Your mortgage is likely your biggest investment, so is it worth protecting? You bet it is!
Nobody wants to think about it, but in the event of a disability or untimely death, having protection in place is invaluable for yourself, your spouse, and remaining family members. It will greatly ease your minds when beginning to manage the stress and added responsibility of an illness.
Let’s compare two ways protect your biggest asset. Mortgage Life Insurance and Time Life Insurance offer different benefits, and depending on what you are looking for, these are options you will want to consider.
Lender Mortgage Life Insurance (MI) VS Term Life Insurance (TI)
Who benefits from the coverage?
MI: The lender is the beneficiary and will use the insurance to pay off your mortgage.
TI: The policy holder names the beneficiaries, and they are free to use the money as they choose
Does the coverage expire?
MI: The coverage ends when the mortgage is paid off (some lenders have age restrictions)
TI: The policy holder chooses the term
Does this transfer to a new mortgage?
MI: Typically, this is not transferrable. With a new lender, you must resubmit an application.
TI: This type of insurance stays unchanged for the term of the policy
If the policy holder dies, what happens?
MI: The policy will pay off the remainder of the mortgage
TI: The Beneficiary will receive the full amount of the policy to do with as they choose
What if the policy holder is sick?
MI: This will vary, but generally there are options to include disability to cover mortgage payments for a period of time
TI: Disability is not typically included in life insurance. The policy holder must get disability insurance as an independent policy
Do the premiums increase over time?
MI: Generally, the premiums remain unchanged for the term of the policy
TI: Premiums can change at the end of the term based on age or health concerns
The good news is it’s never too late to protect yourself and your family. Do you have questions about how to protect your mortgage? Let’s talk about your options and get the best plan in place for you. Book a time to chat today – ChatwithGail.ca – we would love to connect with you today!