Mortgage Insurance Companies Near Me – Term life insurance can give you the same protection as mortgage life insurance, with more flexibility and lower cost. Let’s get into the reasons why it is the best choice for many Canadian families.
Both mortgage insurance and life insurance can protect your spouse and children in the unlikely event that you die. Here are the main differences between these two types of insurance.
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“With mortgage life insurance, the death benefit is paid to the bank and your family never sees the money.”
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Mortgage life insurance lasts as long as you have the remaining balance on the mortgage. Once paid, the insurance ends.
On the other hand, term life insurance has a flexible term. If your amortization period is 20 years, for example, you can get a 20-year policy that covers you for that time.
In other words, it depends. Mortgage insurance lasts as long as you pay off your home (20 to 30 years), while you can choose how long your life insurance should last.
Both mortgage insurance and life insurance cover different things. While they both provide a benefit in the unlikely event that you die, there are some important differences.
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Mortgage life insurance can only be used to pay off your mortgage. When you pay off your mortgage, your death benefit decreases, but your premium stays the same.
Your mortgage life insurance benefit amount will be equal to the remaining balance of your mortgage, meaning it will decrease over time as you pay it off.
Term life insurance can be used according to the needs of the family; It can cover your mortgage balance, help with funeral expenses, pay for private school, handle medical expenses or go toward a retirement fund for your spouse.
Life insurance allows your family to spend the money however they want. For example, they can choose to pay off the mortgage or use the money for a child’s college education. This gives your family the flexibility to spend money in the way that makes the most sense.
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Combining flexibility and affordability to offer some of the most competitive rates in Canada, making life insurance affordable and accessible to everyone across the country.
Get a non-binding offer and start your application in less time than it takes to warm up leftovers.
How much mortgage insurance costs depends on your age and how much money is being paid on your mortgage.
The older you are, the more expensive your premiums will be. The same applies to the mortgage amount. The more you borrow, the more they charge you for the premium.
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Mortgage life insurance premiums are not written, which means they do not take your individual risk into account. So even if you are a healthy person with no high risk appetite, you will probably pay more for insurance if you choose mortgage insurance.
An important note about mortgage insurance costs: They stay the same regardless of the amount of your mortgage balance. So you don’t pay less when you pay off the mortgage.
Unlike mortgage life insurance, life insurance is purchased. The insurance company will assess your individual risk when setting the premium. Provided you are not a smoker or a skydiver, your premium will cost less than the “one size fits all” rates used with mortgage insurance.
When you buy a life insurance policy, the premium will remain the same throughout the term and so will the death benefit. The benefit amount from life insurance does not change during the life of your policy.
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This differs from mortgage insurance, where the premium remains the same for the term of the mortgage, but the interest is reduced.
Half of parents who don’t have life insurance don’t buy it because they think it’s too expensive, which is an understandable concern. However, parents forge a million financial obligations.
But there is a perception that life insurance costs more than it actually does. In it, we have reduced the unnecessary steps and costs you get with traditional insurance companies to offer the most affordable product with the same life insurance coverage in Canada.
With expenses like childcare, bills and your future to consider, you want to avoid overspending on insurance.
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Life insurance is important and a worthwhile investment because it can help your family. That said, you don’t want to pay more for your coverage. Here’s an overview of how mortgage insurance and life insurance costs are determined.
Take a look at the graph below. It becomes very clear that the value of mortgage insurance decreases over time. Not much, is it?
“The selling point of mortgage insurance is that it’s easy to get,” Laura says. “This is because the policy is not based on a health assessment or an assessment of your individual risk.”
The downside of this approach? A life insurance company assumes that everyone has the same risk (high) and charges premiums accordingly.
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Also, you may not need to undergo a medical examination. Most of our eligible applicants do not require further medical follow-up.
Of course, some people have to undergo a medical examination before approval, but we make it practical, quick and easy. And we cover all costs so you don’t have to.
Understandably, some people want to avoid the medical examination, but it can save you big changes during the policy period.
It’s common to transfer your mortgage from one company to another when your term expires, so it’s important to remember that mortgage insurance is not transferable.
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You must purchase new mortgage life insurance that is associated with your new mortgage. And since you are older, the prices are likely to be higher.
In contrast, because life insurance is not linked to your mortgage, it is not affected when you change mortgage providers.
It’s a good idea to have a financial safety net that pays off your mortgage if you die. However, it does not require mortgage insurance. For many families, life insurance can meet this need and is the best option. Term policies are very affordable and are paid directly to the beneficiaries, who can use the money for mortgage or other needs as they wish.
For some people, an existing medical condition can make it difficult to get life insurance. If this is your case, mortgage life insurance may make sense.
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Because insurance companies generally do not do a detailed health assessment for mortgage insurance, you are more likely to be approved.
If your health history prevents you from protecting your family with life insurance, mortgage life insurance can be a good alternative to whole life insurance.
Kelly and Adam are concerned about the size of their mortgage, especially if something happens to one of them. As it stands, they both need income from the business to make monthly payments and provide for their nets.
Option 1: Purchase mortgage life insurance sold through your financial institution. Your premium will easily be added to your mortgage payments. The downside is that when they pay off the mortgage in future years, the premium will remain the same, even though the amount paid to pay off the mortgage is reduced.
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Option 2: Buy a 20-year life insurance policy that covers the mortgage for the amortization period. If something happens to one of them during this time and the mortgage is mostly paid off, they can use the extra money to fund their two children’s education.
Both Kelly and Adam are healthy and do not have high-risk hobbies. Term life insurance premiums will be lower than mortgage life insurance premiums, so it’s a no-brainer.
When they realize they don’t need mortgage life insurance, they don’t tell the bank and buy life insurance. Their premiums are just under $30 per month, about the same as they would spend on dining out.
See for yourself how affordable life insurance can be. It only takes a few minutes to get a non-binding offer!
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If you have a mortgage and a young family, it’s a good idea to have some coverage for your mortgage.
Because of the flexibility of life insurance, it is the best move for many Canadian home-owning families.
“With mortgage life insurance, your premium stays the same, while the interest paid decreases as you pay off your mortgage,” says Laura. Laura says.
Generally, you don’t need mortgage insurance if you have traditional life insurance. When deciding how much coverage you need, you’ll usually include your most important expenses in the calculation, and that might be your mortgage.
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And while there’s nothing stopping you from having two policies, paying two monthly premiums can be expensive and unnecessary.
Mortgage insurance pays the remainder of your mortgage if you die. So in that sense it gives the benefit of death. But the money doesn’t go to your family or beneficiaries. Instead, it goes straight to the bank
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