Insurance for your Mortgage?
When you are purchasing a home you are essentially making the biggest purchase of your life. This can be an overwhelming and stressful time with a lot of things to consider. There are usually so many questions you have but not a lot of answers to them. In order to find the correct answers, you need to ensure you are asking the right questions especially when it comes to things like loan insurance. Here are three common myths about loan insurance:
1.I already have life insurance, so I don’t need coverage in case of death
It is important that you protect your family in the event of your death. When you decided to take out a mortgage it is essentially the biggest loan of your life. In the event that you may pass away, you want to ensure that doesn’t create a financial burden for your family when you are gone. By taking our loan insurance on your mortgage it would allow for your mortgage to be paid off in full in the event of your death.
2.I’m young and I’m healthy; I don’t need insurance
Even if you are young and healthy it is still a good idea to think about and truly look into taking out loan insurance for your mortgage. Getting sick is not the only thing you need to think about as it is possible for accidents to occur. If you take out this loan insurance it will allow you to not get into financial trouble if something were to happen. This is something which is important to do especially if you are just starting out and buying your first home.
3.Loan insurance is too expensive
Many believe that insurance is simply too expensive so what is the point of even getting it if you are just going to have to pay more money for something you may never need. However, that key aspect to this myth is that you MAY not need it – but what happens if you do end up needing it but you don’t have it?
Loan insurance might be a good idea for you because your premium is never higher than what it needs to be. This means that your premium aligns with your mortgage balance. As the mortgage balance drops so does your premium.
It is important that when deciding whether to get loan insurance for your mortgage you understand that if you pass on insurance, you’re taking a chance if something goes wrong. Regardless you should do research on taking out loan insurance on a mortgage before making your final decision. Ask the right types of questions in order to get the appropriate answers to make the right decision for you.
*Ideas taken from this Royal LePage website blog: https://royallepageleadingedge.ca/2017/08/14/4-myths-about-loan-insurance-for-your-mortgage/