Safeguard your Home, choose life insurance, No Debt should outlive the person who created it.

Safeguard your Home, choose life insurance

No Debt should outlive the person who created it.

Buying a house can be the single biggest decision and purchase you will ever make. Therefore, it makes logical sense to purchase life insurance to protect that investment.

Life insurance is purchased for three reasons:

  • To retire Debt such as your mortgage
  • Replace the lost of a family income
  • Protect your assets against Capital Gains taxes and final expenses

Therefore, as a homeowner, it is important to understand the differences between mortgage life insurance offered through your lender, and individual life insurance offered by insurance

companies. Individual life insurance provides greater flexibility; protect multiple needs, and offers more control for you the homeowner when compared to mortgage life insurance offered by the lending institution with comparable pricing. Our objective as independent third party advisor is to educate you on the mortgage insurance product options through a contract feature and cost analysis; as well as advising you on other individual insurance products and services available so you are able to make an informed decision as to your insurance needs.

Comparing Individual Life Insurance and Insurance offered by a Lender

What you need to know:

INDIVIDUAL LIFE INSURANCE OFFERED BY AN INSURER

INDIVIDUAL LIFE INSURANCE OFFERED BY AN INSURER

The Insured is the owner of the policy and is the only one who can make changes to the policy.

The lender is the owner of the policy. Policy terms may be modified by the lender at anytime.

As policy owner, the insured chooses his or her beneficiary.

The lender generally names itself as sole beneficiary.

The insured may choose the death benefit amount, which can remain level despite a decreasing mortgage loan balance.

The death benefit amount is generally decreasing meaning the amount payable corresponds to the mortgage loan’s outstanding balance.

Premiums are leveled and guaranteed at policy issue for the duration of the policy. Age, sex and smoking status are considered to establish the insured premium.

Premiums are not guaranteed and may increase depending on the claim rate of the group covered under the group insurance.

The policy remains in force after the mortgage loan has been paid. The insured may convert his or her term life insurance to a permanent life policy.

Coverage ends once the final mortgage loan payment has been made

Coverage is portable: if the insured changes mortgage lenders, the life insurance covers follows; there is no need to re-qualify.

The insured will lose his or her coverage and have to re-qualify for life insurance should he or she change mortgage lenders

Additional Options for the homeowner

  • Coverage may be extended to cover other loan types under a single policy, not just a mortgage.
  • Option to add a Total Disability Rider to cover mortgage payments in case of total disability; the monthly benefit is payable to the insured.
  • Option to add a Critical illness Rider.