Mortgage Insurance Coverage That Shrinks

My name is Taivi Tayler, and I am a practicing Certified Financial Planner in the Province of Ontario. I help home owners grow their wealth, and plan to protect their financial legacy.

One of the biggest misconceptions about mortgage insurance is that it protects the homeowner.



It really doesn’t. Let me explain. Let’s say you have a mortgage and you pay down some principal over the 5 year term. You obtained mortgage insurance. However, upon renewal of your mortgage, which is now less than where you started, you’ve aged.  Now that you’re 5 years older, you’re going to wind up paying more for your coverage and it’s covering less as you’ve paid down the principal. It’s so backwards.

A better solution is to have a life insurance policy.

You can have it at a fixed cost for 20 or even 30 years. You can name your beneficiary and regardless of what you do with your mortgage, your insurance coverage will not change.  If you start with $1million in coverage, and buy a term for 20 years, you will have $1million in coverage for the same price for 20 years.

Protect your beneficiaries and obtain real life insurance.

Reach out and find out how we can build your financial strategy to protect your beneficiaries. Tayler Insurance & Estate Planning Inc. We help home owners grow their wealth and plan to protect their legacy. Contact us to learn more.