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How to select Mortgage Insurance that gives more benefits to you (rather than the bank)
You’d probably agree that your most valuable asset is your health, and tied to that is your ability to earn income. So if you weren’t able to earn your regular income, how would you get your mortgage paid for? Your work disability income insurance would likely not be enough to cover it, since it’s typically integrated (combined) with other programs like CPP, WCB & EI, is highly likely capped at a maximum percentage or amount, and is usually taxable.
But don’t rush into the mortgage insurance offered by your mortgage lenders, because getting your own plan – that is NOT tied to the mortgage, almost always gives you more benefits for you and your family, and is very often cheaper overall. This includes individual coverage to pay for your mortgage balance in case of unexpected death, or to cover your mortgage payments in case of disability (that is not integrated with your disability income from work, CPP, EI. WCB, etc).
See the comparison chart below for more information and a CBC Marketplace video on issues with mortgage insurance.
Medy, also known by her “proper name” Magdalena, is a Certified Financial Planner, Designated Accountant, trained life coach and has over 20 years experience in business and financial analysis. She also coached a leadership course for several years and completed the Coaches Training Institute Co-Active Coaching program. She brings all this together in educating and empowering her clients with creative strategies to help them achieve the life they want at retirement, reach their financial goals with freedom & ease, as well as to keep more of their hard earned money through their lifetime.
No blog post or online article could ever take the place of a one-on-one discussion with an experienced professional advisor. Even when responding to a reader question, the answers on this blog are intended as general information only. Don't rely on general information as if it were professional advice specific to your particular situation. Use what you read here as a starting point for your research and inquiries.