Use your Life Insurance to Pay Off your Mortgage Early

Consider this…

While many Canadians insure their life against death and illness…did you know it might be possible to use your individual life insurance policy to help pay your mortgage off early?

Let’s look at an example of a typical mortgage:

The chart below illustrates the way the mortgage balance would reduce over a 25 year payment schedule.

By purchasing a life insurance policy on each person, this couple would enjoy the benefit of having the security of an individually owned policy that would pay them $200,000 “tax free” if either of them were to die at any time during the coverage period.

In addition, because they chose to purchase a life insurance policy with a “guaranteed cash value” they have access to the entire premium they paid, and more, if they cancel the policy any time after 20 years.

In this case, they cancel the policy in 20 years and use the money to pay off their mortgage.

Let’s look at the example again using the Life Insurance policy to pay off the mortgage early:

This is one example of how you can protect yourself and your family and ultimately benefit financially at the same time.

To arrange for an individual Life Insurance policy that can help you pay your mortgage off early, contact Barrons today.

This example is for illustration purposes only, while every attempt has been made to ensure the accuracy of this information Barrons or its affiliated companies cannot be held liable for errors or omissions. Actual numbers at time of illustration may vary.