How To Protect One of Your Most Valuable Assets.

In this article I explain the real facts that can save you money and protect one of your most valuable assets…your HOME.

When asked at the bank to purchase mortgage insurance do you really know what you are signing up for.  I’ll explain the differences between purchasing mortgage insurance through your bank/financial institution or through an Insurance Advisor like myself

Here are the facts.

1. Does your death benefit remain level?

  • BANK–         NO Your bank mortgage insurance decreases, so does your coverage but your premiums stay the same

2.  Do you own the policy?

  • BANK –             NO the bank does
  • ADVISOR –    YES

3.  Is the mortgage insurance portable?

  • BANK – NO- if you change lenders you have to reapply, if your health has changed you run the risk of NO coverage.
  • ADVISOR–       YES

4.  Do I choose the beneficiary?

  • BANK–             NO-the bank is the beneficiary and pays off your mortgage.
  • ADVISOR–      YES- you name the beneficiary, they receive the full benefit amount and they decide what to do with the proceeds.

5.  Is the underwriting done at the time of the application?

  • BANK–             NO- The bank mortgage does it at the time of death.
  • ADVISOR-     YES- All medical history and testing is done prior to issue of the policy.

5.  Do non-smokers and females pay less?

  • BANK–           NO– The bank mortgage insurance is a one size fits all concept.
  • ADVISOR YES– Rates are based on individuals medical condition and sex, females and non smokers receive lower rates.

6.  Can I continue the coverage if my mortgage is paid off?

  • BANK – NO– Once your mortgage is paid off at the bank, no coverage.
  • ADVISOR YES– You can keep it, convert it or cancel it…you have the choice.

If you have additional questions or would like to speak to me in more detail regarding your situation email me at [email protected]

Check this out…a must see!

CBC Marketplace does an investigation on two families who bought the coverage and thought they were protected, only to have their claims denied.