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Homeowner's policy is a
insurance policy.
How are Mortgage Insurance and Mortgage Protection Insurance different?
- Mortgage Insurance reduces risk of lenders. It provides coverage for the unpaid amount in case of your death. You can purchase insurance from a bank or mortgage lender. Mortgage insurance is a safety net for your lender and not for your family. The amount received in case of your death will go directly to the bank account or mortgage lender and used to pay part or full payment of your mortgage loan. If there is some amount left after full payment of mortgage, it will not be given to your family.
- Mortgage Protection Insurance is a type of life insurance policy that provides a lump-sum amount to your family or nominated beneficiary in case of your death. The amount will not be limited to the unpaid mortgage loan. Canada Mortgage Protection Insurance will help you cover mortgage loans as well as your family’s financial needs. Mortgage Protection Insurance must be a preferred option if you have dependents or family to take care of.