If you’re buying a home, there’s a lot to think about. As you begin making choices from finding the best mortgage rates to choosing your colour scheme, it's good to know you also have choices when it comes to protecting your mortgage and your family's finances from the unexpected.
While you know you’ll need insurance, it’s important to understand the different types of coverage and the different kinds of policies.
Choosing both term life insurance and critical illness insurance together gives you and your family the right protection when you need it most.
Most mortgage lenders will give you the option to apply for mortgage insurance directly through them. But before you finalize your mortgage, think about how different their policies are from ours.
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
Only the balance of your mortgage
Whatever you need it to cover. In addition to your mortgage, it can cover debts like your line of credit, credit cards, etc.
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
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
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
You lose all the money you paid for the coverage
Depending on the terms of your insurance policy, you may get some of the money back that you've paid in premiums*
*Depends on the type of critical illness insurance you have and does not apply to term life insurance.
You may have the flexibility to adjust the type and amount of your insurance, or even convert to a permanent solution
A mortgage is a long-term obligation to pay back the money you’ve borrowed – and a lot of things can happen over the years. Whether you're single, married or living common law, and whether you’re with or without children, it's important to protect yourself and the ones you love.
Building a plan that that includes both term life insurance and critical illness insurance means your family has the best possible protection against the significant impact of unexpected illness or death.
Building a plan that includes both term life insurance and critical illness insurance means you retain financial independence with the best possible protection against the significant impact of unexpected illness. And, your finances will not burden others if you die unexpectedly.