If You Are a Home Owner with a Mortgage, You Need to Read This!
It’s no secret that smoking is bad for your health, but purchasing mortgage insurance from a bank may be just as harmful. In the pocket book, that is.
In fact, bankers will be extremely unhappy if you were to watch this investigative report by CBC Marketplace which explains why your claims may be denied through the banks’ mortgage insurance plans. If you have mortgage insurance or if you are considering getting mortgage insurance, you need to watch this video.
http://www.youtube.com/watch?v=qe61HVGIwUo
Luckily, there is another alternative; personally owned Life Insurance. Not only does it cost less, but it provides various benefits that mortgage insurance does not.
With mortgage insurance your coverage decreases as the mortgage amount decreases but the premiums do not go down. In fact, the cost for every $1,000 of coverage increases because bank mortgage insurance only pays the balance of the mortgage outstanding at the time of your death. Your personal life insurance payout will remain fixed throughout the specified term.
Bank mortgage insurance really only has the bank, itself, in mind. It typically only pays the balance of the mortgage outstanding to itself and no one else gets paid. With life insurance, you delegate who will receive what. There can be money left to your family and friends as your loved ones may decide to continue on with paying the mortgage.
If you decide to change mortgage providers, you will need to requalify for bank mortgage insurance with the new lender. As time has now passed, you will be older and rates will most likely be higher than current record lows. As well, if your health has begun to fail, you may not even qualify for mortgage insurance anymore. You are the owner of your personal life insurance policy. The policy remains valid no matter how many times you may move or refinance your home.
If you are a healthy individual you would most likely receive a reduced rate on your life insurance premium, but you won’t receive similar rate reductions with mortgage insurance.
What if you have you already purchased mortgage insurance from your bank? It’s not too late to change to a life insurance policy. Before cancelling your mortgage insurance with your bank, talk to a qualified life insurance broker such as myself, Adam Duncan. I can explain how you can save money and still have the coverage you need for your home’s mortgage. Call me toll-free at 855-735-3616 or email me at aduncan@adibenefits.ca. I look forward to hearing from you soon!