These fixed premium plans are guaranteed for life. Many people opt for a permanent policy primarily to cover expenses upon death such as funeral costs, for example. This plan also frequently serves as a strategic tool to mitigate taxes (such as capital gains taxes or RRSP taxes). It also offers you the possibility of leaving an additional inheritance to your loved ones, if desired.

This is generally a more affordable option. This type of plan is designed to protect your family from your financial obligations. You certainly don't want to impose such obligations on your loved ones in the event of your untimely death. Additionally, the policy term (how long premiums remain locked in) is tailored to your needs. Although the minimum policy term is 10 years, options extend up to 40 years, ensuring flexibility to suit your specific situation.

Make the right choice to protect the well-being of your family by purchasing the mortgage life insurance best suited to your needs.

What is mortgage life insurance?
Mortgage life insurance, also known as mortgage protection insurance, is a type of term life insurance specifically designed to pay off or cover your mortgage in the event of your death. This can provide financial protection for your loved ones by allowing them to remain in the family home without the burden of mortgage repayments.

Is this the same as CMHC?
No, this is often known as mortgage insurance and provides financial security for lenders in Canada. It intervenes when a borrower fails to honor their mortgage payments. It is important to note that this insurance is mandatory when buyers deposit less than 20% of the purchase price of the home. It’s a way to help more people buy a property, while providing peace of mind for lenders. Mortgage life insurance is generally offered by the lending institution and constitutes additional insurance renegotiated at the end of the mortgage contract (generally every 5 years or the term of your mortgage). This often ends up costing the buyer more and more over the years as the insurance amount decreases over time with each payment you make. Also note that this is not an obligation; this insurance is offered by the lending institution as an additional product.

So what should I do?
This is where I come in. You are not required to take out mortgage life insurance through the lender, but it is still prudent to protect your mortgage investment. While lending institutions generally only offer a maximum term of 5 years on mortgage life insurance which must also be renegotiated, I can offer you a longer term policy where the amount of insurance does not decrease over time. Your insurance premium can also be set for the duration you want. Often, we are so confused by these insurance policies that we simply accept what the lender offers. I can help you understand the offer the lender is offering and guide you towards a better choice.

Whether you're re-evaluating existing mortgage life insurance or considering new options, I'm here to walk you through this process with a friendly attitude and expert advice.