Would you purchase mortgage insurance through your mortgage lender if you were aware of the much greater advantages of purchasing individually owned life insurance instead? Here are only few of the differences:
Mortgage Lender Insurance:
– The biggest issue with insurance purchased from the bank is that all underwriting is done after a death claim is submitted. What this means is that you could technically be declared uninsurable, and be declined, even though you have been paying your insurance premiums each and every month.
– Your mortgage lender is the only beneficiary. You cannot name any family members.
– Your insurance coverage decreases as the balance of your mortgage decreases, but premiums stay the same.
– If you switch mortgage lenders, you cannot transfer your insurance to the new lender.
– If your claim is approved, the payout can only be used to pay off your mortgage .
Individually Owned Life Insurance:
– All underwriting will be done before the policy is issued. Therefore you know your claim will be paid out when needed according to the terms of your contract.
– You select your beneficiary (ies).
– Your insurance coverage and premiums remain the same.
– You can make changes to your policy at any time.
– Your insurance payout will be left to your loved ones, so they can spend the money however they may choose.
Some of the Insurance Carriers we represent:
Canada Life | RBC Insurance | BMO Insurance | Great West Life | Sun Life Financial | Transamerica Life