A type of insurance designed specifically to repay any outstanding mortgage debt in the event of homeowner death or long-term disability. It is No doubt a Protection of Your home and your family.
As you begin making choices about your new home, from finding the best mortgage rates to choosing your colour scheme, appliances and furniture, it’s good to know you also have choices when it comes to protecting your mortgage and your family’s finances from the unexpected.
Although mortgage insurance protects the interest of lenders, it is purchased by the borrower. Under mortgage life insurance the mortgage amount of term policies does not decline over time. Under bank mortgage insurance, the mortgage amount continues to decline.
Important Things to consider
|Mortgage Creditor Insurance||Term life insurance|
|Who is Covered||Only the individuals on the mortgage.||You, your partner and children , even those who are not responsible for paying your mortgage.|
|Under writing||Post Under writing||Pre underwriting|
|Beneficiaries||The mortgage lender is automatically the beneficiary.||Named Beneficiary in policy|
|Amount of Continuing Coverage||The coverage amount decreases as the mortgage balance decreases. When the mortgage is paid off, the coverage ends.||The amount of coverage you have stays the same for as long as you own your policy – Regardless of your change in health or mortgage balance|
|Can i switch my mortgage lender?||You may lose the coverage and might need to reapply.||Your coverage stays the same – unless you decide to change it. Since your coverage is not tied to your mortgage, you can carry it with you if you move again.|
|Can I cancel my insurance?||You lose all the money you paid for the coverage.||Depending on your insurance, you may get some of the money back that you’ve paid in premiums*.|
|Can i change my term policy||You can’t.||Yes depending on type of insurance policy, you may convert term policy in to permanent solutions|