Mortgage Insurance

Protecting your home and Family with an individual Term Life Insurance Plan

Most lending institutions offer mortgage life insurance as part of their mortgage packaging. But look carefully before you sign on the dotted line. You could find yourself locked into insurance that does more to protect your lender than you.

You've worked hard to find just the right home and right mortgage. Shouldn't you take the time to find just the right mortgage life insurance protection for you and your family?

You name the beneficiary

Is private mortgage insurance appropriate for you? Would you prefer than your named beneficiary receive the funds in the event of your death or do you want your financial institute to receive the funds and pay off your mortgage? Private insurance has many benefits including your named beneficiary receiving the funds tax free. Especially if you have a family, the best decision for use of the funds may be to reduce mortgage payment, but also help support the family during their time of adjustment to your death. How would your family pay your on-going bills, like food, heat, or even re-training of your spouse and day-care for minor children?

If you have young children

One of the concerns that parents have, is what will happen to the children if something happens to the parents. A guardian is named for children under 19. The guardian or a trustee may receive the funds in the event of the death of both you and your partner. The funds would be paid tax free to the named person who would be responsible to pay for on-going expenses for the children until they reach the age of 19.

Changes to your insurance

You can change your beneficiary, decrease the face amount of insurance or in the case of term insurance convert to permanent insurance.

You own the policy not your lending institution

You own the policy so if you decide to seek out a different lending institution your private insurance stays in place and you do not have to re-qualify medically.

Are you covered?

If you think you have mortgage insurance - watch this, then call us for a consultation. CBC Marketplace investigative reporting aired a documentary on February 6, 2008. This documentary illustrates the need to use a professional insurance broker for all your insurance needs. "If you have a mortgage on your home...It's meant to offer peace of mind..the reality fails short of that.." www.cbc.ca/marketplace/in_denial/

Read the following to see if you may benefit from private mortgage life insurance.