Mortgage Life Insurance – Ottawa, Ontario
A mortgage life insurance policy offers peace of mind. It is specifically designed to facilitate the repayment of a mortgage in the event that the mortgagor dies. In this situation, the policy normally would pay out a capital sum sufficient to cover the balance of the mortgage.
When purchased, the insurance coverage is set at the outstanding capital amount remaining on the mortgage at that point in time. The policy’s coverage extends up to the date the mortgage is scheduled to be repaid in full. At the outset, the value of the insurance is calculated to decrease in accordance with the diminishing capital amount of the mortgage. Note that the insurance normally adheres to the original schedule for the mortgage repayment, and does not readjust if the policyholder’s mortgage repayments are not keeping pace.