For the majority of Canadians the single biggest financial obligation you will ever have is your mortgage. Purchasing a home is a huge investment and one that is best insured, but what about the mortgage itself? The three most common type of mortgage specific insurance polices are mortgage payment protection insurance, mortgage fire insurance, and mortgage life insurance.
Mortgage payment protection is designed specifically for instances where the borrower becomes disabled, and otherwise unable to make their mortgage payments. This type of policy have began to widen to even include unemployment. Mortgage fire insurance is a requirement of mortgage lenders, in that in the event the house was to be lost in a fire, money would be unavailable to rebuild. This would mean either a re-mortgage or simply selling the lot to recover costs.
Mortgage life insurance is the third type of mortgage insurance, and can provide a significant level of protection. With this type of policy, the mortgage is paid off in full in the even either borrower were to die. Unlike fire insurance, this type of protection is not required, but is it a good idea? Unlike other more traditional forms of life insurance, this type of insurance designates the lender as the beneficiary. Many financial professionals suggest that for those who are looking to ensure that the financial burden of their mortgage is not passed on, to look at comparable term life insurance policies in Canada.
The first step is to speak with an experienced financial advisor who can help you get the coverage you need within your budget. LifeCover.ca has a large network of independent insurance professionals ready to work with you.
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