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Is it worth getting mortgage life insurance?


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Hello everyone,
I'm from Ontario and I took a mortgage loan for $250,000 a few months back to pay my medical expenses. Due to extensive medical problems, term life insurance companies will not approve me for a policy. I want my wife and children to be able to stay in the home after I die.
I did some online research and found mortgage life insurance. It is a kind of insurance product that pays off a mortgage if the borrower dies. What is the typical cost of mortgage life insurance? Is it worth getting mortgage life insurance?
It would be nice to hear from your thoughts.

Thanks in advance!!

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Mortgage life insurance is the same as regular life insurance really. The only difference is that its designed to reduce the payout in line with your mortgage balance, which decreases exponentially. As a result its a bit cheaper because the provider will have less to pay out the longer you live, especially toward the end of the term.

You will run up against the same problem as all providers expect a medical questionaire on application and medical records which will likely result in a decline, or in a much higher premium.

Most mortgage brokers have the contacts and tools to understand what an insurers attitiude is to the conditions you have, as well as direct lines to insurance underwriter teams who can answer specifically about your condition that are likely well beyond a brokers comprehension. An example would be that a recent client had a common form of cancer as a teenager, and once we knew the type, stage and grade, we were able to establish which provider would offer the best terms before application, saving a lot of wasted time.

As a result i think it would be a good idea to speak with some mortgage brokers or protection advisors (some firms have seperate teams, others do mortgage and protection together neither are better or worse really) and have them take a look. Commissions for protection are very good, and linked to the monthly premium, so theres plenty of motivation for them to investigate and source you something if its possible, but expect to pay higher premiums, maybe 2-3 times the initial quoted prices.

043_logo_final_03.png.0cdf828351f81e6097208048ac2d018d.pngStuart Phillips

Independent, Whole of Market Mortgage Broker

AALTO Mortgages Ltd

Web  www.aaltomortgages.com

Email  sales@aaltomortgages.com

Call  020 7183 1101

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