Mortgage Insurance is purchased by homeowners in order to pay an outstanding mortgage in the event of an unexpected death. Mortgage insurance is often purchased when arranging a mortgage with a financial institution.
Mortgage insurance can be purchased by the registered borrower, the spouse of the borrower, or the guarantors of the mortgage.
Mortgage insurance is typically structured whereby the death benefit decreases in the same proportion as the outstanding mortgage balance.
We can provide insurance protection that can cover the following specific terms:
- 5 year fixed
- 10 year fixed
- 15 year fixed
- 20 year fixed
- 30 year fixed
- Pick a term – you decide
Benefits of Term Insurance:
- Conversion privilege – change to a permanent plan without additional proof of insurability
- Flexible terms – terms from five to thirty years
- Level death benefits
- Flexibility – beneficiaries determine how death benefits should be allocated
Things to consider prior to purchasing mortgage insurance:
- A needs analysis should be completed by a trained person who specializes in insurance
- Mortgage insurance pays off the mortgage directly
- Other policies allow the beneficiaries to decide how the proceeds should be allocated (education, car loan, other family expenses)
- Financial institutions typically can only offer one product at one price
- Mortgage insurance typically declines in coverage with the mortgage balance
- Mortgage insurance is not transferable
