Mortgage Life Insurance – Explained

Watch Manulife Mortgage Protection Insurance – explainer video

One of life’s most significant events is the purchase of a home. It is also one of the most significant expenses for most households. A big percentage of our salary is usually used to pay our monthly mortgage payments. While it’s not a pleasant subject to contemplate, consider the following: “How would your mortgage payment be made in the event of your death?” It is critical to have a strategy in place to protect your family from mounting living expenditures that will not simply vanish after you are gone. The bank and mortgage lenders will continue to demand payments, putting a significant financial strain on your family.

WHAT IS THE DIFFERENCE BETWEEN PERSONAL AND MORTGAGE LIFE INSURANCE?
The amount owed on a mortgage lowers as it is paid off. The remaining balance of your mortgage is covered by mortgage life insurance. Personal life insurance isn’t always related to your mortgage, whether it’s term life insurance or whole life insurance. The former insurance term ends when your house is paid off, however a personal life insurance policy is unaffected by the mortgage and will continue to protect you and your family for years to come. Beneficiaries typically get coverage in the form of a lump sum payment, known as a death benefit.

We’ll ask you health-related questions to see if you qualify. At Shelter Bay, we are dedicated to obtaining the best possible coverage for you. As a result, we will make every effort to provide comprehensive coverage options that meet all of your requirements.
Although some lenders provide mortgage insurance, we feel that mortgage life insurance is the best protection for you and your family. Personal life insurance can be used to pay for things like home insurance, credit cards, education, and yes, even mortgages.
When you switch lenders, you may lose your insurance and need to requalify.

For your life and your mortgage, choosing a flexible coverage that evolves as you do is critical. Contact us today to learn more about mortgage protection insurance!

Purchasing a separate mortgage life insurance policy, on the other hand, provides advantages. Mortgage protection insurance will be applied to the outstanding balance of your loan. This frees up monies from other policies for your family to spend toward savings or your children’s education.