Category Archives: Health

Life Insurance versus Mortgage Insurance

Life Insurance versus Mortgage Insurance, is what some of my clients ask me when they are purchasing a house. A financial advisor I know in Ottawa shared with me a practical chart to explain the difference between life insurance and mortgage insurance:

PERSONAL LIFE INSURANCE MORTGAGE INSURANCE
  • Insures you
  • You decide who to name as your beneficiary
  • Renewable, convertible term insurance
  • Underwriting is done at the time of application
  • You determine the amount of the coverage; your coverage remains same
  • You own the policy
  • It is yours, you keep it
  • Your beneficiary decides how to use the money
    • Insures your mortgage
    • Lender is the beneficiary
    • Non-renewable, non-convertible term insurance
    • Underwriting is done at the time of the death
    • Covers the exact amount of mortgage balance; as you pay down your mortgage your coverage decreases but your premiums remain same; cost per $1000 of coverage increases
    • Lender owns the policy
    • When you change your lender you cannot transfer your insurance
    • Lender automatically pays remaining mortgage balance
    • Shared by Nilay Erisoglu, Financial Security Advisor, Freedom 55 Financial Nilay.erisoglu@f55f.com

Let me go through some more details of Life Insurance versus Mortgage Insurance

Life Insurance

Mainly life insurance is used for insuring yourself, you decide who you name as the beneficiary (your spouse, family member, etc) and they decide on how to use the money, the amount of money paid out to the beneficiary never changes.

Life insurance is also renewable, and convertible term insurance. In Life insurance you have protection for the duration of the policy. The duration usually is around 10 to 30 years or sometimes to an age like 70 or 80. It all depends on the term you purchase and the underwriting is done at the time of the application.

In life Insurance you determine the amount of the coverage; your coverage remains same during the policy. When you plan to sell or change lender for you mortgage, your life insurance remains the same and does not get affected, it stays with you.

Life insurance is usually less expensive than mortgage insurance. Although a note of caution that if you intend to get for another term, you could potentially be paying a higher premium depending on the age and your health. Typical the enrollment process for term life insurance is more complex than applying for mortgage insurance, since life insurance policies require a medical exam in order to secure coverage.

Mortgage Insurance

Mortgage Insurance insures your mortgage, and the lender is the beneficiary (not someone whom you have named). It is non-renewable, and it is non-convertible term insurance. Typically the underwriting is done at the time of the death. Mortgage insurance covers the exact amount of mortgage balance; as you pay down your mortgage, your coverage decreases but your premiums remain same…

In Mortgage Insurance the lender owns the policy and if you change your lender you cannot transfer your insurance to the new property. The lender automatically pays remaining mortgage balance in the case of death.

Some advantages of mortgage insurance are that they are very convenient, they often do not require any medical exam. You typically will purchase the insurance through your bank or the financial institute that lend the money for your mortgage. Mortgage insurance is usually added to the lender’s monthly mortgage payments.

The downside of mortgage insurance is they are usually more expensive than life insurance although more easy to attain from a bank. CBC Marketplace also did a series of mortgage insurance.

I hope this blog post helps explain the difference between Life insurance versus Mortgage insurance and last but not least I hope your winter is going well with a lot of fresh air experiences and you are getting ready for a wonderful spring coming up with high energy.,..Whether your plans to relocate, to downsize, to aim for a change or investment, give me a shout and lets get the ball rolling for your next chapter…

Cheers!

Written by Nilay Ertemur

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2014 has been a great year. There are things to be thankful for always; health, family, and the bread and butter on our tables. May our lives be filled with meaningful people, events and causes in 2015 and beyond. Today, I just wanted to share a couple of things that make any holidays, traditional or cultural events more joyful and easy.

1. Its not just about the rest, it is about fun and moving also:
Most people associate holidays with eating and certain types of foods, but having some activities and fun (snow tubing, skiing, hiking, etc.) might bring us more motivation and energy…

2. Take meaningful presents
When visiting others during holidays, give meaningful presents, things that you know people will need and use rather than the fancy new toy of the year. Don’t go empty handed anywhere that you have been invited…

3. Stay physically active
During holidays we tend to gain weight, having a schedule to do exercise or simply doing the chores at home will help shed some of the pounds away and we may even manage to lose some weight!

4. Stay stress free
Holidays bring their own stress, with in-laws visiting, cousins/neighbors involvement, their expectations, ways of doing things, etc. The key to stress free holidays is planning ahead and one way to do this is to keep things simple (prune the to-do list, call don’t send cards, cut the gift list, etc) Get in touch with people that you love the most, and do the things that make you feel peaceful!

5. Organize your life
Studies show that a minor sight of cluttering puts us on the edge, organization offers a sense of control and peace of mind, and there’s a number of ways we can improve in this regard. Having a little bit of tidy up time everyday, making a small to do list for those dreadful drawers can help us feel better, and lets remember: one task at a time…

6. Sleep early
Studies have shown that not having enough sleep can also cause weight gain. During the holidays going to bed early as much as possible and keeping a healthy sleeping and eating pattern can help with having fun and peaceful times. No one wants a sleep deprived grouchy Christmas person hosting or being a guest.

After all, like anything else, holidays is about to have and find the balance that keeps us happy!
Enjoy and be present in the moment always!
Cheers!
Nilay Ertemur
Nilay Ertemur

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Here is our personal experience of testing Radon gas at home:

What is Radon Gas ?

Radon gas is a radioactive gas that is odorless, colorless and tasteless. It is formed naturally during the breakdown of uranium in soil or rocks.

How Does it Affect me ?

Radon gas is the second leading cause of lung cancer in Canada. (http://www.cbc.ca/news/canada/calgary/radon-gas-home-tests-urged-by-calgary-cancer-experts-1.2505835) Inhaled radon can be trapped in your lungs and can cause lung cancer. Also do note smoking habits, plus a long term exposure of radon gas are what may also lead to lung cancer. A radon gas level less than or equal 200 Becquerels per cubic metres does not require any actions, anything above that figure would require actions to be taken.

How Did it Get into my House ?

Radon gas is produced naturally, when in confined areas (like basement) it may lead to higher concentrations, since we tend not to have much airflow/circulation in basements. Radon gas is also produced out in nature all the time except that the outside air dilutes it to low concentrations of it.
Radon gas tends to seep into your house by foundation cracks, sump pumps, soil dirt floors and basement drains.

How to DIY the Test ?

A DIY test kit can be purchased from Internet, Home Depot or from Ottawa Public Health One can call: 613-580-6744. The cost of the kit varies from 40 – 100 dollars.

The process is rather simple, the instructions are usually provided with the device but basically you just need to hang the device in the middle of the room above certain feet for the amount of days the instructions have directed. It is usually the basement and winter months are recommended since the true results are obtained when there is not many open windows and doors around.
Once the days have been completed, the device usually comes with a package to ship to the testing company and a report is sent back to you. Again a level of 200 or less does not require any actions.

What if I Have More Than 200 ?

I would strongly advice that you get a professional company to test and to provide you with suggestions then. Usually with some modifications in the house such as better circulation, ventilation, and some device instalments, one can handle the problem without having to move.
A list of companies can be found at http://www.nrpp.info/

Author: Nilay Ertemur

Sources:
http://www.cbc.ca/news/canada/calgary/radon-gas-home-tests-urged-by-calgary-cancer-experts-1.2505835
http://ottawa.ca/en/residents/public-health/healthy-living/radon-your-home

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