For many Burlington homeowners, deciding whether Life Insurance or Mortgage insurance is the best option can be intimidating.
Buying life or mortage insurance can be intimidating. We at the Tregunno Group in Burlington, Ontario believe transparency is always the best policy.
There is never pressure to choose one option over another – the real importance is in knowing all of your options.
Here is a breakdown of the pros and cons of Mortgage Insurance compared to Life Insurance:
PROS:
- It's better than nothing
- You can cancel at any time without any fees
CONS:
- It costs more than a life insurance policy
- Policies are underwritten after you die (meaning coverage is not guaranteed)
- Pricing is heavily weighted on your age, not your debt (as your mortgage goes down, your price goes up)
- You need to get a new policy every time your refinance or renew your mortgage
- It cannot be converted into any other product if your needs change (i.e. whole life policy, estate planning, or universal policy)
The cons clearly outweigh the pros for Mortgage Insurance.
What’s better than mortgage insurance is a life insurance policy that will save you money, protect the assets you have worked so hard for, and alleviate the financial burden for your family.
