Mortgage professionals like myself can protect our clients, their families and their homes by providing mortgage life insurance policies during the mortgage process.

Mortgage life insurance is a policy on the homeowner, which allows their family or dependents to pay off the entire mortgage should anything tragic happen to them. This is different than mortgage default insurance, which mortgage lenders require to cover their own assets if the buyer has less than 20% equity in the home. Mortgage life insurance is meant to protect the family of a homeowner, but not the mortgage lender.

While it’s reassuring to know that if you were to pass away that your mortgage would be paid off, is it really necessary? Well, if you already have an adequate amount of life insurance in place then the answer may be no. That being said, if you’re the primary breadwinner in your home, and your death would leave your family without the means to pay for the mortgage, then mortgage life insurance might be something to consider.

When considering mortgage life insurance policies, make sure you know if the policy you choose is portable, and backed by a large organization. Your Mortgage Broker should take you through the ins-and-outs of the mortgage life insurance policy that they are offering. By evaluating your needs, and the differences in coverage and costs, you can make the best decisions for you, and your loved ones.

Let me know if you have any questions in regard to life insurance by emailing me at [email protected]

All the best,

-D