Mortgage Insurance...is it even necessary?

[Seks]

I have a mortgage insurance thru Canada Life.

http://www.canadalife.com/003/Home/index.htm

For the policy, what I have in it is Life Insurance, Disaability Insurance, and Critical Illness Insurance.

On my work paystub, I see that I get deducted for:

Basic AD&D
Supplemental AD&D
Voluntary AD&D
Dental
Extended Health Care
Basic Life
Supplemental Life
Long-Term Disability
Short-Term Disability

Is this Canada Life mortage insurance redundant???

[Kloubek]

There was a recent thread about this, but anyway:

Not sure if you have any dependants. If you do, then the more insurance the better in case anything happened, but it looks like you have things pretty well covered already. You have to gauge how much you want to pay monthly for the slim chance it is ever required.

But besides that, mortgage insurance is a generally a giant ripoff. You are better off investing in more life insurance, if anything - especially a plan that gives you a "living benefit", whereby you can extract everything you put into it by a certain age if you so desire, or leave it in there to dwindle away as you age. At least there you have options.

[Feruk]

I don't see why you'd bother with mortgage insurance. It's very expensive and decreases in payout value every year as your mortgage decreases. Top up your work life insurance instead.

[jwslam]

Depends on your work situation. For me:

My work life insurance is double my salary; not enough to pay off the mortgage.
Talked with next-of-kin and they said that's enough and they would deal with the rest.

[sabad66]

Find out what your work insurance is worth if you die, and assess whether that is enough. If so then yes the mortgage insurance is redundant.

My work gives us a base Life Insurance which is 2x yearly salary, but we have the option to increase it to 5x if we pay for it. Seems like you're signed up for the extra insurance based on your list of deductions so you might already have a decent payout.

[ExtraSlow]

Term life is better than mortgage life.

[codetrap]

.

[Weapon_R]

Term is better but mortgage life insurance is usually a no questions asked policy. For some the convenience is great but the coverage decreases every month