Over insurance is paying monthly insurance premiums for a payout that is more than you need.

• Getting more than you need sounds great, but you may NEVER need it
• You are paying higher premiums every month, which means throwing away your money

• Term insurance typically insures you for a fixed amount, but your Mortgage balance decreases over time
• As soon as you make your first mortgage payment after signing up for term insurance, you’re over insured for the amount allocated to your mortgage

• Most disability insurance plans will cover you for a fixed monthly amount
• If you have a variable mortgage payment, every time interest rates go down, your mortgage payment will go down, and you’ll be over insured
• If you have a fixed mortgage payment, and you re-new your term with lower payments, you’ll be over insured

Although you’ll have the same life insurance premium over the life of your mortgage, your life insurance premium is calculated to insure you for the exact amount you’ll need to pay off your mortgage at any given time.

Although you’ll have the same disability insurance premium over the life of your mortgage, your disability insurance premium is calculated to cover you for fluctuations in your mortgage payment. This means as your mortgage payment amount increases with rising interest rates, you’ll be covered while paying a MUCH lower disability insurance premium