What is mortgage insurance?
Few people know this, but in reality, mortgage insurance is very similar to life insurance. In the event that the insured dies before the end of their mortgage, it provides a sum of money used to repay the remaining balance. This prevents heirs from being burdened with the mortgage debt.
Did you know that?
Mortgage insurance is only offered by financial institutions, and therefore only covers the mortgage loan. This is normal, since your financial institution wants to protect the money it lends you. But mortgage insurance is not mandatory!
By taking out life insurance instead, you benefit from a number of advantages that mortgage insurance does not offer. Life insurance can cover all your debts, in addition to your mortgage. What's more, life insurance offers long-term protection for the insured's family, even after the mortgage is paid off in full.
Contact your AccèsConseil advisor to find out more!
The advantages of choosing life insurance over mortgage insurance
Flexibility
Life insurance is more flexible than mortgage insurance offered by a financial institution. With life insurance, you choose the amount and duration of coverage you need, and you can also choose to name a beneficiary other than your financial institution.
Portability
If you change mortgage lenders, your mortgage insurance will probably have to be replaced, which can be costly and complicated. With life insurance, you can keep your coverage even if you change financial institutions.
Costs
Mortgage insurance offered by financial institutions is generally more expensive than life insurance for equivalent coverage. That means you pay more to get less!
Additional protection
Life insurance offers additional protection for your family on top of the mortgage.