Frequently asked questions

Why do I need mortgage protection life insurance?

If you don’t own your home, you need a life insurance policy to protect your family from having to pay off your mortgage in case you pass away. This ensures they can continue living in their home without being burdened by debt.

What are two common types of mortgage protection insurance?

There is mortgage protection insurance, offered by lenders, and there is life insurance that can be leveraged as mortgage protection.

How can life insurance secure my share of the business I own if I pass away unexpectedly?

Using life insurance can help ensure a smooth transfer of ownership and provide liquidity for heirs, allowing your business to continue operating without disruption.

Can life insurance help us pay off debts and taxes associated with the transfer of ownership?

Yes, life insurance can help pay off debts, taxes, and other obligations, ensuring your partners inherit the assets you want them to have.

How can I contact you?

You can reach us by completing the online form. We are always happy to answer your questions.

What types of life insurance policies can I leverage for mortgage protection?

Life insurance may be in the form of term life insurance or whole life. Term life insurance can be a good choice for mortgage protection, as it provides coverage for a specific period (e.g. 15-30 years) and can be tailored to match your mortgage term.

Both life insurance and mortgage protection insurance provide financial protection for loved ones, however, there are key differences between them.

Life Insurance:

• Pays a death benefit to beneficiaries (e.g., spouse, children) when the policyholder passes away

• Can be used to cover funeral expenses, outstanding debts, and other final costs

• Often provides a cash value component that can be borrowed against or surrendered for cash

• May offer additional benefits, such as terminal illness coverage or waiver of premium due to disability

Mortgage Protection Insurance:

• Specifically designed to pay off the outstanding mortgage balance if the policyholder passes away

• Typically has a lower death benefit than life insurance, equal to the outstanding mortgage amount

• Often has a more limited range of benefits and riders compared to life insurance

• May have specific requirements or restrictions for coverage (e.g., age limits, health underwriting)

In summary:

• Life insurance provides broader financial protection and can be used to cover various expenses and debts.

• Mortgage protection insurance is specifically designed to pay off the outstanding mortgage balance in case of the policyholder’s passing.

Can I add riders to my life insurance policy to provide additional benefits?

Yes, some policies offer riders that can be added to increase coverage amounts or provide additional features (e.g. disability income benefit).