When it comes to insuring your loans and mortgages, you have several options. Let’s take a closer look at how term life insurance could prove particularly advantageous.
In general, traditional credit or mortgage insurance only pays off loan balances in the event of death. The death benefit decreases as you repay your loan, even if the cost remains the same. The amount of coverage is not flexible and cannot be changed in the future, and cannot be converted to permanent life insurance. In the event of refinancing or changing lenders, existing coverage cannot be transferred and a new insurance application must be completed. The insurance policy and its rates can change at any time and once a loan is paid off, the life insurance ceases.
Term life insurance is an affordable solution that can pay a tax-free death benefit directly to your loved ones in case of death. These proceeds can be used to repay loans and mortgages, or any other family expenses. You can choose the amount of coverage that meets your needs, increase or decrease it in the future, or eventually convert it to permanent life insurance. The policy is automatically renewed at the end of the term and is unaffected by your loans and mortgages. The rates set when your policy is underwritten are guaranteed for the duration of the policy, as are the renewal rates.
A personal insurance application involves a more in-depth medical underwriting process, taking into account factors such as health, lifestyle and family medical history.
If you would like to look at your insurance options or be the owner of a personal insurance policy, ask us how term life insurance could help protect your family’s future. We can help you evaluate your long-term financial goals and determine which option best fits your unique needs and circumstances.
Virginie Benoit
Insurance Advisor
Alliance Wealth Management
Tel.: 705-753-2971 | vbenoit@alliancewealth.ca
Planning. Achieving. Together.
Alliance Wealth Management is a program provided by Aviso Insurance Inc. offering financial planning, life insurance and investments to members of Caisse Populaires and their communities. Trade-mark(s) of Alliance Wealth Management are used under licence by Aviso Insurance Inc. Your insurance contract will provide details of the coverage available under the plan you choose. Restrictions may apply.