Buying mortgage life insurance is a serious decision. Here are 4 factors you must take into consideration when choosing the best mortgage life insurance policy for you and your family.
If you’re like many Calgarians, your home is the most important asset you own and a good part of your income probably goes into paying the mortgage every month. But what would happen if your family no longer had your income?
Mortgage life insurance is designed to offer you peace of mind, knowing that your loved ones could stay in the family home without worrying about being uprooted if you became disabled or died prematurely.
Some of the best benefits of mortgage life insurance are:
- it’s affordable
- it provides your family with a free and clear mortgage
- mortgage life insurance typically requires very little underwriting
- it ensures your surviving spouse and family can enjoy financial stability during one of life’s hardest periods.
AIME Helps You Choose The Best Mortgage Life Insurance Policy For Your Needs
At AIME, we strive to make mortgage insurance products as accessible, transparent, and simple as possible, so you can choose the best life insurance product to suit your family’s unique needs.
Want to know how we can help you?
How To Choose The Best Mortgage Life Insurance Policy
If you have a mortgage, it’s important to make provisions to ensure that if anything were to happen to you, your family isn’t left with a huge mortgage debt and the prospect of losing the family home. The best way to do this is to buy mortgage life insurance.
However, before you decide on your mortgage life insurance policy, you MUST consider the following things:
1. Portability
One of the biggest factors you should take into consideration when purchasing mortgage life insurance is the portability of your policy. If you buy it from a traditional lender, it is often locked in.
This means that should you decide to refinance or switch lenders, then you’ll have to requalify for a new insurance. Oftentimes, this leads to pricier premiums.
At AIME, your insurance policy moves with you!
At AIME, we want to offer you insurance products that ALWAYS work in your favor. With us, your mortgage life insurance policy is mutually exclusive of your lender, which means that even if you switch lenders, you NEVER lose your protection and there’s no need to reapply or requalify!
2. Your Future Plans
Before deciding which mortgage life insurance policy is best for you, you must take the time to lay out your future plans. When deciding on mortgage insurance, make sure to ask yourself the following questions:
- Do you know how long you’ll be staying in the house?
- Do you have plans of moving somewhere else?
- Do you have the means to pay off your mortgage early?
If the answer is yes to any of the questions above, then a short mortgage life insurance period may be the right option for you.
3. Single Vs Joint Insurance
One of the most common questions asked when couples take out mortgage life insurance is whether it should be on a joint or single policy. While talking to a licensed insurance agent can always help you make the right decision, choosing between the two will depend on several factors, including:
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Your budget. One joint insurance policy is usually cheaper than two single ones.
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Your future. You must consider the likelihood of your relationship breaking down and remember that if you claimed against a joint life policy, the remaining spouse would be left without cover.
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Type of cover. Do you and your spouse have similar needs or would two single covers be a better option?
4. Length of the Mortgage Period
Of course, this should be one of your main considerations when it comes to your choice of mortgage life insurance plan. You’ll want to match the length of your plan to the length of your mortgage.
Something to think about: Some individuals opt to get a plan that has a shorter period than their mortgage since they plan to pay off the mortgage earlier.
Call Today
To find out more about our flexible, transparent, and affordable mortgage life insurance products, or to talk to one of our licensed agents today, contact us at 1-866-821-1439 or fill in our online contact form.
