There are the three main reasons why individually owned Life Insurance beats Mortgage Insurance in terms of value and flexibility:

• The death benefit amount remains level, instead of decreasing with the balance of your mortgage!
• Your family or business can be the beneficiary, as opposed to the bank!
• Your chosen beneficiary has the freedom to use the money at their discretion! The money can be used to pay off the mortgage and/or any other debts, it can be used to pay for living expenses, or whatever else is deemed a priority.

Your home is one of the most expensive and sentimental purchases you may ever make. Accomplish Insurance in Kelowna believes protecting this investment from the financial consequences of an unexpected death, illness, or disability is essential. There are a variety of solutions available and we’re here to help you make the right choice for you and your family.

Many new homeowners or those in the process of renewing their existing mortgage may be offered mortgage life insurance through their lender or broker. We recommend homeowners start out with this type of policy, if they don’t already have some individually owned life insurance in place, because it is better than nothing and easily obtained during the property buying process.

Homeowners should likely then transition to an individually owned life insurance policy because it provides much more value and flexibility! Though there are more medical questions to answer, the bit of hassle is worth it. And for those younger than 45 the process is continually getting easier. Most major insurance companies no longer require blood or urine testing for amounts less than $500,000 or $1 million.

Both mortgage insurance and life insurance help ensure loved ones left behind are not faced with a stressful financial situation. It is our job to explore why individual life insurance coverage might be the better option.

As mentioned above, mortgage life insurance is tied to the balance of your mortgage and therefore, the coverage amount decreases with the balance of your mortgage. But while the benefit amount decreases, the premium you pay does not. What’s more, this type of coverage only provides peace of mind around your mortgage, nothing else. The bank ends up getting the benefit of your coverage by default.

In contrast, individually owned life insurance is not linked to your mortgage and therefore, the amount of life insurance you were approved for at the time of purchase remains level. Simply put, your family gets more money that they can do with it as they wish!

Finally, aside from being better overall coverage, individually owned life insurance is simply cheaper for most people, especially healthy women. This is because mortgage coverage doesn’t differentiate by gender, smoking status, or health status. A healthy 37 year-old female marathon runner is a lot less or a risk than a 39 year-old male overweight smoker, but under mortgage life insurance they pay the same rate.

Individually owned life insurance policies are flexible and designed to meet your changing lifestyle. Our team is here to help you every step of the way! Accomplish Insurance is your Kelowna life insurance provider. We are happy to explain the variety of choices available in order to customize a solution that helps you sleep a little more soundly.