Mortgage Life Insurance
Mortgage life insurance (MLI) is inexpensive coverage on your life which protects your family or beneficiaries by paying off your outstanding mortgage in the event of your death.
This type of coverage can be purchased through your mortgage lender directly or through an independent insurance broker. Be careful however, what we’ve learned is that if you opt for coverage through your lender they will only insure you for the outstanding mortgage amount, whereas an independent broker will insure you for a flat rate no matter what your outstanding mortgage is at the time of your death. Generally speaking there is not a substantial price difference in the coverages, but through an independent broker the coverage is much better.
Disability Insurance is important if your mortgage payments depend entirely or in part on your income. Disability insurance provides replacement income if an accident or illness prevents you from working. Most people who have health coverage through their employer will have a certain amount of this already, generally speaking however if you are self employed or a business owner with no insurance coverage this is a consideration in the buying process.