Investing in mortgage protection insurance in Edmonton is the best decision you can make. It is a vital financial product. Mortgage protection is a term policy that provides coverage for your mortgage in the event of an unexpected death. Companies offer term coverage (20 or 30 years) designed to help family members cover the mortgage amount and other financial needs after the death of a loved one, but best of all, these policies come with lifetime benefits.
Suppose the owner of mortgage protection insurance is diagnosed with a severe health problem, such as heart problems, stroke, or cancer, to name a few, or meets with an accident that causes partial or total loss of income or death. In that case, this type of insurance can cover their monthly and treatment expenses or funeral costs. The person can access up to 80% of the insurance value while alive.
Life insurance is not the same as critical illness insurance. While life insurance covers specific essential issues and offers many benefits, it has limitations.
People often hear about mortgage protection insurance and automatically think of PMI or private mortgage insurance. However, there are some clear and distinct differences.
Mortgage protection insurance is an optional coverage designed to pay the balance of a real estate loan. In other words, this type of insurance protects you and your family. Private mortgage insurance (PMI) is coverage that mortgage lenders can require if the homeowner does not put down at least a 20% down payment when purchasing the home. PMI protects the lender, not the homeowner if the debt is not paid as scheduled.
For the most part, protecting your mortgage is the main reason to buy mortgage protection insurance. Companies often ask about your mortgage balance to help you calculate how much life insurance coverage to purchase. Life insurance, depending on the person’s age and other factors, can cost the price of a pizza.
Mortgage protection insurance gives your family options. If they want to use the death benefit to pay for the house, they can; if they prefer to use that money elsewhere – that is also an option.
Many factors influence the cost of life insurance coverage, even if you purchase it to protect your home mortgage. It includes the level of coverage (i.e. the amount you owe on your home), your age, your health, your location and things like smoking or hobbies. For example, coverage of CAD 500,000 for 30 years, a healthy, non-smoking man in his 30s can expect to pay around CAD 40/month.
If you owe on a home mortgage, mortgage protection insurance is a good idea. It is true if you have a spouse or minor children who would be financially affected by your death or loss of income. Even if you don’t have children or a partner, affordable life insurance can help protect your loved ones in the event of your death, leaving them with enough funds to pay off their house or cover the expenses that would be involved with the listing and selling the property in your absence. To buy the best mortgage protection insurance in Edmonton, visit Hope Insurance Broker. We can help you secure your loved ones. Grab the best deal now!
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