If you’ve been working to pay down your mortgage, then we’d like to offer you an important consideration.
Very likely, each month you pay for mortgage insurance.
Mortgage insurance generally pays off the remaining principal in the event of your untimely death.
Mortgage insurance example:
Home’s value: $400,000
Amount owing: $200,000
Monthly mortgage insurance payment: $150
In the scenario above, if something happened to you, the remaining balance of $200,000 would be paid off by the mortgage insurance.
What about your family left behind?
While having the mortgage paid off would relieve a significant financial burden, what about other expenses such as loans, children’s education funds or to help out with your family’s financial future?
There’s a better option: Term Life Insurance
Term life insurance often has a comparable monthly premium and it will not only cover the mortgage debt but also provides your family with a tax-free, lump-sum cash payment in the event of your death.
Term life insurance example:
Age of applicant: Under 45 years old
Term duration: 10 years
Death benefit: $500,000
Monthly premium: $40
In the above example, your family would have $300,000 cash available to them after paying off the mortgage debt: helping to secure their financial future. Depending on a person’s age and general health, a medical exam may not be required to obtain term life insurance.
It’s easy, it’s affordable and it’s an option that makes more sense if you have equity in your home. If you’d like more information about term life insurance options, please reach out to Martez Lambert, B.A., CPCA®, Senior Financial Security Advisor,
mlambert@easyinsure.ca or call: 519-563-7638