Listen to this Podcast
Does Your Mortgage Insurance Cover All the Benefits?
If you have a mortgage, you need mortgage insurance. Should someone in your family have an accident, become ill, or suffer something worse, mortgage insurance will help you meet your financial obligations on one of the biggest purchases you’ll ever make: your home.
Many Canadians purchase mortgage insurance through the same financial institution that hold their mortgage. But what they might not realize is that mortgage insurance sold through financial institutions don’t offer the same benefits as insurance products offered by insurance companies.
For example, the benefits from mortgage insurance sold by a financial institution are strictly tied to your mortgage, and decrease in value over time as you pay off your loan. For example, if your mortgage is worth $500,000 when you first purchase your home, your benefit will also be $500,000. After a number of years your mortgage will decrease to $100,000. At that point, the value of your insurance policy will also decrease to $100,000.
In other words, the benefit will only be used to pay your mortgage, and can’t be used to cover other living expenses if you’re struck by critical illness, or as protection for your family in the event of your death.
A term life insurance policy from an insurance company is not married to your mortgage. Using the above scenario, your policy will remain fixed at $500,000 throughout its lifetime regardless of the value of your mortgage. This way, you can allocate the funds wherever you see fit in the event of death, critical illness, or disability. This includes payments towards vehicle loans, second property mortgages, personal lines of credit, RRSP contributions, and other financial obligations that would be impacted by a sudden loss of income.
Take a look at the benefits insurance companies offer that you might not be getting with your financial institution:
- Guaranteed rate for the life of the policy
- Fixed insurance amount in the event of disability, critical illness, or death
- Option to convert your term life policy into permanent life insurance
- Full control over choice of beneficiaries
- Complete freedom to use the money as you see fit
- You stay insured if you switch financial institutions
You’ll need this kind of coverage in the event of an emergency, and the peace of mind it brings when your family needs protection and support the most.
Carte Risk Management Inc. in Mississauga, Toronto, and the GTA
To learn more about how term life insurance can protect your family, call your financial advisor . We’re here to help!
More Financial News & Events
Managing growth for business owners
May
Are you a lawyer with questions on how to grow your investments?
May
Cultivating a growth mindset around money
May
Why financial growth can be deceptive
May
Home and Financial Document Organization
Apr
Business owners, it’s time to start spring cleaning.
Apr
Spring Cleaning Your Finances
Apr
Unique financial challenges female lawyers face
Mar
Taking Action: A Woman’s Perspective on Deciding To Tackle Her Finances
Mar
Is there a gap in your income protection?
Mar
Knowing the difference between Tax Filer and Tax Advisor
Mar
Conquering Women’s Fears Around Finances
Mar
Trends in Family Law
Feb
PART 2: Financial Conversations Couples Need To Have at Different Life Stages
Feb
Financial Conversations Couples Need To Have at Different Life Stages
Feb
Disruption and Reinvention: Starting a Second Career in your Forties
Jan
How to create a strong financial fortress during market downturns
Jan
Creating a Financial Vision Board for 2023
Jan
5 Tips to set yourself up For Financial Success in 2023
Jan
Year-end Donation strategies
Dec
Year-end tax planning
Dec
Getting clients organized for 2023
Combating Quiet Spending
Nov
Our Client’s Journey to Building Financial Confidence
Nov
How Working with an Advisor can Improve your Confidence
Nov
A letter from the CEO’s desk
Nov
Getting Psychologically Ready for Retirement
Oct
Retirement Planning for Business Owners
Oct
Top Issues Clients Face with Retirement
Oct
What Risk Means for your Investment Portfolio
Oct
Finding Investment Opportunities in the Market
Sep
Behind The Scenes On Helping Our Clients Choose Investments
Sep
How to Deal with Debts Amidst Rising Costs
Sep
Buying and Selling Homes as Prices Fall
Aug
Parenting and Back to School
Aug
Dealing with the high cost of living
Aug
Ask Team Jackie Porter Series – Financial Planning with Jin Lee
Aug
Budgeting for Home Renovations
Jul
Mental Health and Finances
Jul
Planning a Vacation Post Covid
Jul
Dealing with spending pressures
Jun
Behind the Scenes – Working with Lawyers on a Financial Plan
Jun
Positive Experience with Financial Planning – A conversation with Erin Leslie
May
What Are the Process of Putting Together a Financial Plan? – A conversation between Jackie and Jin
May
Creating Financial Transformations
May
Building A Brand Effectively in Second Quarter – A Conversation with Cassie Drake
May
How to boost your business mojo – A conversation with Valeri Hall Little
Apr
How to make a financial fresh start second quarter? 5 principles from Jackie Porter
Apr
The #1 Challenge that Leaders Face, from the Founder of Green Apple Consulting – Lisa Mitchell
Apr
What is entrepreneur resilience? A conversation with Karen Dean
Mar