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Mortgage Insurance in Alberta: Should you get a Bank or Individual Policy?

Written by Nerissa

Mortgage insurance in Alberta pays off your mortgage, or a portion of it, should you die (or, depending on the policy become severely disabled or develop a terminal illness). You’ll be offered this insurance by the bank that holds your mortgage. But did you know you have another option? An individual insurance policy can be a better option than the bank’s policy.

Bank Mortgage Insurance in Alberta: Pros and Cons

A bank’s mortgage insurance is quick and easy. You have a lot on your plate when buying a house.  The ability to sign a form and be done with the insurance part is very convenient. However, bank mortgage insurance is not portable.  If you renew a few years down the road with another bank, you have to get another insurance policy. Bank mortgage insurance in Alberta pays the bank – not you. You’ll still need a separate life insurance policy for your family’s needs should you unexpectedly pass or become disabled.

Individual Insurance for Your Mortgage in Alberta: Pros and Cons

Alberta mortgage insuranceYou have to go through an application process to get individual life insurance in Alberta. While most policies can be done easily over the phone or working with a broker online, there is still an investment of your time. However, an individual term life insurance policy is fully portable. If you renew the mortgage with another bank, your individual policy will still cover the mortgage. Since an individual policy in Alberta pays you, you can structure it to pay off the mortgage and take care of your family’s financial needs. You can also easily customize the policy with disability and critical illness riders to provide even more reassurance and protection.

An individual term insurance policy is very affordable, and you can even go further and insure your life and mortgage with permanent insurance. Permanent insurance’s premiums are higher than term insurance at the start, but remember – as you age, term insurance rates increase. Permanent policies, on the other hand, come with level rates and insure you for life, while also builds up cash savings.

Contact a Broker about Mortgage Insurance in Alberta

The bottom line is this: you have OPTIONS when it comes to mortgage insurance in Alberta. Before you decide if bank insurance or an individual policy is right for you, contact me to learn more about the flexible options that fit your needs, lifestyle and budget.


About Reassured

We work with individuals across Alberta to secure the best life insurance rates.

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