There’s nothing more important than family, and ensuring that the right insurance is in place to keep them protected in the event of the worst is key, however it can be easy to be misled. Traditional mortgage insurance for instance; a product that the bank would suggest a new homeowner get to protect their home, may not offer all of the necessary coverage and protection that is required.
Some points about traditional mortgage insurance to be aware of include:
“The payout from mortgage protection insurance shrinks with your mortgage
These kinds of policies only cover your outstanding debt, meaning the payout gets smaller and smaller as you pay off your mortgage. Insurance premiums, on the other hand, stay the same through the insurance term.
Your might get saddled with higher premiums when you renew your policy
With mortgage protection insurance, you’ll need to renew your policy at the end of your mortgage term. Your new premium will be based on your — now smaller — outstanding mortgage balance, but that doesn’t mean you’ll be paying less. Because you’re a bit older, your premium won’t necessarily go down — in fact, it may go up.
Your bank, not your family, pockets the payout
Assuming the claim goes through, mortgage insurance guarantees your family won’t have to worry about mortgage payments if you die or become disabled. Mortgage protection insurance means any payout will flow out to your mortgage lender, not to you or your family.” (Erica Alini, globalnews.ca)
We can offer a better and more tailored solution. Palladium Insurance can provide a more flexible life, critical illness and disability mortgage protection solution. With a policy from Palladium, you are the beneficiary. You can use your benefits as you see fit. Coverage is always portable and is non-cancellable. You are underwritten once at the time of your application. You never need to reapply. Premiums can remain level and guaranteed for the life of your coverage. If you sell your property, your coverage will remain unaffected. Contact us to learn more, and let us earn your trust.