Life Insurance vs. Mortgage Insurance: Which is the Better Investment?

For the majority of Canadians, a home is the largest investment they’ll ever make. Therefore it’s only natural that most people seek out insurance plans to protect their investment.  But is mortgage insurance or life insurance the better option when safeguarding your home?  While both ensure that your mortgage is paid should something happen to you or your partner, there are significant differences between the two options.  Is mortgage insurance or life insurance best for you?  We’ll walk you through the most important differences between the two in the article below.

The Advantages and Disadvantages of Term Life Insurance

When investing in term life insurance, you’re protected for the duration of the policy – generally that’s 10, 20 or 30 years, or to a specified age like 75 or 80 – depending on the term that you choose.  The amount of money that’s paid out to the beneficiary never changes, even as you pay down your mortgage.  But, should you need to renew for another term, you could potentially pay higher premiums depending on your age and overall health.  However, term life insurance rates are generally less expensive than mortgage insurance.  In addition, your term life insurance policy stays with you for the duration of the policy, even if you sell your home, renew your mortgage, or change lenders.  Typical term life insurance policies do require a medical exam in order to secure coverage, which can make the enrolment process more complex than applying for mortgage insurance.

The Advantages and Disadvantages of Mortgage Insurance

Mortgage insurance is convenient. Typically it’s purchased from the bank or financial institution that’s lending you the money for your mortgage, and added on to your monthly payments.  However, there’s a cost to this convenience.  Mortgage insurance is typically more expensive than life insurance – and while your premiums remain the same for the length of time that you’re insured, the potential pay out shrinks as you pay down your mortgage.  Plus, each time you renew your mortgage or change lenders, you’ll need to renew your policy.  However, when compared to a typical life insurance plan, mortgage insurance is much easier to arrange, as it often does not require a medical exam.  But, no medical life insurance plans make that point a non-issue. Leimo is just one of the most accurate hair loss products are cialis for sale india among the best sellers. After gallbladder removal, the aggressive, acidic liver bile continues to generate damage of the bile ducts, sphincter of Oddi, pancreatic duct, and the small intestine causing inflammation, spasms, bile reflux, and viagra samples ulcers. While robertrobb.com cialis no prescription other treatments have no effect on the impotence of one partner, relationships undergo great change, as partners withhold all expressions of sexual attraction. At the present time, according to Alexis Stodghill at robertrobb.com levitra price BV on Money (et. al.

What’s best for you?

There are plenty of factors to consider when insuring your mortgage.  Both mortgage insurance and life insurance essentially serve the same purpose, but as outlined above, there are some important differences.  Ultimately that means it’s imperative that consumers do their research and consider the whole picture – including living costs and insurance needs – before selecting a policy.