What Is Mortgage Insurance?
Mortgage life insurance (also known as mortgage insurance or creditor insurance) is a life insurance policy that pays off your mortgage balance to the lender if you pass away during the term of your loan. Most banks and lending institutions offer this coverage, but you can also secure a tailored policy through an independent broker like Punjab Insurance.
- Pays off your outstanding mortgage if you die
- Protects your family from losing their home
- Flexible, affordable coverage options
Mortgage Life Insurance
Why Is Mortgage Insurance Important?
Buying a home is one of the biggest investments you'll ever make. If you pass away, become critically ill, or suffer an accident, your family could be left with the burden of mortgage payments. Mortgage insurance ensures your home is protected and your loved ones can stay secure.
Key Benefits
- Pays your full outstanding mortgage balance
- Covers up to five years of accrued interest
- May pay any debit balance in your property tax account
- Early payout available in case of terminal illness (diagnosed within one year)
- Protection can start as soon as your mortgage is approved
- Joint/co-borrower coverage available
Mortgage Insurance vs. Individual Life Insurance
- Coverage Declines: Mortgage insurance coverage decreases as your mortgage balance decreases. Individual life insurance coverage stays level.
- Beneficiary: With mortgage insurance, the bank is the beneficiary. With individual life insurance, you choose the beneficiary.
- Portability: Mortgage insurance is tied to your mortgage and lender. Individual life insurance stays with you-even if you move, refinance, or switch banks.
- Convertibility: Mortgage insurance is not convertible to permanent coverage. Most term life policies can be converted to permanent coverage without a medical exam.
- Flexibility and Value: Term life insurance often offers lower premiums and more flexible coverage than mortgage insurance.
Why Choose Punjab Insurance?
Access to Canada's top insurers and competitive quotes
Expert advisors to help you compare options and choose the right coverage
Transparent advice on the pros and cons of each option
FREQUENTLY ASKED QUESTIONS
Frequently Asked Questions about
Mortgage Insurance
Who should consider mortgage insurance?
Anyone with a mortgage who wants to ensure their family can keep their home if the unexpected happens.
How much does mortgage insurance cost?
Premiums depend on your age, health, mortgage amount, and coverage type. We'll help you compare the lowest quotes.
Can I get partial coverage for large mortgages?
Yes, partial coverage may be available for mortgages over $500,000.
How do I get started?
Get a free quote or schedule a call with a licensed Punjab Insurance advisor for expert, personalized advice.
Keep your home safe for the people who matter most. Ensure your mortgage is covered so your loved ones can stay secure, even if life takes an unexpected turn.
Disclaimer: Information on this page is for general guidance only and not a substitute for professional advice. Please consult a licensed Punjab Insurance advisor for personalized recommendations.