mortgage insurance Mortgage Insurance

Mortgage Insurance protects you from the inability to pay your mortgage payments in the event of disability, illness or death. A simple way to think of mortgage insurance is a life or health insurance that has a declining benefit that coincides with the rate in with you pay off your debts. There are 3 types of protection that you may choose when looking at mortgage insurance in Canada. Also know as creditor insurance because the mortgagee is often named as beneficiary, this particular insurance may be purchased privately from other financial institutions other than the financing institution. Private credit insurance does allow for the policy owner to name a beneficiary but is still tied to the credit in that fact that it is specifically named to cover certain a debt. Mortgage Insurance is commonly referred to a group insurance or non medical insurance, meaning that there is no medical underwriting prior to a policy being issued. This has and continues to be a controversial matter in consumer policy due to the nature of guarantees within non medical policies. Mortgage Insurance is available as fully underwritten insurance on the other hand as a privately purchased policies. Rest assure that we can compete price bases with your current mortgage insurance while dramatically improving your overall financial risk management.

Types of mortgage insurance coverage:

  • Mortgage Life Insurance
  • Mortgage Disability Insurance
  • Mortgage Critical Illness Insurance

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 Term Life Insurance

Given the rising costs of living, fewer people are investing in life insurance. Sadly, this creates a major risk for all those who are reliant upon household breadwinners. If the head of the household should pass away, these individuals stand to lose everything. The good news is that term life insurance is far more affordable than whole life plans. For a fraction of what a whole life plan costs, you can bind sufficient coverage for taking care of your dependents until they are able to care for themselves.

Preparing For The Unexpected

Term life insurance allows consumers to bind policies for a specific amount of time, whether this is ten, twenty or even thirty years. They can then pay a low monthly premium to ensure that their loved ones will receive sufficient funds for living comfortably, should they pass away. While these preparations can be difficult to consider, they help people to remain reliable providers for their children and spouses, in spite of things that lie outside of their control.

Important Financial Considerations

Parents often bind term life insurance with college in mind. These covers help kids to obtain the funds they need for securing higher educations, even if their parents pass away. Those who wish to maintain a stable home for their families after death can purchase policies that will cover the remainder of their mortgage. Efforts like these ensure that your loved ones will always have the safety of an assured residence and proper access to a stable future.

 

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Permanent Life Insurance

Permanent life insurance has a distinguishing factor of providing an investment element. This element is money that is put into savings within the policy that can be used or borrowed against during the life of the agreement. This savings is known as the cash value that the insured can use as long as they remain current with the policy. The money accrued throughout the terms of the agreement can be used or paid out at the end of the policy. Life insurance is usually attained to protect the family of the insured in the event of death. Permanent life insurance provides this protection for an entire lifetime.

Universal life insurance is a form of permanent life insurance with some added flexibility. This type of policy allows for any excess premium payments to be applied to the overall cash value of the policy. The excess money is credited each month with interest that is determined by the insurer. The insured has the flexibility to use the interest accrued to help pay the policy premium when needed. At the same time, the policy is debited each month for the cost of insurance charge. This charge would include policy administrative fees or any other costs taken from the cash value.

Whole life insurance is another form of permanent life insurance and is considered more of a turnkey product. It also has a cash surrender portion but the management of this fund is done internally by the insurance company. Returns on a typical whole life policy are usually seen as dividends which are paid out to whole life policy deriving from excess profits on the insurance companies book of whole life insurance business.

 

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