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Do You Have Life And Disability Insurance Coverage For Your Mortgage?

Most people do not like to think of life and disability insurance, however insurance coverage is an important topic especially when it involves your mortgage. Whether you have had a mortgage in place for years or are in the midst of purchasing a new property, insurance coverage can be obtained anytime. There are basically four ways people cover their mortgages with life and disability insurance: 1) Through their employer benefits. 2) Individual term or whole insurance coverage plans set up through an insurance broker. 3) Mortgage insurance set up directly by the mortgage lenders. 4) Mortgage Protection Plan insurance coverage set up through Your Mortgage Contact Betty and Kevin. Each option has their advantages but some insurance plans may not be suitable in certain situations. We will go though each option individually:

1) Insurance coverage through your employer. This option is usually the cheapest but can be the most unstable. The instability is where you may find yourself with no life and disability coverage in the event you either lose your job or your benefits change with your employer. In today’s uncertain economic times, job stability and even changing benefits have become very common and can unexpectedly leave you in a position of losing your insurance. Also over time, employer insurance plans become more expensive as you age. Employer insurance plans are great because they are relatively inexpensive, however should not necessarily be the only insurance coverage you should rely on to cover your mortgage.

2) Individual term, whole and disability insurance plans set up by insurance brokers. The reason these plans are great are because long term coverage is provided for a stated amount of time with no change in the coverage amount. One negative to this option is the potential high cost. Another downside is having to decide on the term as what term do you choose when covering your mortgage? With mortgage amortizations up to 35 years and with some mortgages expected to last even longer, what term do you choose? Say you choose a 25 year term because your mortgage amortization is 25 years. But what if your mortgage takes longer than 25 years to pay off due to refinancing? To renew your insurance can be very expensive now due to your age. One positive aspect about these policies is that the application is reviewed and verified before insurance is granted to you. This is an extremely important point in the event a claim is made to have it processed as smoothly as possible. Individual term, whole and disability insurance plans are a very good option to have your mortgage covered however there may be challenges deciding on the type and amount of coverage to match your mortgage requirements.

3) Mortgage insurance offered directly through the lenders. As you may be aware, most lenders have life and disability insurance coverage specifically designed for your mortgage at quite affordable rates. These insurance products are great for covering you for the entire term of your mortgage and can be easily adjusted with any changes to your amortization or mortgage amount. One issue is that when you sign up for lender insurance plans you have to be extremely careful when answering the medical questions. There have been instances when claims have been declined due to medical issues that were not disclosed or thought to have been minor. The claims get declined because verification of your application, especially the medical questions, is not done until a claim is filed. In addition, lender mortgage insurance is not portable meaning in the event you lender is changed, you must re-apply for insurance. Lender mortgage insurance coverage is good product given that it is specifically designed for your mortgage but dealing with complicated forms with little guidance can cause future problems when a claim has to be made.

4) Mortgage Protection Plan insurance coverage set up through Your Mortgage Contact Betty and Kevin. This insurance is offered by Manulife Financial, a name that is recognized all over the world and known for providing great insurance solutions at affordable prices. This plan combines options 2 and 3 to give you the best coverage possible. It is specifically designed for mortgages as in option 3 but with your application reviewed upfront by insurance professionals such as in option 2 so when claims are made they can be dealt with smoothly. Getting coverage is as simple as filling out a one page application. We at Your Mortgage Contact know we are not professionals when speaking about insurance however you can call an experienced insurance agent to help you with any question you may have about the product at anytime. Once the application is completed we will send in your request. Your application will be reviewed by an insurance professional that will follow up with you to go over your application in detail to make sure no errors have been made when answering the medical questions and any changes in the coverage and costs based on your individual situation. You also may be required to have a blood test in some instances. Some extra benefits to this plan also include the following: 1) 60 day money back guarantee. This means if you choose to cancel coverage in the first 60 days from your application date for any reason, any premiums already taken will be fully refunded. 2) When a claim is made any mortgage payments due will be covered and paid for while your claim is being processed. 3) Coverage starts immediately your application is submitted. 4) Your insurance stays in place even if you change lenders.

Life and disability insurance coverage for your home is extremely important. You do not want to leave your family burdened with a large unmanageable debt load. For this reason, please review your insurance coverage and ensure you are fully protected. Please contact us if you require assistance with your mortgage insurance needs. We can either refer you to an insurance broker or set up the mortgage insurance for you through a mortgage protection plan.

Please contact Betty at 403-532-3927, e-mail, Kevin at 403-589-3021, or at our website:

Also please tell anyone you know that may be looking to purchase, refinance or early renew their mortgage as it may give you an opportunity to receive a $1,000 gift certificate of your choice. Click Here or open the attachment to find out further details.

Please click here if you would like to make any comments about the current or past newsletters as we appreciate any feedback. Also watch for our new and improved website in Summer of 2009.

Source: Prolink mortgage news letter