Ottawa Investment Advisor John Bruce

Why You Shouldn’t Get Mortgage Insurance

March 26, 2010

When you get a mortgage, one of the products a bank will offer you is a product they call “Mortgage Insurance”. They make it seem so simple, and at the time of taking on the huge new debt, many people feel good that if they die their, spouse will get their mortgage debt paid off and the house clear and free.

But think again before buying into this policy. Mortgage life insurance generally only covers the outstanding principal on a mortgage should the policy owner pass away. The premiums stay the same even as the mortgage reduces as you pay it off. That translates into same cost with reducing benefits for the term of the mortgage. What is worse is that if you get a new mortgage, lets say five years later, in the eyes of the risk underwriter, you are now 5 years closer to the grave and a new policy will likely cost you more then the last one.

Solution: If you decline mortgage life insurance and shop around for a term life insurance policy, you can cover your family above and beyond the mortgage for a much reduced cost.

If you have any questions regarding Life, Sickness and Accident Insurance, or Life Annuities I am licensed to do business in Ontario. Getting a quote is as easy as making a phone call. Call me direct at 613-425-3732 or toll-free at 1-866-860-4190.

John S. Bruce
Ottawa Investment Advisor
Also licensed in ON, BC, AB, QC, NS
Mackie Research Capital
Direct Line- 613-425-3732
Toll Free- 866-860-4190

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