Blog Article

24 Feb 2023 | Life Insurance

MAKE LIFE INSURANCE WORK FOR YOU
PART 2. LIFE INSURANCE VERSUS MORTGAGE INSURANCE

Almost every week I get asked about the difference between Life Insurance and Mortgage Insurance.

The biggest difference is control of the money. With mortgage insurance should something occur, yes, the mortgage is paid off however your spouse and/or family do NOT receive any of this money. Effectively you are paying the bank or other financial institution to protect their money.

With Life Insurance, should something happen, your spouse and/or family receive ALL the money. What they decide to do with it is totally up to them. If they want to pay off the remained of the mortgage, great. If they decide to put money aside for education, investments, retirement, etc…great. The point is, THEY decide.

So, what is the right benefit amount? As a starting point, we know that you should have at least the amount owing on that large debt. Then, as written in Part 1, a percentage of the lost income of the spouse. The reason is that the normal ongoing bills continue (Property taxes, Hydro, Water, Credit Cards, etc.). Assuming that in the past the household expenses were shared, the survivor now must pay the entire amount from only their income.

Give yourself some breathing room. With the loss of a spouse and/or parent, you’re already under a lot of stress. Make sure money is not one of them.

When you decide to invest in a Life Insurance policy it’s important to understand what you’re trying to accomplish. If you want to make insurance work for you, we’re happy to help.

Benchmark Insurance Ltd, is a niche insurance agency providing Life, Critical Illness, Long-Term Disability, and Group benefits to individuals and businesses throughout Ontario. Please let us know how we can help. info@benchmarkinsurance.ca 647-955-1242

By: admin

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