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Mortgage insurance is not mandatory … save it is!


st_title = “Mortgage insurance is not mandatory … save it is!”

Couple happy to realize that mortgage insurance is not compulsory
Since 2001, we have helped hundreds of thousands of Quebecers and Canadians find their insurance products at the best price.

Eh yes! Mortgage insurance is not mandatory to cover your mortgage in the event of disability! So what are the other options? To fully understand the situation, let’s look at a first aspect: the cost of mortgage insurance offered by the credit union or the banks.

Here’s a thought-provoking question (get out your calculator!):

In a couple, in the event of the death or disability of one of the spouses, is it preferable to insure their mortgage at 50%, or at 100%? Come to think of it, it costs tens of thousands of dollars to the bank or the caisse to cover the cost of life insurance and disability insurance coverage, but it is the client who is penalized, in the end, he who must pay the premiums as well as a considerably higher interest rate, because the cost for life insurance and disability insurance is added as a percentage on the mortgage.

To see more clearly, let’s take the following example:

If you pay $ 80 / month in life insurance for, say, twenty years, you will end up having shelled out almost $ 20,000., without even counting the increases in these insurance premiums! Something to give shivers down your spine …

Another example, that of a couple with group insurance at work when one of the spouses, temporarily disabled, receives two-thirds of his salary (not taxable) while his better half continues to work to meet the needs of the couple.

In such a situation, if we asked you if you would be able to continue paying off the mortgage, you would almost certainly say ” Of course yes, no problem! “.

In that case, why buy 100% disability insurance? Well for “disability coverage”, which can be summarized as follows:

According to your needs, disability coverage covers payments on a variety of debts such as credit cards (and their lines), personal loans, car rentals, leases, etc. You can furthermore choose what amount will be allocated to cover your debts, on a monthly basis.

Group life insurance to cover the mortgage

Group life insurance at work generally covers once the annual salary (at least), according to two types of life insurance intended to cover the mortgage:

1. Mortgage loan insurance

It is about a life insurance “which decreases”, of the mortgage type (like the cashier or the bank). The premium is added to the loan, as percentages.

2. Fixed life insurance (the most popular choice, and at the lowest cost)

Life insurance remains fixed and is in no way linked to the mortgage loan. You choose the beneficiary, who will receive all of the life insurance while paying the balance and thereby retaining the remainder of said insurance.

Note that the cost of fixed life insurance is usually the same as that of mortgage insurance (and which decreases with the loan).

What are the advantages of taking out a personal contract rather than taking out any cash or bank contract?

By leaving the caisse or the bank to take out another mortgage insurance, you will find that your loan is repaid faster. And why is this so, you will wonder (with good reason)?

  • Because the cost of your insurance will not be added to your interest rateresulting in a significant saving of thousands of dollars over the life of your loan.
  • Because’your state of health will be checked before acceptance of the contract, and not at the time of any claim.
  • Because you own your contract, that it is you who name the beneficiaries and that this insurance is in no way related to your mortgage.
  • Because you have the option to subscribe only to invalidity insurance, in the same way you can choose the amount intended to cover all your debts / loans monthly… Which the mortgage insurance of the credit union or the bank does not allow.
  • Because you have the possibility to subscribe to life insurance in the amount of your choice (unlike mortgage insurance from the credit union or the bank).
  • Because your life insurance can be transformed into permanent life insurance, without any medical evidence.

In closing, did you know that SoumissionAssuranceVie.ca is a neutral platform that acts as a premium comparator for about twenty years? Since 2001, we’ve effectively helped hundreds of thousands of Canadians find the best insurance coverage around., at the best prices!

And you, what are you waiting for to save? Call us at 1 844 285-5007 if you have any questions or for more information. We are here to help you!

st_title = “Mortgage insurance is not mandatory … save it is!”

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