Most Canadians dream of buying a house or even a second property, such as a cottage or farmhouse out in the countryside. As research finds, the COVID-19 pandemic is accelerating this tendency. Since many companies have decided to migrate to remote work, Canadians are beginning to feel the need to invest in new or better homes, both to live and work. As a result, the real estate market is starting to sense a boom, especially the cottage market.
If you are one of the many Canadians that wish to invest in a new house, there are undoubtedly many questions and thoughts running through your mind. One of them, as we can guess, refers to Mortgage Insurance and its purpose.
That is more than reasonable! After all, the house you dream of buying is going to be one of the most important purchases you will make in your lifetime. It is crucial to protect it.
Our Mortgage Life Insurance plan has that purpose.
Yet, there are a lot of misconceptions when it comes to this type of insurance. Many people confuse it with Mortgage Loan Insurance, and other types of insurance associated with homeownership, which makes them feel insecure and skeptical about acquiring a policy.
Taking that into account, we created a quick guide that will help you understand what Mortgage Life Insurance is, how you can benefit from it, and how our simplified plans can do wonders for you and your family’s financial well-being.
What is Mortgage Life Insurance?
The definition is quite simple. Mortgage Life Insurance is coverage that you can acquire as a mortgage borrower. Its goal is to protect your family’s financial future, with coverage that pays off the mortgage balance if something unfortunate happens to you. This way, your family can guarantee that the house remains in their hands, with no need for financial stress.
Unlike Mortgage Loan Insurance, this policy doesn’t belong to your lender – it belongs to you. This is what makes private insurance more reasonable and adequate. Its goal is to protect you and the beneficiary (or beneficiaries) you choose, instead of protecting the lender’s interests.
At Mortgage Insurance Group, we care about your family and its future. That is why we created a simple, affordable and customized Mortgage Life Insurance plan that aims to spare you from worrying about hypothetical financial troubles. It could easily be the definition of peace of mind!
But do I really need it?
Chances are, you probably do! Mortgage Life Insurance will help you unlock the door to your dream home, and, most importantly, make the whole experience feel way safer.
Nobody likes to think about unfortunate events, but the truth is that no one is shielded from life’s unpredictability. Imagine that a severe illness, injury, or death restrains your ability to pay for the mortgage. How is your family going to manage the house payments? How will this burden impact their lifestyles and stability?
According to statistics conducted by the Bank of Canada, Canadians owe about $2.17 trillion in household debt, and more than 70% of that is residential mortgage debt. As it shows, sometimes it is hard to meet the financial responsibilities of owning a home, especially if something happens to the family’s breadwinner.
If you are afraid of putting yourself and your family through financial difficulties (or even of losing the house you invested so much time and money in), Mortgage Insurance is the smartest investment you can make.
Do we still need to convince you?
If so, don’t miss this list of eight benefits we gathered for you:
1. It helps you become a homeowner.
According to a survey conducted by Remax, only 45% of Canadians aged 18 to 34 are homeowners. And that doesn’t mean that they don’t want to own a house – it means that they generally can’t or are too afraid of the financial commitment it represents. This is something that Mortgage Insurance can help with.
Mortgage Life Insurance makes you feel safer and backed up. It gives you the peace of mind and security most people need to achieve before jumping into a significant life decision such as this one. So if what is keeping you from buying a house is the fear of putting your loved ones into financial distress, investing in Mortgage Life Insurance is the solution. This way, if something bad ever happens to you, your family’s financial stability will be protected.
2. Our plan protects you and your family – not your lender.
This is a very important difference that most people aren’t aware of. Insurance plans from your lender don’t protect you or your loved ones. Claims from these policies are paid directly to your lender or your bank. But not our plan. With Mortgage Insurance Group, the benefit of your policy goes straight to your beneficiaries and your beneficiaries only. And the best part is that they can use it in whatever way they decide. Besides helping pay the mortgage, the benefit can also pay for other extra expenses, such as college tuition or car payments. It is entirely up to them to choose how to manage and implement the benefit.
3. It allows you to transfer the insurance if you change homes.
Houses generally aren’t forever. Most adults change their residence at least once in their lives, usually to better accommodate the family’s needs. If this is your case, you don’t have to worry about changing your insurance plan. With Mortgage Insurance Group, your policy moves with you. Regardless of the state of your homeownership, your loan, or your personal circumstances, our policies remain in force as long as you need them to. So if you are one of those lucky Canadians that is now deciding to move to a cottage to enjoy a more peaceful lifestyle, your Mortgage Life Insurance plan can join you on the adventure!
4. It is more affordable than most people think.
When people think of insurance, they usually imagine a significant investment, that it’s not always worth the costs. And that is partially true.|
When you get Mortgage Loan Insurance from your lender, you usually face high premiums, especially if you are a new homeowner that provided a smaller down payment. On top of that, Insurance from your lender covers the balance of your loan solely.
With us, none of this happens. We want you to retain full control over the terms and coverage amount you need, which is why we created flexible and affordable plans that can be customized according to every client’s needs. No matter your circumstances, our insurance plans are designed to be adjustable and solely serve your family’s needs in the easiest and most affordable way.
5. We customized it according to your needs.
As we already mentioned, the best thing about our Mortgage Life Insurance is that it is made specifically for you. And that doesn’t just mean we remove the lender from the equation; it also means that we can customize the policy according to your real needs. We know that while a mortgage can be a very significant financial responsibility, it is by no means the only one you will have during your life.
To make you and your family feel fully protected in case of an unfortunate event, we created a Mortgage Life Insurance Policy that adapts to your present and future circumstances. You can choose the amount of coverage you require, the term you prefer (10, 20, or 30 years), and, most importantly, freely decide how your beneficiaries will use the benefit. With us, you decide what parts of your life are worth protecting, and you do so with flexibility and ease.
6. The coverage ends when you choose.
When you apply for an insurance plan from your lender, it typically ends when you finish paying your mortgage. It is a policy that declines in value the longer you own it. But our Mortgage Life Insurance plan doesn’t work like that. We offer an insurance policy that can keep you and your loved ones covered regardless of your loan’s remaining balance. That means that, even if your mortgage gets paid, you will still be protected by our insurance.
As life moves forward, you will probably have to deal with new financial obligations, such as college or caregiving tuitions.
Being covered with our plan can also support you with that, by giving you the security to face every new expense. Besides, if you are starting to think about building an estate for retirement, having insurance backing you up is an absolute must. In short, with us, you can be covered for as long as you need, so that you can enjoy a life free from worries!
7. You won’t need to go through medical exams.
Our Mortgage Life Insurance plans also feature an incredibly smooth application process that makes it easier for anyone to purchase an insurance plan, regardless of their health status or health history.
For those with medical conditions, such as diabetes or high cholesterol, a Mortgage Life policy can be a great alternative to traditional Life Insurance that uses health as a factor in pricing. As we don’t require any medical exams, you can quickly get the coverage you need without exposing your health status or pre-existing conditions. For us, nothing should get in the way of keeping your home in your family’s hands. So if you don’t want to go through the time-consuming hassle of getting a medical check-up, we will still offer you the coverage you need, without any restrictions.
8. It is very, very easy to apply.
The process of applying for an insurance plan is not exactly easy or fast. Frequently, it involves face-to-face meetings that can be very time consuming and endless amounts of paperwork. For many people, this is enough reason to give up on the idea of applying for insurance.
But luckily for you, we do it differently! At Mortgage Insurance Group, we make the most of our increasingly digital world by allowing you to apply for our plans online, from the comfort of your home. But there is more. With us, you will also skip the tedious and time-consuming paperwork that is often associated with the insurance process. Our team of friendly advisors will only ask you a few questions and advise you as fast and efficiently as possible.
“Mortgage Life Insurance made easy” is our motto, and we honour it by providing a fast and straightforward service that will help you get the coverage you want, with no waiting periods.
Here is why our Mortgage Life Insurance Policy might be the best for you!
At Mortgage Insurance Group, we care about you and your loved ones’ financial stability above everything else. Our goal is to ensure your ability to keep your home, not your lender’s interests. In order to do that, we designed an affordable and straightforward Mortgage Life Insurance policy that will fit your unique circumstances. We offer you a coverage amount of up to $1,000,000 that your family can use to pay the mortgage or any other expenses that could cause financial constraints. You can choose a protection period of 10, 20, or 30 years, with the guarantee of fixed premiums for the selected term length. In the end, some policies may be renewed or even converted to another insurance plan.
As we already mentioned, our Mortgage Life Insurance is easy to obtain, since you won’t need to fill any complex paperwork, schedule face-to-face meetings, or go through stressful medical exams. You only need to be a Canadian resident aged 18 to 70. Yes, that is all!
But even with all this simplicity, we understand that buying an insurance plan can raise many questions and insecurities. If you have any doubts or need us to assist you through the buying process, don’t hesitate to contact our team of experts. We will be delighted to guide you and make it easier for you to buy – and keep! – your dream house in security.