As a realtor, I take pride in helping my clients with the largest and most significant purchase of their lives. Even though I'm not directly responsible for your financing, I certainly want to make sure you are well covered so you can continue to enjoy your new home for man years to come. This is why I highly recommend you consider purchasing your own personal life insurance policy, rather than relying solely on MPP (mortage protection plan).
Here are the top 3 reasons why personal life insurance is a good idea:
1. YOU WILL SAVE MONEY: Without fail a life insurance policy is at least 10-40% less than MPP (see example below)
2. YOU GET COLD HARD CASH: When life insurance pays off, your family will get CASH in their bank account tax free. This is much better than the bank getting the cash to pay off your mortgage. Your mortgage is paid off NOW WHAT?! You still have to pay all of your other every day expenses. With life insurance, your $400,000 in cash will provide your dependents with much greater flexibility and breathing room to allow them to grieve properly. After a death, this will go a long way in helping your family live financially free for a much longer period of time.
3. YOU GET SMARTER COVERAGE: Everyone needs smarter financial planning! Unlike MPP (which only covers the mortgage), life insurance provides you with fully underwritten & guaranteed coverage for both husband and wife. Life insurance can be integrated to cover all of your debts, as well as take care of your spouse and your children, all under one policy. You can also invest in whole life insurance, which is an asset that generates a cash value (so your cost of insurance is actually nothing). There is something to be said about comprehensive planning!
Here is an example of a recent MPP client scenario:
Shane, 42, Kristy, 36
Mortgage = $395,000
MPP total = $92.83
Life Insurance total = $60.87
a difference of $383.82 per year = 34% savings
THE ZINGER:
Their coverage is doubled! So if they both pass away, their children will get $800,000 in cash. That is no question, 100x better than their kids owning a mortgage free home.
For more information regarding Life Insurance vs. MPP contact Desirée Dupuis at Three Sixty Financial Group. She can be reached at 778-245-2262 or via email at desiree@threesixtyfg.ca.
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