As a homeowner, you’ve made a significant investment, and you’ll want to protect it for your family. If anything should happen to you, will they be able to make the mortgage payments? Could they lose the home? The last thing you want is to add stress to your loved ones when they are grieving, which is why you need to carefully consider buying life insurance and talk with a life insurance broker.
Why get life insurance?
There are many reasons people consider having life insurance. The most significant one is if they have a family that will have to bear the burden of paying for the mortgage on their own. This could be a spouse, partner, or children. In case you are severely injured, diagnosed with a critical illness, or pass away, having life insurance means that your family won’t have to stress over the loss of income. Buying a life insurance policy also provides you peace of mind knowing that your loved ones will be taken care of and won’t have to lose their home.
Types of Life Insurance for Homeowners
When you do decide it is time to get life insurance, there are some different types of coverage you’ll have to choose from, such as:
Mortgage Life Insurance
This is coverage you can get when you borrow money to buy your home. The policy will either pay down or pay off your mortgage if you pass away. Many lenders will offer mortgage life insurance when you are approved for the loan. It protects your family and, also, the lender’s investment. They can be sure they’ll get their money back even if a tragedy strikes.
Term Life Insurance
These policies are temporary and often cost less than other types of insurance. You can have coverage for a specified amount of time, for example, the life of your mortgage. You’ll be able to renew the policy when the time comes. With term life insurance, your premiums will increase as you get older.
Permanent Life Insurance
When you buy permanent life insurance, the coverage does not need to be renewed. The premiums can be higher when you are younger, but get lower as you age. Coverage will stay the same throughout your life.
Universal Life Insurance
This policy is more flexible than permanent life insurance, and provides lifetime coverage for your peace of mind. Depending on the policy you select, the premiums could stay the same from year to year, or they may increase as you get older.
If you’re considering buying a home or already own one, talk to a life insurance broker in Ontario to find out if there is a policy that can offer you extra protection in case of a tragedy.
If you are interested in learning more about life insurance for your mortgage, call Northwood Mortgage at 888-492-3690 or contact us here.
