Mortgage Protection is designed to help protect you and your family by paying off your mortgage in the event of your death and ensures your regular payments are made if you become disabled. Buying a home is one of the most important investments you will ever make. It symbolizes a secure future and stability. It is also a major financial commitment. A mortgage is something you need to honour, regardless of your life circumstances. Which means you need to be prepared for the unexpected. You've invested a lot in your home. Why not make sure it's protected?
Quite simply, Term Insurance purchased through a life insurance company is a fundamentally better option than choosing a Bank's Mortgage Insurance. You have the option of choosing a 10,15, 20 and 30 year term payments.
Why is Term Insurance better and much cheaper than Bank Mortgage Insurance?
- If you are quick paying your Mortgage Insurance Policy in Toronto , your bank insurance premium will be relatively high for a rapidly reducing amount of insurance. Individual insurance policies maintain the same coverage. You can reduce the coverage and cost at any time as your mortgage reduces.
- If you have a low interest rate on your mortgage, having the bank automatically pay off the mortgage may not be the best choice.
- Once approved, the insurance cannot be cancelled should your health become a problem. The bank can cancel your insurance each time you renew your mortgage.
- If you renew your mortgage through a different bank or credit union to take advantage of a lower interest rate, you can't take your bank mortgage insurance with you; you have to re-apply at an older more expensive age bracket.
- Families get twice the coverage for the same price. That is, if you both die there are two policies that pay off towards your children's benefit.
- You own the Insurance Plan and retain control of it.
- Your premium and coverage will not change for the term period you select. The bank's premium will change when you renew the mortgage - usually every one to five years.
- If you have other insurance needs you can combine all your insurance needs and get a lower rate with your own plan.
- If you are insuring mortgages on rental properties, you can also get bulk rates, transfer coverage to new properties, and eventually use the proceeds of the plan to pay capital gains taxes.
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