Are you considering investing in mortgage life insurance? Here's how to select the right waiting period that suits you.
Becoming a homeowner is one of life’s most exciting and challenging experiences. But it doesn’t have to be a worrisome time! Mortgage life insurance is the ultimate financial safety net, designed to protect your family from losing their home if you’re unable to provide an income any longer.
20/20 is Canada’s first digitized mortgage life insurance product, free of many of the drawbacks of traditional MLI. This means that:
- You are able to choose your own beneficiary
- It’s easier than ever to switch lenders
- You can enjoy lower premiums
- You’re approved instantly
A Mortgage Life Insurance Policy That Puts You In Control
At 20/20, we are proud to offer a transparent, customizable, and flexible mortgage life insurance product that meets all your unique needs without the hassles and extensive underwriting of traditional MLI.
No matter your situation, we help you find a policy that will protect your family’s financial future, whatever difficulties they may face.
Want to know more?
Understanding the Mortgage Life Insurance Waiting Period
Mortgage life insurance can be one of the more complex and misunderstood risk products, even more so when it comes to selecting a waiting period.
What is a waiting period?
The waiting period for a mortgage life insurance is the amount of time you must wait from when you become unable to work due to illness or injury to the time you become eligible to start receiving income protection benefit payments.
Some of the factors you may want to take into consideration when selecting a waiting period for your MLI include:
- Do you have any savings? If so, how long can you live off your savings?
- Are you willing to sell an asset to fund the waiting period?
- How much sick or holiday leave do you have?
How Long Should My Waiting Period Be?
The length of your waiting period is an extremely important consideration when purchasing a mortgage life insurance policy. If you are suddenly left without an income, you need to ask yourself one crucial question:
Will I have enough money to be financially secure until my benefit payments begin?
You could have numerous financial responsibilities including car payments, school fees, and daily living expenses, so unless you have investments or savings to draw on, you could find yourself in a dangerous financial situation if your income was to stop suddenly.
When it comes to deciding which waiting period is right for you, remember that everyone’s situation is different so you MUST factor in:
- Your weekly budget
- Any financial obligations you have
- How much sick and annual leave you have accrued through your employment
- How much savings you have
Once you have answered all of these questions, you can rest assured that you are in a good position to choose a waiting period you can afford and that will allow you to comfortably bridge the gap between the time of your illness/injury, and the day you begin receiving your benefit payments.
Risks of choosing a longer waiting period:
- If you change your job and cannot transfer your accrued annual leave, you may not have sufficient leave time to fall back on during a longer waiting period.
- If you have new financial obligations such as a growing family or increased mortgage, you may discover that your savings and leave are insufficient to sustain your standard of living.
Talk to a Licensed Agent Today
If you require help with choosing the right mortgage life insurance policy for you and your family, our licensed agents are always on hand to give you professional advice that can ensure your financial stability.
To find out more, contact us at 1-866-821-1439 or fill in our online contact form.
