Mortgage life insurance offers peace-of-mind to homeowners.
Your home purchase could be the most significant investment you make in your lifetime.
In simple terms, mortgage life insurance offers security by ensuring that if something unfortunate happens, the outstanding mortgage amount will be fully paid off through insurance. It should not be confused with CMHC insurance, which is mandatory for homeowners making a down payment of 20% or less. Mortgage life insurance is not a requirement or prerequisite for obtaining a mortgage.
However, it is essential to understand that once you waive the purchase conditions and, unfortunately, pass away, your estate becomes responsible for the property’s purchase. The surviving spouse may face difficulties qualifying for the property in such situations. Having life insurance in place provides them with peace-of-mind, alleviating potential financial burdens in the event of a tragedy.
How Does Mortgage Life Insurance Work?
In the unfortunate event of your death or if you become terminally ill, mortgage life insurance can provide assistance by covering the outstanding amount remaining on your mortgage, which could be up to $500,000. Additionally, it can also take care of the accrued interest for up to five years. This offers valuable financial protection for your loved ones during challenging times.
In the event of a terminal illness, some mortgage life insurance policies may offer an early payout option, providing additional peace-of-mind for your family during difficult times. It is also possible for co-borrowers or guarantors to be eligible for mortgage life insurance protection.
It is crucial to note that specific restrictions may apply. Therefore, it is advisable to discuss your situation with me before finalizing your paperwork. This ensures that you are well-informed about all the details regarding how mortgage life insurance can effectively work for you.
Applying for mortgage life insurance is a straightforward process.
Before finalizing your mortgage paperwork, inform me of your interest in mortgage life insurance.
To get started with your mortgage application, simply fill out the form, and let’s begin.
Disability Insurance
Accidents are unforeseen events that we never plan for. At MLJ Mortgages, we provide disability insurance through Manulife Financial. Disability insurance ensures that your payments, including property taxes, are covered if you become disabled for more than 60 days. We have encountered situations where work disability was a factor, but the coverage provided was insufficient to meet all the monthly expenses.
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