Tell Me Why I Need Mortgage Life Insurance
First of all, know that mortgage life insurance is designed to pay off your mortgage if you die. Let’s not put our heads in the sand and avoid discussing this important issue, since by doing so leaves your family unprotected.
The next most critical thing to realize is that many policies are decreasing term, which means the value of the policy goes down over the years.
This may have worked years ago, but today, many people move a lot, and they also may refinance their loans, thereby negating the original mortgage. . There are many differences between kinds of insurance, and fixed vs. decreasing is only one of them.
When you talk about lenders’ mortgage life insurance, you are normally discussing term life insurance. This kind of policy will not protect you fully after the first few years. Whether you move, or even just refinance, your insurance will not carry over to the next mortgage. When you have a policy with your bank, any change in that lender relationship automatically means a cancellation in the policy. This is not practical for many people since they often will refinance their homes, for various reasons.
One sure way to avoid this problem is to get your mortgage life insurance from an insurance professional, since the policy protects you, no matter who your lender is.
Many people are not aware how important this advantage is. Additionally, never underrate the value of dealing with a professional insurance counselor, rather than a banker who is selling an insurance product.
Owning and controlling the mortgage insurance policy for your home will give your family a lot more protection. Policies from banks or lenders are group policies that the lender controls. The lender can, and does set limiting clauses that may endanger the policy, such as reviews every few years.
These evaluations can mean that your policy can be cancelled if you fail the review; if you now have health issues, this is exactly when you want the policy!
mortgage insurance quotes Canada, canadian life insurance quote
More Examples:
- $260000 mortgage insurance (life and disability) for a 29 years old male (non-smoker) and a 32 female (non-smoker): Royal Bank of Canada: $96.29 per month. InfoPrimes.com: $45.25 per month. Savings: $15312 over 25 years.
- $109500 mortgage insurance (life and disability) for a 25 years old male (non-smoker): Royal Bank of Canada: $18.42 per month. InfoPrimes.com: $15.69 per month. Savings: $819 over 25 years.
- $210000 mortgage insurance (life) for a 22 years old male (non-smoker): Royal Bank of Canada: $20.6 per month. InfoPrimes.com: $16.22 per month. Savings: $1840 over 35 years.
- $147000 mortgage insurance (life) for a 44 years old male (non-smoker) and a 41 female (non-smoker): National Bank: $63.45 per month. InfoPrimes.com: $36.41 per month. Savings: $6490 over 20 years.
- $100000 mortgage insurance (life) for a 46 years old male (non-smoker): Scotia Bank: $41.42 per month. InfoPrimes.com: $34.96 per month. Savings: $1550 over 20 years.