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A) I am in Ontario, Canada
B) I borrowed a large sum of money from my parents to use as a downpayment
C) the bank, which I currently have a mortgage with has offered mortgage insurance.
D) my friend has recommended I get ‘mortgage life’ insurance
E) someone recommended insurance to cover the loan to my parents
F) any help and advice is greatly appreciated

5 Thoughts on I am 29. just purchased a condo. What type of mortgage insurance should I get?
  1. Reply
    Equality
    September 15, 2012 at 3:15 pm

    The Mortgage Life Insurance would be your best move with parents as beneficiary.. This way if you do die then mom and dad collect on the insurance policy, pay of your remaining mortgage and then can sell the condo

  2. Reply
    Talk Turkey
    September 15, 2012 at 3:31 pm

    Get life insurance.
    Don’t get mortgage insurance. The value decreases over time and it’s just as costly as regular life insurance.
    Mortgage companies are sharks – pure sharks.
    Don’t trust them with open arms.
    They do not have your financial well-being as their main priority.
    Their priority is profits from selling you things and earning commissions
    See what kind of life insurance your job has to offer and make your parents the benefiary

  3. Reply
    ShalloWhale
    September 15, 2012 at 4:17 pm

    Unless your mortgage bank says you have to, I don’t see why you would buy any mortgage insurance. That’s like taking out insurance on yourself in case you fail. That should be your banks worry.

  4. Reply
    Susan H
    September 15, 2012 at 4:29 pm

    The best mortgage life insurance you can get is a good term life insurance (after having a good talk with your parents as to what they think the best amount is) with your parents as beneficiary from a high quality life insurance company. That way your loan is paid to your parents and to pay off the mortgage. Life insurance offered by the bank is a great profit maker for the financial institution, it is not advised to use it.

  5. Reply
    Venita Peyton
    September 15, 2012 at 5:11 pm

    If you are in good health, a regular term life insurance policy should be relatively inexpensive. As suggested by the others, you should have your parents named as the beneficiaries. This way they can have the option of paying off your mortgage (in the event of your untimely death) and still sell your house for a double savings.

    The advantage of purchasing through a large, reputable, company, is that you may choose to convert the term policy to a whole life policy a few years down the road – without having to show insurability. So if your health changes, the coverage remains at the best rate. The premiums will rise because the whole life policy has a savings feature.

    If you’re unmarried, your parents may feel even more relieved if you make them the owner of the policy. This way, if you marry later, your spouse won’t feel the need to convince you to make him or her the beneficiary rather than your parents.

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