Mortgage Life and Disability Insurance

Mortgage life insurance is a type of insurance coverage offered by many mortgage lenders as well as independent mortgage insurance companies that provides homeowners with insurance coverage that generally pays out the remaining mortgage amount at the time of the policy holder's death. Just as you would with any other insurance policy, mortgage life insurance policies involve paying a monthly premium that is based on age and health, as well as the size of the mortgage being insured.

Mortgage life insurance functions as a declining balance, meaning that as you pay down your mortgage, the value of your insurance payout decreases --simply because the mortgage on your home is smaller. However, many mortgage life insurance policies are advantageous, as they provide relatively low cost coverage and fixed premiums for 10 years.

Generally, when deciding if mortgage life insurance is a good choice for yoru family, consider your situation as well as the 'what ifs' that could arise in the forseeable future.

For more information about mortgage life and disability insurance, or to get a mortgage with life and/or disability insurance contact one of the qualified mortgage professionals at Alberta Mortgage or Apply Online.