You took the time to find the right neighborhood and the perfect home for your family. When it comes to protecting that investment should anything happen to you, it pays off to take a few more minutes to consider your options. Here are the differences between 20/20 life insurance and the mortgage insurance offered by the banks, and why you should opt for 20/20.
At AIME, we understand that your home is likely to be the biggest investment you’ll ever make, and you want to protect it. We also understand that you might be hesitant to purchase bank-issued mortgage life insurance because of its glaring limitations.
That’s why we’ve created 20/20 Mortgage Life Insurance. Designed by industry experts, we have used technology and product innovation to make insurance more affordable, understandable, and easy to purchase.
Advantages of a 20/20 mortgage life insurance product include:
- Access to those who might not qualify for other insurance products
- Being Canada’s first digitized, paperless mortgage life insurance product, it’s simple
- Providing lower premiums with a savings of up to 20%
- There is no medical underwriting required
- You have a choice of beneficiary
- The policy doesn’t need to be renewed and you don’t need to requalify with each mortgage renewal even if you change lenders
20/20 Mortgage Life Insurance BENEFITS You
At AIME, we pride ourselves on offering simple and transparent mortgage life insurance at affordable costs to help keep your family financially protected during some of life’s most difficult moments. From a quick application process to customized policies, we make it easy for you to find a product that works for you!
Want to know more?
What Are the Differences Between 20/20 and the Bank?
All forms of life insurance protect your family in the event of your premature death. They are meant to provide for your loved ones and give them the financial stability they require. But that’s where the similarity ends.
20/20 Mortgage Life Insurance
With 20/20 MLI, you own the policy. This means you choose the beneficiary and they, in turn, decide how to use the funds they receive from the payment. They might opt to:
- pay down debts
- cover living expenses
- invest in further education
- relocate the family for better opportunities
- pay off the mortgage.
The most important factor here is that they have the freedom to choose. With bank-issued MLI, the bank is the beneficiary, which means that the payout from your policy will go to them and not your loved ones.
20/20 Mortgage Life Insurance can be purchased for a term unrelated to the length of your mortgage. This means it doesn’t end when the mortgage is paid off.
During the course of your mortgage, it is likely you will need to renew the terms of your mortgage several times. You may even decide to move from one lender to another. The 20/20 MLI product makes that simple. You never need to requalify; it simply covers you and moves with you for the duration of your insurance term.
WHAT YOU NEED TO KNOW ABOUT SWITCHING MORTGAGE LENDERS
What about Bank Life Insurance?
This type of insurance protects the bank. You pay for the policy, but the bank owns it and the funds will only be used to pay off the mortgage. As you pay down your mortgage, your payment amount does not decrease, but the value of your insurance policy does – it will never pay more than the current amount owing on your mortgage.
Each time you renew your mortgage at the bank, you will need to reapply and requalify for the bank life insurance coverage. Because you will be older each time, with possible health changes, the cost of your coverage is likely to increase each time. If you choose to move your mortgage to another bank or lender, you will also need to reapply and requalify.
4 THINGS TO CONSIDER BEFORE BUYING MORTGAGE LIFE INSURANCE
Optional Additions to Your 20/20 Mortgage Life Insurance
Critical Illness Coverage
Critical Illness provides coverage in the form of a lump-sum payment of $300,000 when you are diagnosed with a specific critical illness that is covered by your policy. This payment can be used for a number of purposes, including:
- Supporting mortgage and debt payment
- Replacing lost income
- Covering the expense of special equipment
- Providing payment for home-based medical support
- Allowing you to maintain your standard of living
Disability Coverage
Disability Insurance provides a monthly benefit. You will receive a monthly benefit payment equal to your monthly mortgage payment at the time of your application, up to a maximum of $3,000. Your monthly benefit payment will continue each month, provided you remain totally disabled and up to a maximum of 24 months. The monthly benefit will not be reduced if you pay off your mortgage. You can use the monthly payment for any purpose while you recover.
Call Today
To find out more about our affordable mortgage life insurance rates and customizable policies, contact our licensed agents today at 1-844-974-2020 or fill in our online contact form.
