If you’re like most people, your home is your most valuable asset. You’ll want to ensure that you protect it, especially if you’re the principal breadwinner who’s paying down a mortgage. After all, if something were to happen to you, you’d want to ensure that your family isn’t left with a huge mortgage.
Happily, you have options. You can opt for Mortgage Insurance; it’s available when you secure your mortgage through a bank or credit union. Another option is Life Insurance; a product like Canada Protection Plan’s 25 Year Decreasing Term Life Insurance can be a great choice for people with mortgages, as you’ll see below. Whichever you choose, your home (and mortgage) will be protected. But you should know some key differences between options before committing one way or the other:
Cost
Premiums on Mortgage Insurance are typically higher than on Decreasing 25 Year Term Life Insurance, and these premiums can go up if you renew, sell your home or switch lenders to secure a lower mortgage rate.
If affordable coverage is your primary concern, consider the lower premiums offered by a Decreasing 25 Year Term Life Insurance plan; this is an ideal way to protect your mortgage, because coverage can offer protection for the length of your mortgage. If you’re young and healthy — as many first time homebuyers tend to be — this type of plan can provide coverage up to $500,000 for applicants aged 18-55 who qualify.
Portability
Who says you can’t take it with you? Well, with some financial institutions, you can’t; you’ll need to apply for new Mortgage Insurance if you renew, switch lenders, or move. Term Life Insurance on the other hand, stays with you wherever you go.
Payout Flexibility
With both Mortgage Insurance and Decreasing 25 Year Term Insurance, the payout decreases over time. However with Life Insurance, your beneficiaries can use the end payout as they wish; funds can be used towards funeral expenses, children’s education, income replacement or other debts. Mortgage Insurance on the other hand, can only be used to pay off your mortgage.
Decreasing 25 Term Life Insurance is just one of the many choices of Life Insurance available. A licensed Insurance Advisor can help determine which coverage is best suited to protect an important asset such as your home. To find out more, contact Canada Protection Plan or one of 25,000+ Insurance Advisors. Turning your home sweet home into home protected home is as simple as that.
Canada Protection Plan is Canada’s leading name in Simplified Issue and No Medical Life Insurance. Call 1-877-851-9090 for your free, no obligation quote.
