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Know Your Options! Buying Term Life Insurance instead of Mortgage Life Insurance

When buying a home or renewing a mortgage, many people think they are obligated to sign up for their financial institution's mortgage life insurance. But it's important to remember that you have options.

Term Life insurance is a great alternative to your financial institution's regular mortgage life insurance because it offers you affordable premiums plus the following key advantages:
  1. Greater control for you and your beneficiary

    Mortgage life insurance bought from a lender will typically pay the death benefit to the lender at your death. Term Life insurance will pay the benefit to the beneficiary you choose (e.g., your spouse). This gives your beneficiary the freedom to choose how best to spend the money. For example, some may decide that paying down the mortgage is the highest priority, while others may want to use the money for a more pressing expense that arises at the time.



  2. Coverage that doesn't shrink with your mortgage

    The coverage amount under typical mortgage life insurance declines as your mortgage balance decreases. With Term Life insurance, your coverage amount remains the same.



  3. No need to reapply

    With mortgage life insurance, you have to reapply any time you switch lending institutions. But with Term Life insurance, unless you want to increase your coverage or terminate your plan, your policy is automatically renewed up to age 85 with no medical questions asked.

    Remember, when thinking about your mortgage, Term Life insurance provides you with options. You don't have to wait until your mortgage renews. Consider the advantages of Term Life insurance today.

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Individual circumstances may vary. You may wish to contact one of Manulife’s licensed insurance advisors or your licensed insurance agent if you need advice about your insurance needs.