Mortgage insurance helps provide peace of mind to the borrower and reduces the risk for the lender.
Mortgages are a great way to obtain finances for the purchase of a home or a car. However, the lenders always face risk, and the financial burden can also become stressful for you and your family. Mortgage insurance helps provide peace of mind to the borrower and reduces the risk for the lender.
How does Mortgage Protection Insurance work?
In the event of the insured’s demise, the mortgage insurance payout can be used to pay off the remaining or part of the principal amount. This can help significantly reduce the burden of a mortgage on your family and even protect your assets.
Mortgage insurance or creditor’s insurance can only be used to pay off mortgage debt. It cannot be used to cover any other form of expense.
Are there any flexible alternatives to Mortgage Protection Insurance?
If you want to cover more than just mortgage expenses for your family after your demise, we have other options such as term life and critical illness insurance.
These insurance types will provide your family with the choice to use the benefits in the manner they see fit. It will not be restricted to just mortgage debt. These insurance plans will be able to provide your family with the financial security they require in the event of your demise.
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You can combine the benefits of term life and critical insurance to provide your family with more benefits.
a) What is critical illness Insurance?
In the scenario that the insured becomes seriously ill, they will receive a lump-sum payment. This can be used as per the wishes of the insured or their family and can be used to pay off a mortgage debt or medical expenses. It really helps the insured and their family financially, allowing them to focus on recovery.
b) What is term life insurance?
A term life insurance is an insurance plan that can be drafted for a defined time period. The time period is usually short, ranging from 10 to 30 years. Term life insurance plans typically have affordable premiums and can provide flexible protection to the beneficiaries. It can be used to pay off a mortgage debt or cover other expenses in the event of the insured’s demise.
What is the difference between Mortgage Protection Insurance, term life insurance, and critical insurance?
ParticularsMortgage InsuranceTerm Life InsuranceCritical Illness Insurance
Who does the insurance cover?
One or more individuals listed on the mortgage
You, your partner, your children, and your other family. The beneficiaries need not be listed on the mortgage.
You, your partner, your children, and your other family. The beneficiaries need not be listed on the mortgage.
Coverage
Covers only the outstanding mortgage payments
Can be used for anything the beneficiaries require. It can be used to cover multiple debts such as credit card, line of credit, and mortgage debt.
Can be used for anything the beneficiaries require. It can be used to cover multiple debts such as credit card, line of credit, and mortgage debt.
Who gets the benefit in case the insured passes away or becomes seriously ill?
The mortgage lender is the only one who will receive the benefits.
The benefits will be provided to the individuals you list as the beneficiary.
The benefits will be provided to the individuals you list as the beneficiary.
What happens as my mortgage balance decreases?
As you keep making payments against your mortgage debt, the coverage amount will decrease. However, your rates will stay the same. Once the mortgage is fully paid, the coverage will disappear.
Even if you have paid off all of your mortgage debt, the coverage will stay the same, unless you decide to change it. The rates will also stay the same.
Even if you have paid off all of your mortgage debt, the coverage will stay the same, unless you decide to change it. The rates will also stay the same.
What happens if I switch mortgage lenders?
The coverage may be lost. You may even have to reapply for it. The premiums will be different as the rate may change with the new lender. You may also have to undergo a health check-up when you apply again.
Your coverage will stay the same. Unless you decide to modify the coverage amount, it will remain the same even with a new lender. The coverage is not tied to the mortgage and can be maintained.
Your coverage will stay the same. Unless you decide to modify the coverage amount, it will remain the same even with a new lender. The coverage is not tied to the mortgage and can be maintained.
Call 1 844-542-4678 to speak to our advisors.
