Common sense tells us to purchase home insurance so if anything such as a fire should happen you are protected by your insurance. What if something should happen to you and you are no longer able to make your mortgage payments? This is where Mortgage Life and Disability Insurance comes in. Though it may seem like one more bill you have to pay it can be just as important as making your actual mortgage payments.
These products are offered to you by your bank or lending institution. Many people see these as added cost they do not need. This is simply not true. If something should happen to you then how are the mortgage payments going to be made? If something happens and you are no longer able to work and gain the income you have now, what happens then?
Mortgage Life Insurance, when purchased directly from a lender, will usually cover the existing balance of the mortgage should something happen to you at the time it happens. What does this means? If something should happen to the mortgage holders, the balance will be paid out in full and no mortgage will be left owing on the home. This is a great option if you have had difficulty getting a full life insurance policy in the past. With this there is a small questionnaire and most people are approved for the coverage. So long as you are not currently diagnosed with a terminal illness there is a high chance you will get approved.
Mortgage Disability insurance will help cover mortgage payments should something happen and you are no longer able to work. This coverage usually has a time limit or amount attached to it. Again if you have had difficulty in the past getting personal insurance then this is a great option.
The real question is should you take what the lender is offering you or shop around for other coverage. If you do not have any existing coverage than the answer is YES. Take the coverage, get approved, and then go shopping. You want to have your mortgage covered from before you make your first payment. This way, IF something should happen, you ARE covered. You can cancel the coverage from the bank at any time.
Though being covered for existing balances in the event something should happen is a good plan, it is a better plan to shop around and get full life and disability insurance. If you know you have had difficulty in the past, at least you can have your balances covered.
Another thing to keep in mind, is that many policies offered by lenders are not fully approved until after something has happened. Therefore make sure you fully understand what you are signing up for and that you are shopping around to see if you can get better coverage.
You can speak to any member of Team Jardine, we are all here to help and guide you in the best direction for your situation. Call us today should you have any other questions and a member of Team Jardine would be happy to assist you.