Is mortgage insurance and life insurance the same?

The answer is NO. The only common thing is that someone needs to die in order to collect.

Mortgage insurance is usually offered by the banks. As you pay down your mortgage, your coverage amount decreases with it. When someone passes away, the balance of your mortgage is paid off. Ultimately, the beneficiary of a mortgage insurance policy is the bank.

Life insurance is usually offered by insurance brokers. With a term life insurance policy, you have a constant level of coverage for the whole term. So when someone dies, the family receives the payout and this gives them the flexibility of using the money to pay off debts, mortgage or anything else they would prefer.

When purchasing or refinancing your home, take the time to shop around for insurance  and compare.  It is best to some insurance then not to have any at all. Be an informed client.

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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