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Mortgage Life Insurance

Whether you are buying a home or renewing your existing mortgage, there is something you need to consider. What happens to your dreams if you should die? Would your family be able to stay in their home?

 

You’ve found the right home…now find the right mortgage life insurance protection.

Most lending institutions offer mortgage life insurance as part of their mortgage packaging, but you should 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 have worked hard to find the right home. Shouldn’t you take the time to find just the right mortgage life insurance protection for you and your family?

 

Protect your home. Not your lender.

A personal life insurance policy available through Specialty Wealth & Financial doesn’t insure your mortgage. It insures you. After all, you are the one making those mortgage payments. Through a personal life insurance policy, you can plan to meet more of your family’s needs in the event of death — including staying in your dream home. We offer life insurance products that can be customized to meet all your financial security planning goals. Here is a closer look at how a personal life insurance policy compares to mortgage insurance offered by most lending institutions.

 

It’s about…

With most lending institutions’ mortgage life insurance…

With personal life insurance through Specialty Wealth & Financial…

…having control

  • Your lender owns the policy and if you find a better mortgage rate at another lending institution, you may have to re-qualify medically for the life insurance protection. Your mortgage life insurance cannot be moved to another institution.
  • You own the policy, not your lender. You have the freedom to switch your mortgage to another lending institution without jeopardizing your life insurance coverage.
  • Your lender automatically pays off the mortgage if you die. Your beneficiary has no choice about how to use the funds at a time when funds may be required the most.
  • Your beneficiaries can choose how to use the funds–to pay off the mortgage, provide a monthly income or take care of a more immediate need. It is their choice, not the lender’s choice.
  • If you make additional payments to your mortgage, your mortgage life insurance coverage decreases. So the harder you work to pay off your mortgage, the faster your mortgage life insurance decreases.
  • Your coverage isn’t reduced by a decline in your mortgage balance.

 

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* Available through Specialty Wealth & Financial
** Most lending institutions

Note: With the mortgage life insurance available through most lending institutions, as your mortgage is paid down coverage decreases. However, with personal life insurance coverage available through Specialty Wealth & Financial, as your mortgage is paid down coverage doesn’t decrease.

 

It’s about…

With most lending institutions’ mortgage life insurance…

With personal life insurance through Specialty Wealth & Financial…

…being covered

  • Generally, mortgage life insurance from most lending institutions is non-convertible term insurance–there are no cash values, no premium flexibility or ability to move to a permanent life insurance plan if your needs change.
  • You select the plan that meets your financial security goals. Our term insurance products are fully convertible to any permanent plan, so if your health changes and you find it difficult to get life insurance, you can keep the full death benefit you already have and covert your insurance to a permanent insurance policy without having to re-qualify medically.
  • Insurance from lenders usually covers the exact amount of your mortgage, and your coverage decreases as the mortgage is paid down. This means you have no coverage when the mortgage is paid off. (See graph)
  • We will help you determine the amount of coverage you need and your coverage doesn’t decrease as the mortgage is paid down. This means additional funds could be available at a time when your family may need them the most.
  • Mortgage life insurance from lending institutions may leave you with fewer options if your health changes or you become uninsurable. Your options for renewing or re-mortgaging with a different lending institution may be restricted in order to retain mortgage life insurance.
  • Permanent life insurance products can give you access to cash values that can be used to meet many needs over your lifetime.
  • Many don’t allow you to customize the coverage with options or features to better meet your financial security goals.
  • Your policy can be customized with additional options and features that you select such as having your life insurance premiums waived if you become disabled.

 

 

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