Mortgage Protection Insurance Can Help Your Family
If you’re buying a new home and you’re worried about the economy and inflation, mortgage protection insurance can help relieve some of the stress.
Mortgage protection insurance pays a tax-free lump sum that can be used to pay off your mortgage or continue monthly mortgage payments, or other expenses that result, if you were to die or become disabled.
Your Western life insurance expert will take the time to explain mortgage protection insurance to you and how it works in the event of death or disability. If the unexpected happens, you don’t have to worry about your family’s biggest bill.
Mortgage protection insurance can pay some or all of your outstanding mortgage balance if you become disabled or pass away.
Here’s what you need to know:
What is mortgage protection insurance and how does it work?
Mortgage protection insurance is a life insurance policy that can pay off the mortgage in the event of your death, and it can also be disability insurance to cover the monthly mortgage payment.
What does mortgage protection insurance cover?
It can also be used to pay off debts, cover living expenses, or pay for childcare. It helps your family stay in their home.
Your beneficiaries would receive a tax-free death benefit. The exact amount of the death benefit would depend on how much coverage you have.
Speak to your Western life insurance expert to make sure your family has enough coverage.
You’ll be asked the owing amount on the mortgage, its amortization period, and the monthly amount of the mortgage payment.
What if I get mortgage insurance through my lender?
Mortgage insurance through a bank or lender is not the same as mortgage protection insurance.
If you get mortgage insurance through your lender, it can only be used to pay off some or all of the remaining amount owed on your mortgage in the event of your death. You can’t use it to pay off any other debts or to cover expenses. Mortgage insurance does help your loved ones stay in their home, though.
The money won’t go to a beneficiary and, instead, it goes directly to your bank or mortgage lender to cover the amount owed.
Your family’s financial needs may go beyond paying off the mortgage or making monthly payments. That’s how mortgage protection insurance can benefit you and your family.
How does mortgage protection insurance help in the case of disability or critical illness?
Mortgage protection insurance can also make your mortgage payments if you can't work due to a severe injury or illness.
Mortgage disability insurance covers your ongoing mortgage payments for a specified period of time should you become disabled due to illness or injury that prevents you from returning to work.
It can be purchased as a rider on life insurance, but it can also be purchased as a stand-alone product.
Ask your Western life insurance expert for more details to understand mortgage protection insurance in the case of disability.
Is mortgage protection insurance the same as mortgage life insurance?
No. If you have mortgage life insurance, the payout goes directly to the bank or lender to pay off your mortgage and there is no extra money to cover other expenses or leave to beneficiaries.
Is mortgage protection insurance the same as CMHC mortgage loan insurance?
No, they are different.
If you want to buy a home with a down payment of less than 20%, you’ll need mortgage loan insurance from the Canadian Mortgage and Housing Corporation (CMHC). This protects your lender in case you can’t make your payments.
Is mortgage protection insurance the same as homeowner’s insurance?
No, they are not the same at all. Your homeowner’s insurance policy insures your home, personal belongings and provides liability coverage against covered claims, such as fire or theft.
Ask your Western insurance expert about how mortgage protection insurance can help you and your family.
Life insurance can meet your family’s needs
Life insurance is about protecting your family for the future and helping to meet their needs. As your circumstances change over the years, it’s a good idea to keep reassessing how your life insurance can protect your family.
Your Western life insurance expert can speak to you about how life insurance can help protect your family over the years.
Western Insurance has over 40 licensed LIFE INSURANCE EXPERTS across Canada. Our experts are available now in branch or on the phone to help you navigate the life insurance journey that will give you the right policy to protect yourself, your investments, and your family.
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