The Importance of Mortgage Life Insurance
Understand what mortgage life insurance is-insurance that pays off your home loan in the case of your death. We all try to ignore this issue, but it is a question of something that is too important to ignore- whether your family will have a place to live.
Most mortgage life insurance policies are the kind that goes down as the mortgage decreases, under the assumption that you need less coverage as years go by.
This may have worked years ago, but now, many people move a lot, and they also may refinance their loans, thereby negating the original mortgage. . Here is the distinction between fixed term and decreasing term mortgage life insurance.
Mortgage insurance given by banks and lenders is usually decreasing term insurance. This means that your policy will not be available to you through thick and thin. If you sell your home, or even if you stay in the same house but refinance it, you will lose your insurance. Since the bank was the insurance issuer, if you don’t stay with that same bank, your policy will be cancelled. Today, with so many households buying new houses, or just refinancing their existing homes, this kind of an option just doesn’t function; you want your insurance to be as flexible as you have to be now.
If you get your mortgage life insurance from an insurance professional, however, instead of your bank, your policy stays in place, through thick and thin.
This is one, but not the only benefit of mortgage life insurance from an insurance company. There is also the advantage of dealing with an insurance consultant instead of a bank lending officer, who really knows nothing about insurance except this one type he has been instructed to sell to you.
You are the owner of the policy, and you have control over it. When you purchase your policy from a bank, they have the control, instead of you. The lender can, and does set restrictive requirements that may endanger the policy, such as reviews every few years.
If you are reviewed at a point when your health may not be at its best, the lender can simply cancel the insurance, even though you have kept your premiums up and need you policy right now.
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More Examples:
- $310000 mortgage insurance (life) for a 51 years old female (non-smoker): Scotia Bank: $160.5 per month. InfoPrimes.com: $49.76 per month. Savings: $26578 over 20 years.
- $176000 mortgage insurance (life and disability) for a 49 years old female (smoker) and a 45 male (smoker): National Bank: $237.12 per month. InfoPrimes.com: $138.26 per month. Savings: $29658 over 25 years.
- $210000 mortgage insurance (life) for a 22 years old male (non-smoker): Scotia Bank: $19.57 per month. InfoPrimes.com: $16.22 per month. Savings: $1407 over 35 years.
- $153000 mortgage insurance (life and disability) for a 28 years old female (non-smoker) and a 31 male (non-smoker): Royal Bank of Canada: $54.43 per month. InfoPrimes.com: $32.54 per month. Savings: $9194 over 35 years.
- $100000 mortgage insurance (life) for a 46 years old male (non-smoker): Bank of Montreal: $46.87 per month. InfoPrimes.com: $34.96 per month. Savings: $2858 over 20 years.
The City of Richmond, British Columbia has a unique and beautiful location. At the mouth of the lovely Fraser River, it is actually made up of a series of islands, Sea Island, Lulu Island and fifteen smaller ones. And the view from these islands is dominated by a coastal mountain range. In addition, as if a location like this isn’t enough, Richmond is close to downtown Vancouver and the U.S. border.
The population of Richmond is 188,100 and the city is a blend of agricultural areas, residences and commercial property, and of course, beautiful waterways where the Fraser River meets the Pacific Ocean.
All this sea air must be good for the residents, since Statistics Canada reported that the residents of Richmond have the longest life expectancy in Canada, with a life average of 83.4 years, as compared to the national average of 79.5. It is no surprise that they have the lowest smoking and obesity rates in the country.
Like most of the west coast of Canada, Richmond has a temperate climate with little or no snow most winters, and an average rainfall that is 30% lower than Vancouver’s.
Situated in the far northwest of the country of Canada is the beautiful province of British Columbia. Like most of Canada’s western provinces, it grew as an outgrowth of the numerous trading posts of the fur trading industry formed by the Hudson Bay Company. This fur trade was the basis for towns that grew up around the posts, and afterwards, when gold was discovered in the Fraser Canyon in the 1850’s, gold fever meant even more growth to the province and eventually led to the province becoming part of the new nation of Canada.
British Columbia has new appeal for the visitor these days; instead of fur and gold, majestic mountains bring in nature lovers from all over the world to the many parks and reserves. East of the Peace River, the countryside changes to the no less spectacular prairie land and farmland of the Peace River District.
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