We purchased a house & salary mortgage insurance here contained by Canada.?
If one of us were to die does the insurance pay sour the balance of the house mortgage and the other one of us stays in the house mortgage free or do we both enjoy to die?
Answers:
You should probally fake both of your deaths, lately to be on the safe side.
As the previous poster said, it all depends on what kind of insurance protection you hold. If its like the standard insurance offers that the bank offer (or at least my edge, TD Canada Trust), the payout is probably on the 2nd death to the lender to cover the mortgage.
It doesn't really offer much protection. I suggest reviewing your contract, and speaking to a licensed insurance advisor. I bought individual insurance, and not through my mound. The premium was lower, and the face amount does not subside over time. The insurance is portable should I move to another bank, and I can convert it to permanent insurance. Source(s): Me - Life licensed surrounded by Ontario.
Likely not. Most mortgage insurance, only pays the LENDER, if you default on the loan. They can still foreclose on the house, put on the market it out from underneath of you - the mortgage insurance then pays them the difference between what they got for the house, and the mortgage go together. THEN, the unsecured amount is transferred to the mortgage insurance company, who can sell it to collection agencies, and try to collect THAT way.
It really depends on the type of mortgage insurance you hold. If you pay the premium to the bank, the coverage is covering the edge as described above, NOT you. If you pay a seperate premium directly to the insurance company, then THAT'S predictable to be protecting YOU. Source(s): agent, 21+ years
Related Questions:
Answers:
You should probally fake both of your deaths, lately to be on the safe side.
As the previous poster said, it all depends on what kind of insurance protection you hold. If its like the standard insurance offers that the bank offer (or at least my edge, TD Canada Trust), the payout is probably on the 2nd death to the lender to cover the mortgage.
It doesn't really offer much protection. I suggest reviewing your contract, and speaking to a licensed insurance advisor. I bought individual insurance, and not through my mound. The premium was lower, and the face amount does not subside over time. The insurance is portable should I move to another bank, and I can convert it to permanent insurance. Source(s): Me - Life licensed surrounded by Ontario.
Likely not. Most mortgage insurance, only pays the LENDER, if you default on the loan. They can still foreclose on the house, put on the market it out from underneath of you - the mortgage insurance then pays them the difference between what they got for the house, and the mortgage go together. THEN, the unsecured amount is transferred to the mortgage insurance company, who can sell it to collection agencies, and try to collect THAT way.
It really depends on the type of mortgage insurance you hold. If you pay the premium to the bank, the coverage is covering the edge as described above, NOT you. If you pay a seperate premium directly to the insurance company, then THAT'S predictable to be protecting YOU. Source(s): agent, 21+ years
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