Insurance policies are created to offer your family financial support and protection in case you die while the policy is in effect. If you’ve borrowed a large sum of money to cover a property purchase, there are a few options you can consider: you can choose a whole life insurance, a mortgage life insurance Canada or a cheap term life insurance. Let’s discuss each individual case.
With the whole life insurance, the policy remains valid for the duration of your life, as long as you pay your premiums regularly and without delay. The main advantage of choosing such a policy is the total character of the insurance; no matter when the unfortunate event happens, you family will receive adequate financial protection. The money your dear ones will receive will depend on the amount established when you signed the policy. Whole life insurance policies, unlike other limited policies, offer more flexibility and cover. For example, death is not the only clause which may be stated in the contract: the tuition of your children or retirement plans can also be part of the policy. The problem with this whole life insurance is that the premiums can be high and as you age they will get higher. Health problems can further add to the increase of premiums, so other options might be more adequate for your needs.
Here’s another possibility for you: mortgage life insurance Canada.This is a specific type of policy meant to offer your family or close ones protection in case death occurs before you manage to pay the mortgage. In case the borrower dies, the insuring company will pay the rest of the mortgage. Purchasing a property is an important decision, one which will have long-term consequences on your budget, particularly if you decided to get a mortgage. Mortgage life insurance Canada is necessary for each borrower, but the problem is finding amortgage life insurance Canada with low rates. With this policy you’ve got less flexibility that with the whole life insurance, because the rates you pay will depend on your type of mortgage and the amount borrowed. The favorable aspect of this type of policy is that the premium for the insurance company is included in the mortgage payment, so things are simpler when making payments.
Thirdly, you can consider a cheap term life insurance. This type of policy protects your loved ones in case you die within the term stated by the policy. A cheap term life insurance can be closed for a shorter or longer interval of time, depending on your needs. If you have a loan (other than a mortgage) and need insurance for the time you need to pay it back, a cheap term life insurance can be the best option for you. You can enter a policy for 1, 5 or even 30 years. Moreover, you can extend your policy if the initial one expired. All of these policies come with advantages, but only you can decide which one would best fit your needs.