MORTGAGE DEFAULT INSURANCE OR MORTGAGE LOAN INSURANCE

Mortgage default insurance, commonly referred to as "mortgage loan insurance" and sometimes "mortgage insurance" helps buyers buy a home sooner and with a lower down payment. So if you have less than a 20 per cent of the purchase price of your home you'll have to purchase mortgage default insurance. With this type of insurance a home can be purchased with as little as five per cent down payment for qualified borrowers.

Keep in mind that mortgage default insurance does not protect you as the homeowner, it actually protects the mortgage lender should you default on your mortgage payments. Read more about mortgage default insurance and make an informed decision before your purchase.

Mortgage Protection Life Insurance

Mortgage protection life insurance, also called "mortgage protection insurance" or "mortgage life insurance", and sometimes even called "mortgage insurance" is type of mortgage insurance usually offered by banks, lenders affiliated with banks, and some other financial institutions. Policy terms and conditions may vary by province and by financial institution, but in general is not good protection for you or your family and you should not buy it.

These kinds of policies equal to the mortgage amount you are taking and only cover your outstanding debt, meaning the payout gets smaller and smaller as you pay off your mortgage, which means your mortgage protection insurance policy shrinks. On the other hand, your insurance premiums stay the same through the insurance term, which means your payments stay the same.

The policy payout under a mortgage protection life insurance is payable to the bank or some other financial institution to discharge the mortgage, not to your chosen beneficiary. In other words, it works great for the bank – but may not be the best plan for you and your family. Find out more about mortgage protection life insurance before you decide which option works best for your situation.

Personal Life Insurance

Personal life insurance is the best option for financial protection of you and your loved ones in case the unexpected happens. There are various options available if you plan to use personal life insurance as your financial protection. You can choose between different types like: term life insurance, permanent life insurance, whole life, accidental death, disability and critical illness life insurance etc.

Life insurance can provide coverage allowing your beneficiaries to take care of your outstanding expenses such as: mortgage, car loans, credit card debt or day-to-day living expenses. You can purchase life insurance from insurance or assurance providers. Learn more about personal life insurance, get informed about it, than and ask for professional help to find the most cost effective and beneficial options for you and your family.