Do I need mortgage life insurance?
Quick Answer
Short answer: It's optional but expensive; term life insurance is usually cheaper and more flexible.
Detailed Explanation
Banks push mortgage life insurance hard, but it's rarely the best deal. The coverage decreases as you pay down your mortgage, yet premiums stay flat. If you die, it pays the bank directly—your family gets nothing extra.
Term life insurance costs less, covers more, and pays your beneficiaries who can choose how to use the money.
- Medical underwriting happens upfront with term life
- Mortgage insurance underwrites only when you claim
- Shop independent brokers for term quotes
Disclaimer: This page is for general information only and does not constitute legal, financial, or real estate advice. Always verify details with a licensed Alberta REALTOR®, mortgage professional, or lawyer before making decisions. Buy in Edmonton assumes no liability for actions taken based on this content.
Tim Grover, RE/MAX Excellence • 780-288-5144 • 5607 199 Street NW, Edmonton, AB
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