Mortgage Insurance vs. Life Insurance

Mortgage Insurance or Life Insurance?

There’s one benefit to bank mortgage insurance: it’s easy. Read this short comparison and think twice before taking the easy route. A common scene: Mortgage life paperwork is pushed across the desk with mortgage documents making it appear required for approval.  The anxious client signs. But are they covered?

In a CBC MarketPlace episode “In Denial” they confirmed coverage is only underwritten AFTER claims. “Post-claim underwriting” is cost effective when signing up clients. Problem: all the client is qualified to do is pay. This type of creditor protection is illegal in Europe and in many states in USA. However, they often sell it in Canada.

Other downsides:

1. The bank is the policy owner & beneficiary. 2. Coverage isn’t transferable to any other home or bank. 3. Coverage expires at 70. 4. Family has no say in how to use the $. 5. Coverage is for decreasing balance. 6. Some banks raise prices as you age. (4-5 price jumps over 30 year mortgage) 7. Coverage can’t be changed to long term coverage or kept after mortgage paid. By comparison, if you talk to a licensed life insurance professional you’ll get expert advice! You’ll save money and be sure that your family’s protected. They’ll design a plan to get your mortgage paid AND for your family to maintain the lifestyle that comes with your home.  Life insurance companies have designed plans. They are specifically for mortgages which are medically underwritten and approved at the time of application. (Often there is no need for a nurse/doctor visit!) Please contact a licensed life insurance advisor today to get an option that will protect the ones you love. If you’d like more info please call/text me: 902-233-5267 or ctouchie@cluettinsurance.ca for more info on various types of life insurance policies. PS. Please share with your family, friends & co-workers. It could be a life saver.