We all aspire for high standards of living for ourselves and our loved ones. However, we may not have a vast source to fund our dreams like a new home, car, and others. So the option available to us would be loans, and many of us use mortgage loans to finance our needs. However, most often, we fail to acknowledge the possibility of unexpected events that may occur in the future. Mortgage Protection Insurance is a life insurance policy designed to pay for the insured person’s mortgage in case they die before paying off the loan. How does Mortgage Protection Insurance work? For people who opt this policy, the death benefit would equal the amount of their original mortgage loan. With time, as...
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Many Canadians aren’t familiar with mortgage protection insurance. Unlike the better-known mortgage insurance, which is purchased from the Canada Mortgage and Housing Corporation (CMHC), mortgage protection insurance is essentially a type of life insurance. It covers the borrower’s mortgage debt if that person dies or becomes disabled. Banks generally try to sell customers this type of insurance when they sign up for a new mortgage. Insurance premiums are then added to the borrower’s monthly mortgage payments. Many personal finance experts advise their clients not to buy mortgage protection insurance if they’re looking to take out a home loan. Listed here are some of...
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What Is Mortgage Protection Insurance? There are various types of Mortgage Protection Insurance Available Mortgage Protection Insurance is a term used to encompass various different types of cover designed to protect borrowers from events which could severely impact upon their ability to maintain mortgage payments. There are different variations but when connected to a mortgage they are all there to provide peace of mind and usually fall in to the following categories: Accident, Sickness, Unemployment (ASU) Cover Life Cover Life cover generally falls into two types – “Whole of Life” or “Term Assurance.” Whole of Life cover is guaranteed to pay out a lump sum on death, whenever it occurs....
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Legal fees, property transfer costs, stamp duties: the costs of buying a home can add up to an unexpected amount, and that’s before most consumers even look at insurance. Insurance is in fact often viewed as a grudge purchase and, while the average homebuyer does realise its inherent value, he is often not equipped to effectively measure intangible risk against tangible cost. Financial consultants are frequently asked whether mortgage protection insurance (MPI) is really necessary if the home buyer has a life insurance policy, and the answer is relatively simple. Insurance is all about understanding your profile, knowing your desired outcomes and covering the right risk element and, if your...
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Your home is a place where memories are created; it is a place to watch children grow, to celebrate life and a place to support each other during times of sorrow. What would you do if you had to sell your home due to a family tragedy such as a job loss, critical illness, total disability or death? The good news is that even though unexpected tragedies do happen, you can protect yourself and your loved ones from financial heartaches. With Group Mortgage Protection (GMP), provided by our partners at CUMIS, you have a safeguard that frees your family from mortgage payments, saving them from financial hardship during life's uncertainties. Life is too short to worry, learn about how this...
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So you took the plunge and bought a house, with a mortgage to match. You may be wondering if you need life insurance to cover the mortgage in case something happens to you before it’s paid off. Without life insurance, your estate will be liable for any outstanding home debt you leave behind. Unless your spouse is loaded, your family would face a sizable financial burden. One way of preventing that outcome is with dedicated Mortgage protection life insurance. Here’s how it works. What Is Mortgage Protection Life Insurance? Mortgage life insurance plans give a tax-free payout that will cover the balance on your home mortgage. Depending on the policy, the payout may occur in the event of your...
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Mortgage Protection & Disability Insurance Protect what YOU love Your home is your haven – the place where you live, breathe, create and play! By protecting your home you protect your family and their lifestyle. With MCAP’s Home Mortgage Protection, you can rest easier knowing that you have taken steps to give security to your family’s future in case of illness, injury or death. When an unexpected loss of life occurs, this protection is tailored to possibly discharge your mortgage and potentially provide your family a mortgage free home. The death of a loved one can have a large financial impact on the whole family. It is important to have peace of mind in knowing that they won’t have...
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What is Mortgage Protection Insurance? Mortgage protection is a specialized life insurance policy that pays off your mortgage for a spouse or partner when you die. Mortgage protection policies are non-medical (no medical exam required) that often include other benefits that cover disability, unemployment, critical illness, and terminal illness. Most people do not have adequate life insurance coverage, and when they die, their loved ones are forced to move out of the home or let the home go into foreclosure shortly after the death of a loved one. Families work their entire lives to purchase, maintain, and improve the most expensive asset they have – their home. And yet, when a loved one...
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What is Mortgage Protection Insurance? Mortgage protection insurance is a form of life insurance that will assist with your outstanding mortgage (or part of it) if you die or become unable to make mortgage repayments because of a disability, an illness, or job loss. It typically runs for the duration of your mortgage and ensures that your mortgage repayments will be paid for if something happens to you. This form of insurance is designed to prevent the bank from losing money on their loan if something happens to you. Compared to most other types of life insurance, however, mortgage protection insurance is often more expensive. It’s also usually offered only by banks and mortgage...
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What is PPI? PPI is insurance that pays out a sum of money to help cover your repayments on your loan, credit card or mortgage (product) in certain life events*. The actual events covered by your policy will depend upon the level of cover that you have purchased and you should always refer to your policy terms and conditions for confirmation of your level of cover and exclusions (what isn’t covered). Halifax no longer sell Payment Protection Insurance (PPI), however if you are interested in purchasing protection for your existing credit agreements then please refer to the Money Advice Service for guidance. Unemployment / Redundancy – if you are in work and become involuntary...
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