Mortgage Blog
Everything about Mortgage Creditor Insurance
November 21, 2024 | Posted by: Sarabjit Dhuna
Around 35% to 40% of the Canadian homeowners have Mortgage creditor insurance. this statatic shows the importance of the mortgage creditor insurance.
What is Mortgage creditor Insurance?
It is insurance that protect homeowner and their family for any unexpected event occur that impacts the ability to pay mortgage payments. It is also called Mortgage protection insurance. In general insurance, it usually pays to beneficiary but in this mortgage creditor insurance, it attached with mortgage balance.
There are Different coverage in Mortgage creditor insurance
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Life insurance
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Disability insurance
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Critical illness
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Job loss
Advantages of Mortgage creditor Insurance: -
Peace of Mind: - Mortgage creditor insurance makes sure that whatever balance is remaining in your mortgage will be paid to lender directly if the policyholder passes away
Illness and Critical injury: - Mortgage credit insurance ensure that if policyholder is unable to work due to critical injury and illness then this insurance can cover the mortgage payment.
Medical Exam: - there will be no medical exam for this type of insurance so, it will be easier to qualify.
Easier Process: - The application process is really simple and easier and it can be done with lender.
Disadvantages of Mortgage creditor insurance: -
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Lender will act as beneficiary not to your family members. So, it can be used for mortgage repayment only.
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Mortgage creditor insurance is expensive than life insurance
