![]() Mortgage life insurance is much easier to qualify for than individual life insurance, and usually your mortgage lender will ask a few questions before you qualify. No flexibility in what the payout can be used for (the money goes directly to your mortgage).ĭepending on your situation, mortgage life insurance may be something that fits your needs or may be an extra cost not worth the price.Can cancel your policy at any time, and most lenders will give you a refund if you cancel in your first 30 days.Higher premiums over-time compared to individual term-life insurance.Convenient monthly payments through your existing mortgage.Benefits and Drawbacks of Mortgage Life Insurance ✔ Pros Lowest rates are for high-ratio mortgages (LTV > 80%). For example, if you have a mortgage of $300,000, your monthly premium to insure the full $300,000 mortgage will likely be twice the cost of insuring your mortgage for only $150,000. Monthly premiums are directly influenced by how much you choose to be covered for. Some financial institutions even offer home buyers the ability to put more than 1 person on their mortgage life insurance policy, meaning you might be able to add a co-borrower, guarantor, or mortgage endorser to your policy. You will usually get your first 30 days of coverage risk-free, meaning during this period you can cancel your policy and receive your money back. ![]() Coverage is offered either directly through your mortgage lender or an affiliated life insurance company when you purchase a home and get a mortgage. Especially if you are a first time home buyer with a large mortgage, mortgage life insurance may provide you the peace of mind you need to sleep better at night, knowing that your family will be able to stay in your home in the event of a tragedy. ![]() Mortgages are loans secured by your home, meaning the bank can take your property if you stop making payments. Mortgage life insurance is an insurance policy that will cover all or part of your mortgage amount in the event of your passing. It covers all or part of your mortgage amount in the event of your passing. Mortgage life insurance shouldn’t be confused with home insurance in Canada. ![]()
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