Life insurance for your mortgage
Congratulations, you’ve just bought a new home. It’s a huge financial decision and you have a lot at stake, so it’s worth taking steps to protect your investment and your family.
Mortgage Life Insurance is commonly offered to new homeowners who may be concerned that an unexpected death or illness could leave their loved ones with a large mortgage. It’s designed to pay off or pay down the mortgage if you die so your family can stay in your home. The insurance money payable under the coverage is always applied to the mortgage balance.
Personal life insurance can perform a similar function for you. It covers off the same risks of death or illness but isn’t tied to just covering your mortgage. Its flexibility allows your beneficiaries to use the money for whatever purpose they wish. Your family or other beneficiaries could use the proceeds to pay for post-secondary tuition, credit card debt, or other living expenses.
Personal life insurance also gives you more control. It can be purchased for a term that is unrelated to the length of your mortgage. Your personal life insurance policy isn’t linked to your mortgage and won’t end because your mortgage is paid off or you’ve moved it to another financial institution.
Critically, the amount of Mortgage Life Insurance is linked to the declining balance of your mortgage and will go down over time, so you’re stuck paying a fixed premium for insurance coverage that soon covers a shrinking mortgage balance. With personal life insurance, your coverage is guaranteed to stay level. It won’t decrease unless you want it to, and your premiums are also guaranteed and won’t increase if interest rates on your mortgage go up.
Mortgage Life Insurance is offered through a financial institution. For life insurance approvals, Unity is standing by to make the application process as seamless as possible, so you get the best possible insurance coverage for your family. We’ll ask a few questions about your personal medical history and will be able to lock in your coverage in a short period of time.