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Shelter your shelter

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Your home is your shelter and so much more: Not only is it very likely the largest purchase you will ever make, it’s the comforting and comfortable centre of family life and your family’s future -- and you need to protect it. The lender’s mortgage insurance is easy protection – a simple add-on to your mortgage – but lender’s insurance may not be the best way to shelter your shelter. The personal insurance option could be a better fit for you.

1. You own the policy and designate the beneficiary
With mortgage insurance, the lender is the owner and beneficiary and is entitled to receive the full death benefit. There are no amounts that would be paid to your family.

2. Your coverage will not decrease
Your personal insurance coverage remains level as your mortgage decreases. With mortgage insurance, you are covered only for the declining balance while continuing to pay the same, or perhaps higher, premiums.

3. Your personal insurance continues after the mortgage is paid
With mortgage insurance, the coverage expires when the mortgage is paid off.

4. Only you can cancel or make changes
Your premiums are guaranteed for the life of the plan and you can make changes as your needs change. On the other hand, the lender may change the premium or cancel a mortgage insurance policy at any time.

5. Your coverage stays with you if you move
Personal insurance is portable but in most instances, you may not be able to transfer mortgage insurance to a new mortgage or new lender and need to re-qualify for new coverage.

6. Your coverage is confirmed when you apply
Mortgage insurance may assess your eligibility only when you make a claim, leaving you unsure of your coverage. With personal insurance, your medical history is reviewed before the policy is issued – you’re assured that coverage will be in place when you need it.

Insurance is an important component of your overall financial plan and like your financial plan, the insurance you choose should be a perfect fit for your unique needs. Discuss your options with your professional advisor to ensure your plan provides the right protection for you and yours.

This column, written and published by Investors Group Financial Services Inc. (in Québec – a Financial Services Firm), and Investors Group Securities Inc. (in Québec, a firm in Financial Planning) presents general information only and is not a solicitation to buy or sell any investments. Contact your own advisor for specific advice about your circumstances. For more information on this topic please contact your Investors Group Consultant.

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