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Forget Mortgage Insurance – Protect Your Everything With Life Insurance

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Buying a home has always been a big step – but in today’s market, it can feel like the commitment of a lifetime. And with a mortgage that typically takes about 25 years to pay off, it certainly is a long-term investment.

But, you’re a smart cookie. We know you did all the calculations and factored your mortgage into your monthly budget before you even bought your home, right? You made sure your mortgage payments didn’t exceed 30% of your household income and that you still had enough to spare for savings, unexpected expenses, and – yes – fun. Good job!

But… (Yes, there’s a but…)

Not to be a Debbie Downer, but here’s a very important question you may have never considered: What if you or your spouse were to die unexpectedly before your home is paid off? Could you afford the mortgage on a single income?

For the average Canadian, the short (and scary) answer is no.

The good news is, we aren’t trying to scare you – on the contrary, we wanted to let you in on a little secret that far too many homeowners are unaware of.

The right life insurance can act as income replacement in the event of a main wage earner’s death, meaning your mortgage could still be covered and your family could stay in the community they know and the home they love. Without going into debt.

”But I already have mortgage insurance.”

Here’s the thing: The mortgage insurance you purchased when you first bought your home protects the financial institution that provided you with the mortgage – not you and certainly not your loved ones.

Term life insurance, on the other hand, was designed to protect the ones who matter most to you. (And we’re guessing it’s not the financial institution.)

For the many other ways that term life insurance is a preferable option to mortgage insurance, as term 20 life insurance or term 30 life insurance can cover your mortgage and leave behind something for your loved ones.

Comparing life insurance vs mortgage insurance

Serenia Life Financial Term InsuranceMortgage Insurance
OWNERSHIPYou own and control the policy.The bank owns the policy.
AMOUNT OF COVERAGECoverage will never decrease and can protect more than just your home.As your mortgage decreases, so does the coverage.
PAYMENTPayments are guaranteed to remain the same for the term of your policyPayments remain the same for the term of your mortgage only.
INSURANCE PORTABILITYRe-financing your mortgage has no impact on your life insurance policy.Re-financing your mortgage may terminate your coverage.
FLEXIBILITYYou can use your insurance for a different purpose altogether.Insurance is used for mortgage protection only.
CONVERTIBILITYRegardless of your health, the policy can be converted from term to whole life without a medical evaluation.Not convertible.
BENEFICIARYYou choose your beneficiary. Upon death, your beneficiary receives the proceeds.The bank is the beneficiary and the death benefit is used to pay off the mortgage only.
SALES CREDENTIALSYou work with a financial services professional who is a licensed life insurance advisor, trained to understand your holistic financial needs.You work with a financial services professional who may no be licensed to sell life insurance, which can be an important part of a comprehensive financial plan.
ADDED BENEFITSYou automatically become a member, and are eligible for unique member benefits, including a free online will and more!None offered.
This information is general and subject to change. Contact your advisor for more details.

Ready to protect your mortgage, your home, and the people who matter most? It may be time to consider term life insurance.

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