will pay the FULL
balance of your mortgage. amount of your term life insurance policy.
We feel it is important to educate clients on the different types of products and coverages. It's up to you to decide and to know the differences. Contact us today for a no-obligation quote.