Are you in the market for a new home? Maybe it’s your first home, or a stepping stone to your forever home, or maybe it’s your absolute dream home. Whatever the situation, there are some important financial decisions you’ll need to consider.
Once you’ve secured your mortgage through a licensed mortgage broker, it’s a good idea to think about how it will get paid if anything ever happened to you and/or your partner. If you currently have loved ones living in your home, you’ll want to know they still have a safe place to live if you’re not able to provide for them.
Your bank or mortgage lender may suggest mortgage insurance. At first glance, that might sound like a great idea, but you should know there are other options available.
If you have sufficient term insurance, your beneficiaries should receive enough money to cover all of your debts—including your mortgage. Depending on the kind of future you see for your loved ones, you may also want to have some money left over to help fund education or retirement plans.
Here’s a quick side-by-side comparison of term insurance versus mortgage insurance:
As you can see, there are a number of reasons to consider protecting your mortgage with term insurance, rather than mortgage insurance. Before making your decision, remember—you want to protect your family, not the lender!
If you’re currently in the market for a new home, or you’d simply like to review your current insurance coverage to ensure your mortgage bills won’t be left to your partner or dependents, please contact us or book a meeting. We’d be happy to help create a plan to protect everything that’s important to you.
Disclaimer: This article is for educational purposes only. Please speak to a licensed insurance and/or investment professional to discuss your options.