This is one of the most affordable policies for Canadians looking for life assurance cover that will protect their home. Mortgage protection plans offer coverage that covers only the cost of your mortgage in the form of a death benefit. This is an important distinction between this type of insurance and other more traditional types. As you pay your mortgage off, the death benefit decreases accordingly. Therefore if the insured dies during their mortgage, this type of insurance would pay off the remainder securing the home.
When you borrow money for your new home, chances are it will be the largest financial commitment you ever make in your life. This is why it's important to ensure you have coverage that will protect you and your family should you die. This is what mortgage protection insurance was designed for.
It is important to discuss your options with an impartial third party before signing the dotted line. Many times these types of policies are offered as an addition to your mortgage and are motivated by commissions and may not be in the borrower's best interest. Instead, those looking for mortgage protection would benefit from a term life insurance policy as its death benefit never decrease.
Another option for many Canadians is to supplement their mortgage protection plan with a critical illness insurance plan of some kind - that way you're covered for anything that might happen in the future. Most importantly, your family is protected.