Should you take a Mortgage Insurance or not?
Don’t put your dependents through financial hardships of a mortgage if something happens to you. Mortgage Insurance can take care of them for you!
Mortgages can put undue stress on spouses and dependents left behind in case of death or disability. Mortgage Protection Insurance gives peace of mind knowing they’re protected when they need it most, which means that you can live life free from worry – knowing they’ll be taken care of no matter what comes your way.
What is mortgage protection insurance?
Mortgage protection insurance is practically a term life insurance plan that is same as the amount of your mortgage loan.
It helps to financially protect your loved ones who might need to take care of your mortgage payments in case something happens to you in the form of death or disability.
Mortgage insurance should not be confused with the CMHC mortgage loan insurance
If your down payment doesn’t meet the 20% threshold for purchasing a home, you’ll need to get mortgage loan insurance from the CMHC (Canadian Mortgage and Housing Corporation). In this case, you will have to pay a premium to your lender to protect them against any default on mortgage for any reason whatsoever.
In case there’s a disability or death, your individual mortgage protection plan will come in to pay off your mortgage and not the mortgage loan insurance that you had purchased from the CMHC.
Who needs mortgage protection insurance?
Anyone who has a mortgage, particularly first-time home buyers should have a mortgage protection insurance.
These homeowners typically lack sufficient capital to cover their mortgages if something happens to them in the form of disability or death.
Where should you get mortgage protection insurance?
When you’re at the bank negotiating your mortgage loan, the bank will most likely offer mortgage protection insurance to protect their money. But before signing anything or making a decision, we recommend doing some comparison shopping with our mortgage protection experts.
Our experts can help you decide what would work best for your situation and might even provide you with additional coverage at a lesser cost.
At Trust Life, we have over 30 years of experience dealing in insurance and investment products for businesses and individuals. Talk to a Trust Life advisor today and get a free mortgage insurance quote. Remember, we work for you and only you!