What is Mortgage Life Insurance?
Mortgage insurance is offered by most banks and lending institutions. They will offer it to you when you get morthage or refinance your existing one. It is an insurance policy that pays te balance of your mortgage to the lending institution if you, the person listed on the mortgage, pass away. Mortgage insurance provides a life insurance amount equal to your remaining debt. As your mortgage decreases, so does the pay you receive.
The cost of the insurance is based on the mortgage amount and your age at the onset of the mortgage, and the payments remain constant trough the life of the policy. Essentially, you are paying the same monthly premium for a reducing amount of coverage as you pay down your mortgage.
Mortgage life insurance is great for the lender because it is listed as the beneficiary on your policy.
How Does Term Insurance Cover My Mortgage?
Term life insurance provides protection for a specified period of time. A death benefit is paid to your beneficiary if you die while the policy is still in force. When you purchase a term life policy, you are covered for the full amount of your mortgage, not just the outstanding balance, for the life of the policy. That means you have a constant level of coverage for the whole term. It is usually cheaper and you choose your beneficiaries. Also, the proceeds from your term insurance can be used in any way your beneficiary deems necessary - not just to repay the mortgage.
Your Best Option.
Buying a new home is the perfect time to purchase term insurance to protect your mortgage and your family. Based on it's flexibility, coverage and price, term insurance is a superior option to mortgage insurance.
SYNERGY - WHEN LIFE HAPPENS! NEW WITH MANULIFE
Synergy offers the protection of a three-in-one solution: A LIFE INSURANCE POLICY, A DISABILITY INSURANCE POLICY AND A CRITICAL ILLNESS INSURANCE POLICY - all in one.
Synergy is easy to manage, affordable, unique and flexible.
Three-in-one solution: a life insurance policy, a disability insurance policy and a critical illness insurance policy - all in one package.
At the core of Synergy's design is a unique pool of money concept.
You can buy a minimum of $100,000 and up to $500,000 of Synergy amount of insurance. The amount of insurance you buy creates a pool of money called your available amount of insurance. Whenever a benefit is paid, your available amount of insurance reduces by that amount.
You can access your available amount of insurance three ways: Disability Benefit, Life Insurance or Critical Illness Insurance.
Your Synergy coverage offers protection until your available amount of insurance is reduced to zero or at age65, whichever comes first.
Email Sharon today for a free brochure on Synergy.
sharon@integrityschoiceinsurance.com
