Life insurance for first-time home buyers: why you need it

Picture this: You're standing in front of your new home, keys in hand, and a wave of accomplishment washes over you. The house represents more than just a place to live—it symbolizes your hard work and determination.

Amidst the excitement of finding the perfect space and navigating the complexities of mortgages and inspections, buyers should prioritize one often-overlooked aspect: life insurance for first-time home buyers.

As you gaze at its sturdy walls and imagine the memories waiting to be made inside, consider this. Life insurance can be the safeguard that ensures your loved ones continue to cherish this home, even if life takes an unexpected turn.

What is the difference between life and mortgage insurance?

Imagine life insurance as a safety net woven to protect your loved ones should something happen to you. Life insurance's primary purpose is to help ensure your beneficiaries are cared for in the event of your death. 

Whether paying off the remaining mortgage balance, replacing lost income, covering daily expenses, or securing long-term financial stability, life insurance helps ensure your family's dreams and plans remain intact, even in your absence.

Meanwhile, mortgage insurance solely safeguards your mortgage. Obtaining insurance is often advised when purchasing a home and securing a mortgage. However, unlike life insurance, mortgage insurance protects the mortgage lender's interests rather than yours.

Why choose life insurance over mortgage insurance

When you buy a home and sign your mortgage insurance plan, you protect your lender or bank, not yourself and your loved ones. When you buy a home and sign your mortgage insurance plan, you are protecting your lender or bank, not yourself and your loved ones. 

There are a few reasons why getting a life insurance plan over mortgage insurance makes more sense. 

The payout from mortgage insurance decreases as you pay down your mortgage balance. For example, if you have $100,000 left on a $400,000 mortgage, your policy will only cover the remaining $100,000. 

On the other hand, life insurance provides a stable, predetermined death benefit that remains unchanged over time, ensuring consistent financial support for your beneficiaries.

Mortgage insurance is also tied to the life of your mortgage and terminates once the loan is paid off or refinanced. With life insurance, you can continue to renew your policy with term life insurance; that way, your coverage doesn't end. 

Finally, unlike mortgage insurance, which is tied to a specific property and does not transfer if you move or refinance, life insurance stays with you regardless of where you live or the properties you own.

Why get Better Mortgage Protection?

When buying your first home, you need to consider what policies suit you the best. With Better Mortgage Protection, you are helping protect your home, investment, and family.

With this policy, you aren't getting mortgage insurance; you're getting life insurance that helps cover your mortgage. 

Get Better Mortgage Protection today by booking an appointment with a licensed insurance advisor or calling 1-800-709-5809.

Questions about life insurance? To speak to a professional who can guide you to the right coverage from the right insurer at the right price call us at 1-800-709-5809 or email us at info@caaprotect.ca.