Is Mortgage Term Life Insurance Right for You?
Mortgage term life insurance might be a good idea for you to purchase if you wish to secure only the mortgage balance on your house. Mortgage term life insurance is a decreasing term life policy, and there is no medical exam required if your mortgage balance is $350,000 or less. You will have to meet the age requirements to qualify for mortgage term life insurance.
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UPDATED: Oct 28, 2020
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Home ownership. It’s about stability, security, family, friends… All the things that make life truly special.
That’s the way RBC Insurance describes its RBC Mortgage Protection product (view the brochure). The coverage is designed to pay off the balance of your mortgage if you or your covered spouse/co-borrower were to die during the policy term. The policy is a decreasing term life insurance policy issued by Liberty Life Insurance Company, an A rated company by AM Best (Excellent, third highest of 16 ratings).
What is Mortgage Protection Life Insurance?
Decreasing term life insurance pays a benefit equal to the outstanding mortgage balance at the time of death. Since the death benefit decreases over time along with the mortgage balance, the policy premiums may be lower than regular term life insurance for the same policy term. However, this is not always the case, so it is a good idea to check quotes for both and compare.
RBC Mortgage Protection is available for the following amounts and terms:
- Coverage amount: $50,000 – $500,000
- Coverage term: 10 years – 30 years
There is no medical exam required if your mortgage balance is $350,000 or less, you can answer ‘No’ to the two health questions, and you meet the age requirements.
RBC Mortgage Protection is available for the following mortgage types:
- First mortgage loans
- Variable rate loans
- ARM loans
Why Buy Mortgage Term Life Insurance?
RBC Mortgage Protection is a good choice if you wish to secure only the mortgage balance on your house and you want a decreasing term life insurance policy. Perhaps you have no other debt, your children are grown, or your retirement is covered. If so, mortgage term life may be a good fit for you.