MORTGAGE INSURANCE

Whether you are purchasing a new home or redoing your mortgage terms, there is a lot to think about. You could be looking for the best mortgage rates or perhaps comparing paint colours to freshen up your home. It’s good to know that you also have choices when it comes to protecting your mortgage, your family and finances from unexpected events that may occur.

As you probably already know that you will need insurance coverage, it is very important to understand the different types of coverage and policies that are available in today’s marketplace.

Homeowner’s Insurance and Mortgage Insurance are not the same

  • Homeowner’s Insurance (property/home insurance) – this coverage helps protect your home from threats such as fire, water damage, accidents and theft. It is required to have if you have a mortgage
  • Mortgage Insurance – this coverage helps protect cover your mortgage payments if you become seriously ill or pass away prematurely.

Types of Mortgage Insurance

  • Critical Illness Insurance – if you are diagnosed with a critical illness, you will receive a tax free, lump sum payout to spend as you wish (cover medical expenses, mortgage payments, time off work, etc.)
  • Term Life Insurance – if you pass away unexpedectly, your beneficiaries will receive a tax free, lump sum payout to spend as they wish (pay off mortgage or any other debt, unexpected expenses, funeral costs, etc.)

Differences Between Mortgage Insurance Policies

When you apply for a mortgage, you will most likely be given the option to apply for mortgage protection insurance from the bank or your mortgage broker (sometimes referred to as MPP underwritten by Manulife). Before you finalize your mortgage, please read below to see how different the insurance coverage’s offered from a bank is compared to having your own individual insurance policies that we offer.

Keep in mind that if you are paying for insurance elsewhere, you can always replace it. We can usually reduce your costs. Contact us if you have any questions.

Insurance through a mortgage lender / broker
Only the individual(s) listed on the mortgage

Insurance offered from us
You, your partner and your children – you can protect your entire family, even those who are not responsible for paying your mortgage

Insurance through a mortgage lender / broker
Only the remaining balance of your mortgage (not even the initial amount).

Insurance offered from us
You choose the amount. In addition to your mortgage debt, you can cover your line of credit, credit cards, auto loans, or even provide additional monies for your survivors to maintain their standard of living.

Insurance through a mortgage lender / broker
The mortgage lender is the beneficiary of the policy

Insurance offered from us
You and your family have the ability to choose who gets the insurance benefit and how it is used. You could pay off the balance of your mortgage or a portion of it. You could use it for medical expenses, other debt, your children’s education or keep it in savings to supplement your income.

Insurance through a mortgage lender / broker
You may possibly lose your coverage and might need to reapply

Insurance offered from us
Your coverage is not affected unless you decide you want to make changes to it. This is because your policy is not tied to your mortgage and can stay with you if you switch mortgage lenders, move, refinance, etc.

Insurance through a mortgage lender / broker
Your coverage is no longer in effect and you lose all premiums paid

Insurance offered from us
Depending on the type of policy that you have, you may be eligible to receive some of the money that you have paid back. Please consult with us for more information.

Insurance through a mortgage lender / broker
You are not permitted to do so

Insurance offered from us
You have access to a wide variety of different policy options and have the flexibility to change the type of policy and coverage amount that you have. You can also switch from a term policy to a permanent plan

ACCESS TO OVER 20 INSURERS

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