Mortgage Insurance - Everything You Need To Know
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Mortgage life insurance is a type of coverage that pays off your mortgage if you pass away before you’ve finished paying it off. It’s designed to give you, and your family, peace of mind when making a long-term commitment like taking out a mortgage.
How does mortgage life insurance work?
Usually, the policyholder pays an annual premium to the insurance company, which in turn provides insurance coverage for the entire mortgage term. If the insured passes away while they still owe money on their mortgage, their outstanding balance will be paid in full by the insurer. In addition to providing financial security and peace of mind for borrowers and their families, this can also prevent surviving family members from having to assume responsibility for an unpaid mortgage balance.
Am I eligible for mortgage life insurance?
Generally speaking, mortgage life insurance is available to anyone who has taken out a loan secured by real estate or other property. To qualify for coverage, borrowers must generally be of good health and between 18 and 65 years old. It’s important to note that some insurers may have stricter eligibility requirements than others so make sure to do your research beforehand.
Mortgage Insurance vs Life Insurance
Mortgage Insurance and life insurance are not the same; mortgage will only cover the outstanding balance of your home loan in case of death during the loan repayment period. Traditional life insurance provides broader protection such as income replacement or covering expenses associated with end-of-life arrangements.
Depending on your needs and situation you may decide that both types of coverages are necessary but make sure you compare products from different providers carefully before committing to any policy.
Mortgage Life Insurance Providers in Canada
When choosing a provider for your mortgage life insurance policy it’s important to compare quotes from multiple companies in order to find the best deal possible. Some of the most well known providers of Mortgage Life Insurance policies in Canada include Aviva Canada, Sun Life Financial, Manulife Financial Corporation, RBC Insurance and Empire Life Insurance Company among many others.