What are my mortgage protection options?
When you apply for a mortgage, your mortgage lender might give you the option to apply for mortgage insurance. Before you meet with a lender, take a moment to understand your options.
Here are some things to consider:
| Mortgage insurance through a mortgage lender | Term life insurance and critical illness insurance from Sun Life Financial | |
| Who does the insurance cover? | Only the individual(s) listed on the mortgage. | You, your partner and your children – you can protect your whole family, even those who are not responsible for paying your mortgage. |
| What does the insurance cover? | Only the balance of your mortgage. | Whatever you need it to cover. In addition to your mortgage, cover debts like your line of credit, credit cards, etc. |
| Who gets the benefit if I die or become seriously ill? | The mortgage lender is automatically the beneficiary. | You decide who gets the insurance benefit and how it's used – to pay your mortgage, medical expenses or your child's education – whatever is best for you and your family. |
| What happens as my mortgage balance decreases? | The coverage amount decreases as the mortgage balance decreases. When the mortgage is paid off, the coverage ends. | The amount of coverage you have stays the same for as long as you own your policy – unless you decide to change it. |
| What if I switch mortgage lenders? | You may lose the coverage and might need to reapply. | Your coverage stays the same – unless you decide to change it. Since your coverage is not tied to your mortgage, you can carry it with you if you move again. |
| What if I cancel my insurance? | You lose all the money you paid for the coverage. | Depending on your insurance, you may get some of the money back that you've paid in premiums*. |
| What if I want to change my insurance? | You can't. | You may have the flexibility to adjust the type and amount of your insurance, or even convert to a permanent solution. |
*Depends on the type of critical illness insurance you have and does not apply to term life insurance.
Talk to your advisor today and ask how you can protect your mortgage with coverage you can carry with you. If you aren't already working with an advisor, visit Find an advisor to find the right match for you.
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