A mortgage is the single largest debt most Canadians have which makes mortgage insurance an important responsibility. In life we can never take for granted that the things and people we love, enjoy, and rely on today will always be around. It is important to protect yourself and your family against unforeseen challenges with the proper type and amount of insurance. Losing your home is the last thing you want to happen should you lose your partner tragically, or should one of you become seriously ill.
Protecting your mortgage with the proper Life Insurance and/or Critical Illness Insurance plan, will allow you to feel confident that no matter what life throws your way, you will have the proper coverage in place to make sure that your mortgage payment will be taken care of.
A personal life insurance plan is the smartest way to protect your mortgage. See below how a personal life insurance plan provides you with smarter choices, increased flexibility, and enhanced protection.
Life insurance provides you with better coverage options and more choices that add up to greater control over your mortgage protection. We can work with you to customize a plan that benefits you.
Mortgage Insurance through your Bank/Lender is NOT your best option, watch this video to find out more:
http://www.cbc.ca/marketplace/in_denial/
DID YOU KNOW:
1. With your bank's insurance the total amount of coverage is actually DECREASING, while your monthly premium payment remains the same.
2. With your bank's insurance the policy may not be underwritten until the time of claim, which means that although you are paying for insurance - you are not actually insured and may not even qualify.
3. With your bank's insurance upon a claim, the value of the coverage goes straight back to the Bank. But what about all of your other continuing expenses: food, car, children (sports, education, entertainment), in addition to all of your other bills? You now have a loss of income, but you still need to keep paying all of your regular daily living expenses and in the end you may still end up losing your home.
4. The monthly premium of a Personal Life Insurance Plan is often 30% less than regular Mortgage Insurance.
BANK MORTGAGE INSURANCE VS PERSONAL LIFE INSURANCE
The bank owns the policy
|
You own the policy
|
The insurance amount can
only be the exact amount
of the mortgage
|
You may select any amount of coverage
|
The bank is the beneficiary
|
You choose the beneficiary
|
Outstanding balance of the
mortgage is paid upon the
death of the insured
|
Proceeds are paid to the beneficiary
upon the death of the insured and
can be used as they choose
|
Amount of coverage decreases as
mortgage decreases, although
premiums remain the same
|
Coverage remains constant and can be
increased or decreased as you choose
the premium will reflect the new
coverage amount
|
You need to re-qualify for
insurance if your mortgage is
re-financed or you change lenders.
Your premium will be based on
your new age
|
You never have to re-qualify for coverage
|
Coverage terminates when
your mortgage is paid off
|
Coverage remains in place even after
your mortgage is paid off
|
Coverage is NOT convertible
to permanent insurance
|
Coverage IS convertible to permanent
insurance
|
If both insureds die together, only
the mortgage balance is paid off
|
If both insureds die together, the benefit
is doubled
|
Generally no distinction is made
between smokers and
non-smokers and premiums
are the same
|
Your rates are based on your health,
if you lead a healthy lifestyle, you
will be rewarded with considerably
lower premiums
|