Mortgage Life Insurance vs. Personal Life Insurance
The Choice is Yours:
Mortgage Life Insurance
• The mortgagor owns your policy
• The insurance amount can only be the exact amount of your mortgage
• The mortgagor is the beneficiary
• Outstanding balance of the mortgage is paid upon death of insured
• Coverage reduces as the mortgage balance reduces but premiums are level
• You may need to requalify if your mortgage is refinanced or transferred - rate based on current age
• Coverage terminates when your mortgage is paid off
• Coverage is not portable if you change lenders. Submit new application based on current health and rates.
• Coverage is not convertible to permanent insurance
• If both insureds die together, only the mortgage balance is paid
• Generally, no distinction is made between smokers and non-smokers
Personal Life Insurance
• You own your policy
• You may select any insurance amount
• You name the beneficiary
• Proceeds are paid to the beneficiary upon death of insured
• Coverage may be maintained at original amount or reduced as you choose
• You may never have to re-qualify
• Coverage remains in place once your mortgage is paid off
• Coverage is portable if you change lenders - no need to re-apply to prove your insurability. You are protected from the risk of losing your insurance because of change in health
• If both insureds die together, both policies are paid (double coverage )
• Your rates will be based on your smoking status
information provided by: Cary Leung BA B.ED cary.leung@clarica.com