Mortgage Insurance:

Latest posts

mortgage-life-insurance-canada-difference

Explained by an Expert: Mortgage Insurance vs Life Insurance

I’m going to look at how mortgage life insurance compares with regular life insurance. Mortgage life insurance is generally offered through a bank or a lending institution, and essentially, it is tied to your mortgage. One of the advantages of an individual life insurance policy is that it’s not tied to your mortgage. The coverage is portable; you can take it with you if you sell your home, and you choose your own beneficiary. You essentially own the coverage, and you can even have some ...
Continue reading
mortgage

Mortgage Insurance: 6 Must-Know Facts Before You Buy It

Insurance experts find some products more useful than others. For example: term life insurance, disability insurance, and critical illness insurance can change your life if you need the policy to pay out. However, mortgage insurance, accidental death insurance, and some other products fall into a category of "less useful products." This is because a carefully constructed life insurance plan can eliminate the need for some policies. For example, let’s take a look at mortgage ...
Continue reading

Average Size Mortgage in Canada Compared to Other Countries

At the end of 2015, the total Canadian mortgage debt stood at $1,262 billion. That puts Canada's GDP well above other G8 countries. The vast majority of Canadians are typically responsible borrowers with a strong financial strategy. With job losses and huge increases in house prices, some people find they have overextended themselves. However, it is important to put this into the proper perspective. More than seventy percent of Canadian household debt is the mortgage on the family home. ...
Continue reading
Record Debt Levels and Their Impact on Life Insurance Companies

Record Debt Levels and Their Impact on Life Insurance Companies

You’ve probably heard about how we’re dealing with record debt levels in Canada, but how does this impact life insurance companies and you as an individual or family? To help answer this question, we’ll take a look at how the debt level is calculated, how it affects Canadians, and how it impacts life insurance companies. How Debt Level is Calculated The two factors used in the debt level equation are household credit and disposable income. • Household credit: Credit such as ...
Continue reading
Insurance-Policies-Walk-Away-Thumb

6 Insurance Policies You May Need To Walk Away From

Contrary to what certain insurance brokers will try to get you to believe, buying an insurance policy for every occasion is not always a good idea. As everyone has a different need, it’s important to do some research and understand what the right type of insurance is for you. Taking out an insurance policy you likely won’t ever need is a waste of money and you would be much better off if you decided to invest that money elsewhere instead. There are also several types of insurance ...
Continue reading

Mortgage Insurance Pitfalls

If you're an avid reader of the LSM Insurance blog, you know we're not fans of Mortgage Insurance and neither, it turns out, is the Toronto Star's personal finance columnist, Ellen Roseman. In a recent article titled "Mortgage Insurance Policies May Not Cover Claims," she highlighted the danger of post-claim underwriting. This is when the policyholder has filled out their application and has been diligently paying their monthly premiums, but when they die suddenly, their family discovers ...
Continue reading

Are Homeowners Properly Insuring Their Increasing Debt Loads?

These days, it seems like debt is the norm. Instead of it being the "elephant in the room," it's all everyone talks about ─ the bragging rights one obtains from taking out a loan to buy a luxury car, or funding a vacation trip entirely on credit. According to a survey by Manulife Bank of Canada, homeowners are more comfortable with both holding and talking about their debt than their parents were. "Recently I've noticed people are happy to talk about their debt as if it's an achievement, ...
Continue reading

The Top 5 Life Insurance Loopholes with Ellen Roseman

Ellen Roseman gives us the lowdown on five life insurance loopholes. Life insurance is a difficult concept to wrap one's head around. But even when you think you have more than a basic understanding, insurance contracts are embedded with many loopholes and restrictions that often trip up consumers. As the personal finance columnist for the Toronto Star, Ellen Roseman has written about every one of them, so we invited her to take us through them all and share her candid advice on how to ...
Continue reading

Top 5 Life Insurance Mistakes

Life insurance is always a tough sell: an invisible product that the policyholder will never actually benefit from directly, and yet they still have to pay for it every month. But if you don't have it, you won't be able to make sure your family maintains the lifestyle they've become accustomed to or replace your income when you pass away. Although, just because you have life insurance, doesn't mean it's necessarily working for you in the right way. Since life insurance is such a complex ...
Continue reading

What Canada’s Financial Experts Say About Mortgage Insurance

We've investigated and advised against mortgage insurance for years here at LSM Insurance, and it mostly comes down to one dastardly component of how it works — post-claim underwriting. Mortgage insurance is typically sold by banks when you get your mortgage as a means to pay off your mortgage when you pass away. However, the approval for the policy is done after you've already been paying the premiums, and often, people are denied coverage at the time they need it because the ...
Continue reading