What Is Mortgage Life Insurance?
Why Should You Care?
Mortgage life insurance is an insurance policy that’s designed to financially protect you and your loved ones in the event of an untimely death. The banks typically try to sell this insurance when they approve your mortgage, but most financial advisors recommend that you look for this insurance elsewhere.
Why?
Because life insurance through your bank only protects the bank, not you or your family. The bank's coverage is tied to your mortgage, so pay-outs shrink as you pay your mortgage off. The bank's policy is non-portable, meaning that if you move you will need to cancel and re-apply for insurance with higher monthly premiums.
The bank makes themselves the sole beneficiary, meaning all claim funds go directly back to the bank instead of your family. You’ll also pay higher premiums from day one that continue to increase as you age.
A mortgage life policy through Worb Financial puts you and your family back in charge. The policy is tied to you, not your mortgage, so your pay-out remains the same for the entire length of the term; no matter how much you have left on your mortgage, your family receives the entire pay-out.
Your Worb insurance is portable so you can take it with you if you decide to move. Your premiums stay the same for the entire term, with no increases - ever! Your family chooses where to spend the money, not the bank.
You deserve financial protection that works for you and your family. Let Worb Financial help you pay less and get more from your mortgage life insurance policy. Book your consultation today!
Frequently Asked Questions About Mortgage Life Insurance
Why Is It Important To Insure Your Mortgage?
You have the option of purchasing mortgage life insurance through your lender (Credit Life Insurance), or through an independent insurance broker (Mortgage Life Insurance). A mortgage life insurance policy through an independent insurance broker is recommended by most financial advisors.
Why Is It Important To Insure Your Mortgage?
What Are My Options For Insuring A Mortgage?
Mortgage life insurance provides a financial safety net for your family in the event of an untimely death. A good mortgage life insurance policy leaves your family with non-taxable funds that cover a range of expenses such as your mortgage, personal loans, living expenses and funeral costs.
What Are My Options For Insuring A Mortgage?
What Is The Difference Between
Mortgage Life Insurance and
Credit Life Insurance?
What Is The Difference Between
Mortgage Life Insurance and
Credit Life Insurance?
Mortgage life insurance provides a financial safety net for your family in the event of an untimely death. A good mortgage life insurance policy leaves your family with non-taxable funds that cover a range of expenses such as your mortgage, personal loans, living expenses and funeral costs.
There are significant differences between Mortgage Life & Credit Life insurance policies. Where you purchase your insurance has major impacts on your monthly premiums rates, the pay-out amount you’re entitled to, who your beneficiary is, and how your money is spent.
You have the option of purchasing mortgage life insurance through your lender (Credit Life Insurance), or through an independent insurance broker (Mortgage Life Insurance). A mortgage life insurance policy through an independent insurance broker is recommended by most financial advisors.
There are significant differences between Mortgage Life & Credit Life insurance policies. Where you purchase your insurance has major impacts on your monthly premiums rates, the pay-out amount you’re entitled to, who your beneficiary is, and how your money is spent.
Do You Already Have Mortgage Insurance
With Your Bank Or Credit Union?
Will You Even Be Paid Out?
Did you know that there is a high chance that your policy won't even be paid out when you die?
With Credit Life Insurance from the bank or credit union, they underwrite their policies after you've died, and take into account pre-existing health conditions to determine whether or not your policy will be paid out.
Take our survey to see how likely you are to have your claim be approved.
How You Can Save Money On Mortgage Life Insurance
Getting You More In The End
We all love finding easy ways to save money. With the difference in what you pay for premiums between the Banks and a Independent Mortgage Brokers, you would be amazed at just how much you can save in the long run.
Check out this video where I compare the insurance premiums that you would pay a Bank vs a Licensed Insurance Professional (like myself).*
*The numbers used to represent the bank are strictly estimates and may not accurately reflect your specific situation.
Ready To Discuss Your Mortgage Insurance Options?
Buying Your First Home?
If you are exploring the options of purchasing your first home, we've put together a detailed guide outlining all of the things that you need to consider, including Mortgage Life Insurance.
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Why Worb Financial?
Custom Solutions Tailored To Your Needs
We do not believe in a "one-size fits all" approach to Insurance, and will always bring you the best options for your unique situation... Even if this means recommending another provider.
Family Owned & Focused
We are a small team of dedicated professionals who treat each and every client like they are family. No matter what, we will help you understand your options and most importantly the importance of life insurance.
Canada-Wide Service
Licensed in Manitoba, Ontario, and British Columbia so we can serve you best no matter where you are.
LIFE INSURANCE
Life is unpredictable and amazing. We have the skills and knowledge to help you discover the best options and coverage.
EMPLOYEE BENEFITS
We’ll assess your companies needs and help you pick the right coverage to keep your staff happy.
FINANCIAL ADVICE
While you may have an idea of where you want to invest your money, it’s our job to know.
CRITICAL ILLNESS INSURANCE
Health risks are real, which means it’s important to be covered and prepared. While it’s not ideal to think about, it is important.
About Blair
Blair Worb
Blair Worb, Worb Financial’s CEO and owner, has been practicing life insurance for over 27 years and opened Worb Financial in 2000. Blair tenaciously seeks the best solutions and solves problems for his clients. He assists individuals, groups, and small businesses, providing employee benefits consulting for companies ranging in size from 3 - 100 employees.
Our Recent Articles On Mortgage Life Insurance
After getting approved for your mortgage, most banks require you to purchase insurance if you put down less than 20%. Many see having insurance as being a smart move, even if it isn’t a requirement. Still, it’s reassuring to know if something happens and mortgage payments can’t be made, you’ll still be covered.
The bank will most likely offer you their most convenient or bundled insurance policy and simply adds it onto your mortgage payments. This convenience, however, often comes with big costs.
The reality is, you can choose where to get your insurance anywhere you wish, and often with a more favourable policy, and at a cheaper price. The banks understandably don’t usually inform you of your outside options.
Though the chance of death in your 20’s and 30’s is fairly low, as you enter adulthood and take on more debts from things like a mortgage, a car, or education, you should be asking yourself “what debt will my spouse or family be stuck with if I die?”
After getting approved for your mortgage, most banks require you to purchase insurance if you put down less than 20%. Many see having insurance as being a smart move, even if it isn’t a requirement. Still, it’s reassuring to know if something happens and mortgage payments can’t be made, you’ll still be covered.
The bank will most likely offer you their most convenient or bundled insurance policy and simply adds it onto your mortgage payments. This convenience, however, often comes with big costs.
The reality is, you can choose where to get your insurance anywhere you wish, and often with a more favourable policy, and at a cheaper price. The banks understandably don’t usually inform you of your outside options.
Though the chance of death in your 20’s and 30’s is fairly low, as you enter adulthood and take on more debts from things like a mortgage, a car, or education, you should be asking yourself “what debt will my spouse or family be stuck with if I die?”
Read our article for more information.
The bank naturally tries to sell you their in-house credit-life insurance, conveniently bundling it into one mortgage payment and ready for you to sign on the dotted line after approving your mortgage. But hold on. Is insurance through the bank the best choice?
The bank naturally tries to sell you their in-house credit-life insurance, conveniently bundling it into one mortgage payment and ready for you to sign on the dotted line after approving your mortgage. But hold on. Is insurance through the bank the best choice?
Ready To Discuss Your Mortgage Insurance Options?
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