The Difference Between Life Insurance And Mortgage Protection Cover What is life insurance? It’s the catch-all name for a group of products, which pay out financial sums at major life moments such as death, sickness, illness and, in some cases, redundancy and unemployment. The best-known life insurance product is life insurance itself, which pays a tax-free lump sum to the surviving family, or other named beneficiaries, when the policyholder dies. That lump sum can be used for any purpose, from covering general living costs to paying off a mortgage. Life insurance products can cover individuals, couples, family members and even businesses. If you are the policyholder, the monthly...
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A mortgage loan does much more than provide funds to buy property. Home loans make it possible for you and your loved ones to have a place of your own—where you make memories, live comfortably, and potentially build equity. Your home loan is possibly the largest loan you’ll ever take on, so what happens if you die while you still owe money? Payments are still due, so some insurers promote mortgage life insurance as the solution to premature death. Mortgage Life Insurance Mortgage life insurance is an insurance policy specifically designed for homeowners who owe money on a mortgage loan. If the insured individual dies, the policy pays out the remaining loan balance, leaving survivors with...
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What is the difference between mortgage life insurance and personal life insurance? Both types of insurance can be used to help your loved ones pay off the mortgage. The main difference between life insurance and mortgage life insurance is that they are designed with different protection purposes in mind. Mortgage life insurance is a kind of insurance that is designed to pay your mortgage debt in the event of your demise. Having a mortgage life insurance will help you cover the balance of the mortgage, which will ultimately reduce as the mortgage gets paid. On the other hand, personal life insurance isn’t associated with your mortgage. When your home is paid off, the mortgage life...
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Are you gearing up to buy a home? Congratulations! Buying a house is probably the largest purchase you’ll ever make. If you purchase the home with a partner, among the conversations about decorating, landscaping and cable hook-ups, be sure to throw in a weightier topic: life insurance. Why Life Insurance? With suitable life insurance, you or your partner will be able to stay afloat, make mortgage payments and maintain your lifestyle even if one of you is no longer there to provide regular income. Purchasing life insurance is a good way to give your family the freedom to make decisions right for them. Assessing Your Needs If you’re ready to take on the responsibility of a mortgage, consider...
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For most people, a home is likely to be the biggest purchase of their lives, so it is only natural to want to protect it. At Dundas Life, we have you covered, whatever your insurance needs. There are several insurance products that new homebuyers need to know about. However, knowing which mortgage life insurance product is right for you, is not always easy. That is why we have put together this post, in which we will answer your mortgage insurance questions and more. So, let us dive right in. Do you need insurance to get a mortgage in Canada? Yes, you do. Homebuyers will need to buy home insurance if they want a mortgage in Canada. Furthermore, they may need to buy mortgage default...
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Mortgage Protection Insurance in Canada Mortgage life insurance shouldn’t be confused with home insurance in Canada. It covers all or part of your mortgage amount in the event of your passing. Mortgage life insurance is an insurance policy that will cover all or part of your mortgage amount in the event of your passing. Mortgages are loans secured by your home, meaning the bank can take your property if you stop making payments. Especially if you are a first time home buyer with a large mortgage, mortgage life insurance may provide you the peace of mind you need to sleep better at night, knowing that your family will be able to stay in your home in the event of a tragedy. Coverage is...
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You probably heard the pitch when you applied for your mortgage: add mortgage life insurance for just a few extra dollars on your monthly payment. Lenders want you to sign up for this service. But is it mandatory to have mortgage life insurance in Canada? Let’s explore. Is mortgage life insurance mandatory in Canada? Answer: no. Mortgage life insurance is not mandatory in Canada. It protects the bank's loan to you, so if you die, your mortgage is paid. There are better options available to protect your family from financial ruin if you can't make your mortgage payments. Any major life event is an excellent time to explore life insurance. What is mortgage life insurance? Okay, so it’s not...
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Purchasing a home is likely one of the biggest financial decisions many Americans are going to make in their lifetimes – and for investments of this magnitude, it pays to be protected. There are several ways to go about this task. Getting home and contents insurance, for example, gives homeowners protection against worst-case scenarios that may happen to their properties. Another type of coverage, called mortgage protection insurance (MPI), helps homeowners pay out the remainder of their home loans should circumstances render them unable to make monthly repayments. But while the additional protection that MPI provides may seem great to have at first glance, many experts say this kind...
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The decision to take out life insurance is most commonly triggered by a major life event. In this article, we will discuss how a mortgage can affect your needs for life cover, the differences between mortgage protection life cover and a family income benefit, and how they can complement each other. It’s usually at a key moment in our lives that the need for life insurance is heightened – particularly when we take on greater responsibility, such as the costs involved in buying a home or having a child. Something that every mortgage borrower needs to consider is what will happen to their property if they were to pass away. This is especially important if you are buying a home with a loved one...
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Mortgage life insurance: weighing the pros and cons Is mortgage life insurance the best product for your need? If you have a mortgage, it is highly recommended that you provide protection for that mortgage through life insurance. Mortgage Life Insurance is a product that is designed to specifically protect your family from the heavy payments required in a mortgage in the event that you pass away. Since mortgage life insurance is a product specifically designed for the need to cover a mortgage, it has its own benefits and disadvantages. It will do you good to weigh the pros and cons before deciding to get the mortgage protection life cover that you need for your particular situation and...
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