Knowing The Difference Between Mortgage Insurance & Individual Life Insurance

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    Knowing The Difference Between Mortgage Insurance & Individual Life Insurance

    A common – often unexpected – element of applying for a mortgage is the offer from your lender for mortgage insurance. While you may be familiar with the concept of both life insurance and mortgage insurance, you may not have realized that it was possible for the two to go hand-in-hand in a way that helps protect you and your family. 


    At first, your lender’s offer may seem like an obvious choice – sign up ahead of time for protection to ensure that should the unimaginable occur, you won’t leave your loved ones with a crushing mortgage debt while simultaneously losing the income that helped pay the monthly bills! 


    However, before you sign the dotted line, it can be helpful to be armed with the knowledge that there are multiple options out there. In fact, by forgoing the offer from your mortgage lender for insurance and choosing a policy with a broker, you can potentially receive a mortgage insurance policy that provides coverage for your family and your mortgage in ways your lender can never provide. 


    The data tells the truth. By taking a comprehensive look at the policies offered by lenders, banks, and Quebec’s leading life insurance providers, a non-smoking, 35-year-old female can save at least 55% on her life insurance policy when choosing individual life insurance over mortgage insurance. Not only that, the benefits she can gain over time far exceed those of a lender’s insurance! 


    Wondering about the different options available, and how you can learn more about the opportunities you have by setting up a mortgage life insurance policy through a Quebec life insurance provider? Here are the main differences between mortgage insurance that your lender may offer and the much more valuable policy you can receive through an individual life insurance provider.


    Mortgage Insurance – Big Promises With Little Result


    Taking out a mortgage is a huge undertaking, and throughout the process you are likely to wonder about how you will pay your loan back should the unthinkable occur. To help alleviate your fears, your mortgage lender may offer a mortgage insurance policy that offers protection from your greatest fears.


    Unfortunately, most mortgage insurance policies offer little in the way of the protection for your needs. At their most basic, mortgage insurance policies will offer the following:

    • Coverage for those listed on the mortgage documents only.
    • Insurance for the amount owed on the mortgage.
    • A decrease in coverage as the amount owed on the mortgage decreases.
    • Coverage only while you are overed by your current lender.

    As you can see, the benefits offered by mortgage insurance looks great on the surface, yet provides less and less coverage over time. Don’t let the lender fool you – in most cases, you can decline the offer for mortgage insurance and seek individual life insurance elsewhere. In fact, it is the far better option for protecting you, your family, and your home!


    Individual Life Insurance – The Coverage You Need


    While mortgage insurance may seem beneficial at the time of signing, seeking another option for life insurance can ensure that you and your family receive the coverage they need for years to come. 


    With an individual life insurance policy, you can create a protective financial net that compensates you or your family in the event that you develop a serious health illness, are disabled, or tragically pass away. With an individual life insurance policy in Quebec, you can experience the promised benefits of mortgage insurance and more:


    • Coverage for your entire family – not just those listed on the mortgage document.
    • Financial coverage for both your mortgage as well as any other debts that you may have incurred, such as credit card, car loans, and more. 
    • Coverage amounts remain the same over time, rather than being tied to the amount due on the mortgage note. 
    • Protection and continuation of your coverage – even if you change lenders.

    Discover The Life Insurance Policy You Need With InsuraBrokers

    As you can see above, the benefits you gain from an individual life insurance policy far outweigh and outlast the coverage offered by lender mortgage insurance. So how can you begin to take advantage of these coverage options from a reputable insurance provider?


    At, our team of insurance and financial experts has teamed up with more than 20 insurance companies across Quebec to create the most comprehensive list of individual life insurance policies available today.


    By completing our online form on the right, you can benefit from the expertise of our partners across Quebec.


    Are you ready to ensure that you and your family are protected from the unexpected with benefits that are truly beneficial? Visit InsuraBrokers online today to learn more about individual life insurance policies, and how you can start a conversation about a comprehensive policy today. 

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