Life Insurance: A Good Choice to Protect Your Mortgage
If you’re buying your first home, or moving into a different one or negotiating a new mortgage, you will probably be asked if you want to purchase mortgage insurance so that your mortgage will get paid in case you or your spouse dies. Many Canadians do buy this insurance, which is typically offered by the mortgage lender. But is mortgage insurance really such a good idea, or is there an alternative?
Actually, you do have another option: individual life insurance. And when you purchase life insurance to protect your mortgage, you can gain some key advantages over mortgage insurance. Here are a few to consider:
Ultimately, the key difference between mortgage insurance and life insurance is that mortgage insurance covers a debt, while life insurance protects a person. And since people are more valuable than debts, you can infer that life insurance is more valuable than mortgage insurance. So the next time you’re considering purchasing a home or changing your mortgage, give careful thought to using life insurance to protect your mortgage — and a whole lot more.
*Edward Jones does not provide tax or legal advice. Review your specific situation with your tax advisor and/or legal professional for information regarding, or issues concerning, the tax implications of making a particular investment or taking any other action.
** Insurance and annuities are offered by Edward Jones Insurance Agency (except in Quebec). In Quebec, insurance and annuities are offered by Edward Jones Insurance Agency (Quebec) Inc.
Ryan McLellan, Financial Advisor
Edward Jones Barrhaven(613) 823-3404