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Personal Life Versus Mortgage Life Insurance

Protecting your home and family

Personal Life Insurance Versus Mortgage Life Insurance | Protect Your Family, Not Your LenderYou’ve found the right home and the right mortgage, now find the right mortgage life insurance protection

Most lending institutions offer mortgage life insurance as part of their mortgage packaging. But look carefully before you sign on the dotted line. You could find yourself locked into insurance that does more to protect your lender than you.

You’ve worked hard to find just the right home. Shouldn’t you take the time to find just the right mortgage life insurance protection for you and your family?

Personal Term Life Insurance Versus Mortgage Life Insurance | Protect Your Family Not Your LenderProtect your home Not your lender

A personal life insurance policy doesn’t insure your mortgage. It insures you. After all, you’re the one making those mortgage payments.

Through a personal life insurance policy, you can plan to meet more of your family’s needs in the event of death – including staying in your dream home.

Brendon Laing, your financial security advisor at Freedom 55 Financial can show you how a personal life insurance policy can be customized to fit into your financial security plans.

Comparing Mortgage Life Insurance Vs. Personal Life Insurance

With mortgage life insurance
With personal life insurance
Generally, mortgage life insurance from most lending institutions is non-convertible term insurance – there are no cash values, no premium flexibility or ability to move to a permanent life insurance policy if your needs change. You select the plan that meets your financial security goals. Our term insurance products are fully convertible to permanent policies. So in the future, if your health changes and you find it difficult to get life insurance, you can keep the full death benefit you already have and convert to a permanent insurance policy, without having to re-qualify medically.
Insurance from lenders usually covers the exact amount of your mortgage. Your coverage decreases as the mortgage is paid down.

This means you have no coverage when the mortgage is paid off.

Your financial security advisor helps you determine the amount of coverage you need, and your coverage doesn’t decrease as the mortgage is paid down.

This means additional funds can be available at a time when your family may need them the most. You can reduce the face amount when you want. Or if you need the protection for other purposes, you can keep the insurance.

Consistent Coverage With Personal Life Insurance

Is Personal Life Insurance Better Than Mortgage Life Insurance? Consistent Coverage

With mortgage life insurance
With personal life insurance
It’s about being covered
Mortgage life insurance from lending institutions may leave you with fewer options if your health changes or you become uninsurable. Your options for renewing or re-mortgaging with a different lending institution may be restricted in order to retain your mortgage life insurance. Your policy can be customized with additional options and features that you select, such as having your life insurance premiums waived if you become disabled.
Many don’t allow you to customize the coverage with options or features to better meet your financial security goals. Depending on the life insurance product you choose, you can have access to cash values that can be used to meet many needs over your lifetime.
It’s about having control
Your lender owns the policy and if you find a better mortgage rate at another lending institution, you may have to re-qualify medically for the life insurance protection. Your mortgage life insurance cannot be moved to another institution. You own the policy, not your lender. You have the freedom to switch your mortgage to another lending institution without jeopardizing your life insurance coverage.
Your lender automatically pays off the mortgage if you die. Your beneficiary has no choice about how to use the funds, at a time when funds may be required the most. Your beneficiaries can choose how to use the funds – to pay off the mortgage, provide a monthly income or take care of a more immediate need. It’s their choice, not your lender’s.
If you make additional payments to your mortgage, your mortgage life insurance coverage decreases. So the harder you work to pay off your mortgage, the faster your mortgage life insurance decreases. Your coverage isn’t reduced by a decline in your mortgage balance.
It’s about getting the most for your money
The cost per thousand of coverage generally increases every year. When you think about it, costs may increase while coverage decreases! You choose the type of insurance that best suits your needs with premiums to suit your budget. We offer a range of term and permanent life insurance solutions. You can choose a plan that will keep the premium you pay level for 10, 20 years or for your lifetime.

Get your personal and mortgage protection under one roof

A personal life insurance policy gives you affordable, flexible coverage that you control.

So talk to Brendon Laing, your financial security advisor at Freedom 55 Financial today to find the right mortgage life insurance protection for you.

Brendon can offer you a wide range of insurance and investment products to meet your needs at every stage of life.

Brendon Laing - Life Insurance & Financial Advisor - Windsor OntarioBrendon Laing

Freedom 55 Financial Security Advisor

Suite 200-140 Ouellette Place
Windsor, Ontario N8X 1L9
Office: 519-967-1180 ext. 266
Fax: 519-967-1234
Cell: 519-819-9403
Email Brendon Laing

This article was provided courtesy of Brendon Laing and Freedom 55 Financial, a division of London Life Insurance Group.

3 Responses so far.

  1. Obviously, Personal Life Insurance is more important than Mortgage Insurance. Mortgage protection life insurance is an insurance plan that will not be offered by your insurance agent- most likely it will be offered by your bank. If you have recently bought a new home or refinanced, chances are your mailbox has been flooded with offers to insure your home.

    • Hi Jack!
      While I agree that personal life insurance is the sure winner, many people are unaware of the huge differences – namely that the mortgage life insurance amount decreases as the balance decreases!

      Hopefully, this post will provide insurance agents like yourself with more business once people realize the true benefit you offer your clients!

  2. Moore says:

    It is important to make priority of your family no matter how complex the situation is. From the start and while in the process, you must understand the policy to make sure that there will be no glitch about it. The part of comparison of the Mortgage Life Insurance vs. Personal Life Insurance is the interesting part of this article because we can easily recognize the difference.

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