Mortgage Insurance
When you obtain financing from a bank or a lending company for the purchase of your dream home, the mortgage lenders offer you the option to buy mortgage protection insurance. This type of insurance can pay some or all of your outstanding mortgage amount in the event of your death. This solution only provides coverage to pay-off your mortgage and it does not leave any extra money for your family to deal with other financial needs in life. Another alternative that Forever Insure recommends is to purchase a life insurance (either Term or Permanent) and for extra protection, you may add critical illness insurance to your insurance package. This way, your family not only will be able to fully pay off the mortgage debt but use the remaining portion to cover other financial needs of the family when they do not have your support anymore.
Mortgage insurance through a mortgage lender
Life Insurance
Your mortgage insurance only covers some or the entire outstanding principle amount owned on the mortgage to your lender and there will be no money left to cover other family financial needs.
By purchasing a life insurance (either permanent or term), the death benefit will cover not only your mortgage to the bank or lending company but other family financial needs will also be taken care.
Your mortgage debt reduces over time but not your monthly payment of your mortgage insurance
If you stay with the same policy, overtime, your coverage will not decrease and in case of your death, both your home mortgage debt and other financial needs of your family will be covered.
The sole beneficiary of the mortgage insurance is the mortgage lender and upon your death, the outstanding balance on your mortgage will be paid off.
Upon your death, those who have been named as beneficiary in the life insurance policy will receive the whole benefit and then they are the one(s) who can decide how to spend the money based on the family financial priorities and not just paying off the mortgage.
Once the mortgage is fully paid off, you will lose all your benefits.
As long as your pay your premiums, your insurance policy will remain in force.
There is no flexibility in changing your coverage in mortgage insurance
Based on your financial needs, you can always consult a financial advisor for the possibility to upgrade your life insurance policy to meet your needs.
Due to the great variety of conditions and facilities in preparing and using any kinds of insurance, it is recommended that you consult with one of our insurance advisors before making any decision. Our expert team at Forever Insure is always ready to provide the right consultation to you and thus help you make the right choice.
For more information, please contact one of our advisors at Forever Insure for a free consultation.
- 647-518-1390
- info@foreverinsure.ca