If you have ever applied for a mortgage, your lender likely offered you the option of purchasing life insurance to cover the mortgage. While it can be prudent to initially take out mortgage life insurance to address any coverage gap, it is worthwhile to consider replacing the mortgage life insurance policy with personally held coverage as the next step.
This month, we explore the major differences between mortgage life insurance and individual life insurance. Whether you’re a first-time home buyer or a seasoned real estate investor, it pays to explore your options.
Mortgage Life Insurance vs. Individual Life Insurance
When does underwriting occur?
Who owns and controls the insurance policy?
How long does the coverage last?
How do the costs compare?
If you are considering cancelling a mortgage life insurance policy in favour of an individual life insurance policy, please consult with a qualified insurance advisor first.
Odlum Brown Financial Services Limited is in the business of caring for your financial well-being, and insurance can be an important component to protect your plans. If you would like more information regarding life insurance or other insurance topics, please contact us through your Odlum Brown Investment Advisor or Portfolio Manager.
Odlum Brown Financial Services Limited (OBFSL) is a wholly owned subsidiary of Odlum Brown Limited offering life insurance products, retirement, estate and financial planning exclusively to Odlum Brown clients. OBFSL offers a variety of coverage options from many of Canada’s top insurance companies tailored to suit clients’ individual needs. Our licensed professionals are here to help you assess your position and then implement customized recommendations to meet your individual circumstances and needs. For more information, please contact your Odlum Brown Investment Advisor or Portfolio Manager.