Should you insure your Rental property against death or disability?  

Is it a tax deduction?  What should you be thinking about?

When you get lending for a mortgage for a rental property.  

They will ask if you would like to add protection against death or disability.  

Of course, it would be nice to have that debt paid off if you passed away but here are 3 key points to consider.  

I just came across a premium for $847 year to insure a condo with a low mortgage on the property.  

First of all, this is not a tax deduction. This would be an after-tax expense that you will need to incur.  So before tax, this could be costing you over $1,200 year

Secondly, if the property is already self-sufficient why would we need to insure the property.  The property can pay for itself whether one of the owners is alive or not.

Lastly, what is the opportunity cost, what if you just allocated that $847 year towards paying down the debt or allocating it to an RRSP and then using the tax refund as an additional payment on the principal mortgage.  

Make sure you are adequately insured but reconsider insuring a revenue property and restructure this cash flow into a more effective way.