Mortgage Life Insurance

How Mortgage Life Insurance Works...

A bank plan is meant to provide peace of mind so that if you die there will be sufficient proceeds to pay off your outstanding mortgage debt. 20/20 works the same way, but instead of paying the money directly to your bank if you die, it provides your beneficiary with a tax-free lump sum benefit that can be used to discharge your mortgage obligation or for whatever other purposes the beneficiary considers most appropriate.

20/20 is portable and will continue to cover you if you change banks or your mortgage changes.

The life insurance benefits are equal to your outstanding mortgage balance at the time of your application (to a maximum of $600,000). To keep your premiums affordable, benefits are reduced in proportion to your outstanding mortgage balance. We tell you up front exactly what your coverage will be for each year so that you know you will always have enough to pay off your mortgage in the event of a claim. And if you end up paying your mortgage down faster than the schedule shown in your policy, your coverage will not be reduced.

Because we don't know the exact amount of your outstanding mortgage we use a conservative 6% amortization schedule, which will always result in a higher amount of coverage than you would have with your bank (unless the interest rate on your mortgage exceeds 6%).

20/20 Mortgage Life Insurance is available with single or joint life coverage.

  • Term life insurance with decreasing life insurance coverage to approximate your mortgage balance.
  • Declining balance is based on an approximation of your monthly mortgage payments (using an interest rate of 6% for the remaining mortgage amortization to keep the amount insured at/or higher than your outstanding mortgage balance).
  • Simplified issue (signed declaration with proof of existing bank mortgage insurance if issued within previous 12 months, or a short-form health questionnaire if bank mortgage insurance in force for more than 12 months).
  • Premiums are level, guaranteed and payable for the selected term.
  • Available as an individual or joint first-to-die policy on two insureds.
Issue Ages

From 18 to 59 at last birthday. Policy terminates at age 70.

Term of Coverage Any length from 10 to 25 years. The term can be less than or equal to the remaining mortgage amortization.
Sum Insured $50,000 – $600,000
Right to Modify Term None, the insurer may not modify the term.
Additional Coverage

The following benefits can be purchased with a 20/20 Mortgage Life Insurance policy and must be issued at the same time:

  • Critical Illness Insurance or
  • Disability Income Insurance
Joint First-to-Die Policy
  • If either owner dies, the sum insured is paid to the beneficiary and the policy terminates.
  • Once the older insured reaches age 70 and his/her coverage ends, the younger insured continues to be covered until he/she reaches the age of 70.
Pre-existing Conditions Exclusion None
Portability Yes. Coverage continues if you change banks or your mortgage terms change.


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Questions? Comments? Call us today at 1-844-974-2020 or fill out the form below:
AIME Financial Group Inc.
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