When you buy your first home, you’ll probably be asked if you’d like mortgage insurance. But if you already have life insurance, do you really need mortgage insurance too?
Mortgage insurance pays off your mortgage if you die, so your family can still afford to live in the home. A term life policy can also provide that kind of protection, while covering your other life insurance needs too. So instead of taking out separate mortgage insurance, you could simply choose a term life policy with sufficient death benefits to cover all your mortgage and life insurance needs.
If you already have a life insurance policy, it’s important to check whether it’s sufficient to cover your new mortgage. If not, you can simply add an additional mortgage policy. Then when your home is eventually paid off, you can let the mortgage insurance expire and just keep your life policy.
Deciding how much insurance you need to cover both your mortgage and your life can be difficult. You can try one of the many free online insurance calculators, or we can introduce you to a trusted local insurance expert for a free consultation. Whether you end up with mortgage insurance, life insurance or both, you’ll have the peace of mind of knowing your family’s future is protected.
Guest blogged by Elise Hildebrandt, AMP Mortgage Associate Broker Lic #316103 @ The Mortgage Centre Brokerage Lic #31547, Saskatoon, Saskatchewan.