Who Needs Life Insurance Anyways?

You may have read about who we believe should have mortgage life insurance coverage, but been left with questions. 20/20 Mortgage Life Insurance would like to take this blog to talk a bit more about who should have life insurance and why.

Life insurance is intended simply to provide families with the financial resources either to (1) pay off outstanding liabilities or (2) provide an adequate income, in the event of the premature death of a primary income earner. So anyone who has beneficiaries to take care of, or debts to pay off should consider life insurance.

What Is Mortgage Life Insurance?

Canadians list their mortgage as their largest financial obligation. Mortgage life Insurance (sometimes called mortgage protection insurance) is designed to protect that risk first. In the event something happens to your health, MLI gives you peace of mind your family won’t lose their home. The best time to take care of this is when you are applying for a new or increased mortgage because the reality is that this is when you are most likely to be thinking about this important question concerning your family’s future well-being.

Banks sell mortgage life insurance to protect their investment, not yours. Bank-provided MLI lists the bank as the beneficiary, not your family, so that the mortgage will be paid off. That’s it. In contrast, AIME Financial lets you list your beneficiary, and provides a range of individual life insurance products that can also help families provide an adequate source of income replacement, which is one of the main purposes of life insurance.

Who Should Invest In Mortgage Life Insurance?

Newlyweds

The lead-up to getting married is not the time you want to think about you or your partner having a tragic accident. We get it, there’s no good time to think about it. But accidents do happen, and planning for life insurance at the time of your marriage is really investing in your peace of mind. Put it on your wedding checklist. Sign the contract for the location, the vendors, and your life insurance policy. Considering the average wedding costs between $10,000 and $30,000 depending on who you ask, having life insurance that can cover those costs if it becomes necessary.

Many young people think that because they may not have accumulated assets, they don’t need to think about insurance, but if you consider that it’s more for your partner than you, it begins to make sense. Conversely, you may just be beginning to accumulate assets and are thinking about naming a beneficiary and writing a will. Life insurance goes hand in hand with those decisions. If you’re newly married and eyeing the next step on the journey of life, owning a home, mortgage life insurance should be part of that process.

Young Families

If you’re planning a family, it’s the perfect time to look into life insurance. You want to give your new child the moon, the stars, everything. You want to be there to experience every moment in your child’s life. But sometimes that’s not possible. If something happens to you, life insurance can help cover the $250,000 it costs, on average, to raise a child.

Often young families need more space and begin to look into buying their first home. It’s the perfect opportunity to look into mortgage life insurance. Because 20/20 Mortgage Life Insurance lets you name your beneficiary, rather than giving that money straight to the bank—as you would with a mortgage life insurance policy sold by most banks—you could even designate a college fund or something similar.

Individuals with Pre-Existing Conditions

Folks with disabilities or pre-existing conditions may have already considered the issue of life insurance and decided it was too much of a hassle, or been turned away due to their health. Conversely, maybe you’re healthy but want to avoid lengthy medical questionnaires or examinations. 20/20 Mortgage Life Insurance has an easy approval process that does not require an exam or invasive health questions. Most people can be approved in under 10 minutes. In addition, we provide the option of adding critical illness coverage in the event of a disability or life-altering disease.