Mortgage Insurance

To protect a mortgage, homeowners have many options: mortgage insurance provided by a financial institution, or mortgage protection using life insurance and critical illness insurance provided by an insurance company. Mortgage insurance works by paying off the outstanding principal balance of your mortgage should the policyholder die, have an accident or suffer a terminal illness, up to a specified maximum amount. Mortgage protection, on the other hand, uses a combination of insurance policies to protect them: Term life insurance covers for a set period of time — such as 10, 15, 20 or 30 years — and can be suitable for homeowners looking for low-cost insurance. While the premium may be low for the initially, the cost will increase when the time comes to renew. Permanent life insurance can be more expensive initially, but provides coverage for life. Premiums can either be guaranteed or variable, depending on the type of plan chosen. Critical illness insurance provides a lump-sum payment that can be used for medical expenses or to pay off a mortgage should policyholder be diagnosed with a serious illness that's covered under the policy (if they meet the other policy conditions) — how the benefit is flexible

Each type of mortgage insurance has both pros and cons and we can help you sort through all the complexities to help understand what product best suits your and your family’s needs