Mortgage Insurance
Mortgage Insurance

Mortgage Insurance

You've just bought your new home with your brand new mortgage. Now it's time to protect that investment. Your mortgage dealer will probably offer you mortgage insurance through the bank, and before you accept, consider this:

  1. As you pay down your mortgage, the benefit associated with your mortgage insurance policy will also decrease.
  2. The bank will be the beneficiary on your mortgage insurance.
  3. The insurance may not be transferable if you decide to refinance your mortgage with another lending institution.

Alternatives

Alternatively, you can purchase a term life insurance policy for the amount of your mortgage. It will usually be less expensive than the mortgage insurance offered through your bank and has the following benefits:

  1. The death benefit remains the same even as you pay down your mortgage. Should something happen to you, there will be more money than needed to pay off the mortgage.
  2. You can name your own beneficiary. That way, he/she can decide whether to pay the mortgage off completely or continue making monthly payments and use the rest of the death benefit at their own discretion.
  3. The insurance does not lie with your mortgage dealer, and so it will still protect you if you decide to refinance with another institution.

For even greater benefits, you can purchase a permanent insurance policy to cover your mortgage and it will grow tax-deferred cash value. For more information please contact us to arrange an appointment.