When you are approved for a mortgage, your lender will offer to sell you mortgage insurance. That may seem convenient, but before you say yes to mortgage insurance, you should know that you have other options.
Protecting your mortgage with an individually owned term insurance plan offers you and your loved ones better guarantees and greater choice. Quite simply, Life Insurance provides better value, more flexibility – and in most cases at a lower cost. As an insurance advisor with Main Street Wealth in Georgetown, I will explain the considerations to make when choosing your protection…
I pay the premiums, so I would own the policy. Right?
With Life Insurance, you own the policy, and you name your beneficiaries.
With mortgage insurance, you are a part of a group policy owned by the lender. Your lender is the beneficiary.
Is the coverage flexible?
Life insurance has many coverage options and amounts regardless of your mortgage balance. If you renegotiate or pay off your mortgage or sell your home, you can continue your coverage.
With Mortgage Insurance, your lender will only insure the amount of the mortgage. You can’t alter, renew or transfer the policy to another lender. Your coverage ends when you end your relationship with the lender.
Is the coverage guaranteed?
Your premiums and benefits are guaranteed with Life Insurance. Only you can cancel or make changes to the policy.
With Mortgage Insurance, your premiums and benefits are not guaranteed. The lender can change or cancel the policy at any time.
These are strong factors in making your decision. The price for Life Insurance is typically less expensive than Mortgage Insurance and you can explore your life insurance options by visiting our website - mainstreetwealth.ca