Mortgage Protection Insurance

When buying a home, there’s a lot to think about. It's good to know you have choices when it comes to not only protecting your mortgage, but your family's finances from the unexpected as well.



Know The Facts

You absolutely require insurance, however it is important to understand the different polices and types of coverage available to you. 

Homeowners Insurance vs Mortgage Insurance

Homeowners Insurance assists to protect your home from physical threats like accidents, fire, water damage, and loss of property from theft. It is a requirement when you have a mortgage.

  • If you cancel, depending on the terms of your insurance policy, you may get some of the money back that you've paid in premiums
  • If you change mortgage lenders, your coverage remains 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.
  • Should you want to change your insurance, you have the flexibility to amend the type and amount of your insurance, or convert to a permanent solution

Mortgage Protection Insurance helps to cover only the balance mortgage payments, in case of serious illness or unexpected death and covers only the individual(s) listed on the mortgage.

  • The mortgage lender is automatically the beneficiary
  • If you switch mortgage lenders you may lose the coverage and might need to reapply
  • Once the mortgage is paid off, the coverage ends
  • If you cancel your insurance, you lose all the money you paid for the coverage
  • You are not allowed to change your insurance


Other Types Of Mortgage Protection Pnsurance

Term life insurance allows you to have affordable, flexible protection that your loved ones may use to pay off your mortgage or cover other expenses if you die unexpectedly. It typically provides coverage which expires at a specific age or year. Premiums are guaranteed for predetermined period of time depending on the plan selected.

Permanent Life Insurance is an affordable lifetime protection plan helping your family prepare for the unexpected allowing you the added benefit of accumulating cash value over time. Permanent insurance costs are usually guaranteed when you first buy the policy.

Participating Life Insurance is a type of permanent life insurance coverage where your policy is eligible to receive dividends and accumulate cash value on a tax-preferred basis. 

Universal Life Insurance is a flexible type of permanent life insurance that combines protection and savings. 

Critical illness insurance allows you to receive a lump-sum payment to spend as you choose on things like medical expenses and mortgage payments so you can focus on recovery should you become seriously ill.