The Top 5 Reasons Why You Need Mortgage Protection Insurance by Jordan Thomson, MBI

The Top 5 Reasons Why You Need Mortgage Protection Insurance

Now that you’ve made the plunge into home ownership, it’s important that you protect your investment by protecting yourself and the ability to make your mortgage payments should something happen to you . When you’re caught up with the excitement of your new home, you aren’t necessarily thinking ahead to the possibility of injury or even death.  But this is exactly why you need to be protected because these things DO happen, leaving you or your family with a large outstanding debt that still needs to be paid!

Here are the top 5 reasons to invest in MPP mortgage insurance protection offered by your City Wide Mortgage Broker:

1) Disability Insurance– Statistically, over the lifetime of your mortgage, you are more likely to become disabled than you are to die. In this event, your insurance coverage will provide you with the security of paying your monthly mortgage payments for up to 24 months. Some insurance companies will not pay a Disability claim as long as the individual is able to do any kind of job.  However, with this coverage, you are covered for your own occupation in the event of Disability. This means, if you can’t perform the functions of the job you normally do, you will not be made to do a lesser job so the insurance company can avoid paying your claim.

2) You get Active Immediate coverage available right at the time of signing your mortgage commitment.  So, the moment you are incurring this large financial obligation, you have the opportunity to protect yourself with an insurance product that will cover the entire mortgage debt, plus up to 5% penalty and all discharge costs.  It will also make the mortgage payments for the entire time it takes for a Life claim to be adjudicated so anyone left behind can stay in the home and not worry or have any additional stress about having to cover these payments (no other insurance provider offers this feature).

3) “Forever Young”-. If you are someone that is going to buy and hold real estate you can really maximize the value of your insurance. This product has a feature called “Prior Coverage Recognition”. If you ever need to refinance and top up your existing coverage, you get to keep the original amount of your coverage at the original age when you first applied.  Only the topped up amount gets priced at your current age saving a lot of money and time. This is unlike Term insurance, where the moment the Term comes up for renewal the whole amount of the coverage gets re-priced at your current age, which gets a lot more expensive over time.

4) Portability- Our mortgage protection insurance IS portable so when you move, it can move with you! On the other hand, all Bank and Financial Lender insurance is NON-Portable, a retention strategy they use to lock you in.

5) Peace of Mind. Knowing that you and your mortgage obligations are covered in the case of disability or death provides security and less stress for you and your family.

At City Wide Mortgages, our brokers work hard to make your homeownership goals a reality and will look after you and your home every step of the way! By offering you the best products, market knowledge and service, we hope to serve you now and for generations to come.

Follow me@VanMortgages