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Mortgage Insurance

When you purchase a home, you want to make sure that tragic life events don’t get in the way of you paying off your mortgage.

Venture First Advisory has options for Critical Illness and Disability Insurance that include Mortgage Insurance. You can enjoy your new home with the security that, should the worst happen, you’ll be able to pay to maintain your home and focus on recovery. As an independent insurance advisory, we know where to find the best mortgage insurance offerings in Vancouver; we can find a plan that works for your needs, mortgage and budget.

When taking out a mortgage loan with a lender, you will typically be offered coverage called Mortgage Insurance.  Because the mortgage amounts are larger, and depend on your ability to earn an income, it could be financially catastrophic if you were not able to pay the contractual monthly amounts.  Reasons for inability to pay can include death or loss of income due to a disability or a critical illness.

There are three components to Mortgage Insurance and each serve a separate function.

Mortgage Life Insurance – Pays off the balance of your mortgage upon death

Mortgage Critical Illness Insurance – Pays a lump sum to either cover the mortgage balance or a number of mortgage payments to allow the borrower some financial breathing room should a critical illness occur, such as a heart attack or stroke.

Mortgage Disability Insurance – If you are unable to work due to a disability, such as a car accident, or even a nervous disorder, then the disability insurance would continue to pay your mortgage payment when you can’t.

Not all mortgage insurance is created equally, however.  Lender policies are easier to apply for due to a less stringent application process.  They will generally cost more than an individual policy and, more importantly, they are often harder to claim on.  The claims part is important to mention because many lender policies are post-claim underwritten.  This means that the insurer will do their due diligence on whether you qualify for the coverage only at claim time rather than at application time.  In contrast, fully-underwritten individual policies are harder to apply for since all the due diligence by the insurer is done at application time.  This generally results in lower premiums and a more straightforward claims process.

Some lenders will require that you carry mortgage insurance as a condition of approving the loan.  The secret is that you are not obligated to obtain this coverage through the lender though.  You can often purchase better and cheaper coverage through a licensed Advisor.

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    Mortgage Insurance


    When you take out a mortgage at a bank or credit union, you are typically offered a mortgage life, critical illness and disability package.  While these plans are easy to apply for, there are significant advantages to taking out an individual life, critical illness, and disability insurance package such as:

    • Lower cost
    • Level coverage vs declining coverage
    • Multiple coverages vs joint-first-to-die
    • Convertibility to a permanent policy with no medical
    • Portability between mortgages

    Types of Mortgage Insurance

    • Life Insurance only coverage
    • Life Insurance, critical illness, and disability package plans