Mortgage Protection

Why consider mortgage protection insurance?
Mortgage Protection insurance is a life insurance policy that pays a certain amount of money to your family or beneficiaries if you were to die.

Things you need to know about mortgage protection.
Before you buy, ask the following questions:

• Who is the beneficiary?
• Is it convertible?
• Can you keep it if you move?
• Are you in control?
• Is the amount of coverage going to stay the same for the length of the term?

Term Life insurance vs mortgage through a lender

When it comes to protecting your mortgage, you have a choice. Go the route of a traditional lending institution, or take advantage of a great alternative with Term Life insurance.

• PlanTerm Life InsuranceMortgage insurance through a lender/bank

• Portability

  Your mortgage protection remains intact even if you switch lenders or you move.

  When you switch mortgage providers, you usually need to reapply for your mortgage insurance
  

• Control

  You pay the premium; you own the policy and choose the beneficiary you want to receive the death benefit.

  The lender owns the policy and assigns itself as the beneficiary. You pay the premium.
  

• Level Coverage

  Your coverage amount remains intact even as your mortgage balance decreases or you pay off your mortgage.

  Coverage declines as your mortgage balance decreases, however your premium stay the same.
  

• Comfort

  You benefit from insurance underwritten at the time of application.

  Insurance is only underwritten at the time of death leading to many unqualified claims.
  
  

• Guaranteed Death Benefit and Premium

  Your rates are guaranteed for the life of the policy.

  Lender mortgage insurance rates are not guaranteed.
  

When you chose to protect your mortgage with Term Life insurance, you benefit from features designed for your peace of mind. With a Term Life insurance policy, you’re leaving your beneficiaries with the flexibility to use the death benefit in any way, for any reason. For example, they can use that money to cover:

• mortgage payments
• debts
• the cost of childcare
• the cost of other living expenses

Mortgage insurance through a bank does not give you these features. Bank mortgage insurance pays all or a part of the remaining amount owed on the mortgage in the event of your death. But no money goes to any beneficiaries/your family. It only goes to your bank or lending institution and your family’s needs may well go beyond just a mortgage. They may have other expenses to cover as well. That’s why you may need to consider mortgage protection with Term Life insurance instead.

When buying insurance, remember to make sure that you have enough coverage to meet your family’s financial needs, whether it’s making mortgage payments, paying off debts or anything else. We can help you find Term Life insurance plans to fit your mortgage.

For more information, contact us and one of our advisors will be happy to help you.