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:
- $200000 mortgage insurance (life) for a 33 years old male (non-smoker) and a 34 female (non-smoker): CIBC: $39.24 per month. InfoPrimes.com: $29.13 per month. Savings: $1820 over 15 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.
- $265000 mortgage insurance (life, disability and critical illness) for a 39 years old male (non-smoker): National Bank: $162.99 per month. InfoPrimes.com: $127.57 per month. Savings: $10626 over 25 years.
- $153000 mortgage insurance (life and disability) for a 28 years old female (non-smoker) and a 31 male (non-smoker): National Bank: $64.79 per month. InfoPrimes.com: $32.54 per month. Savings: $13545 over 35 years.
- $219000 mortgage insurance (life and disability) for a 29 years old male (non-smoker) and a 25 female (non-smoker): Royal Bank of Canada: $38.67 per month. InfoPrimes.com: $25.91 per month. Savings: $3828 over 25 years.
Abbotsford is located in the Fraser Valley in British Columbia. It is the 5th largest municipality in B.C., with 123,864 people, as of the 2006 census, but it is the largest city by area in the Province.
The southern boundary of Abbotsford sits on the U.S.-Canadian border, across from the State of Washington. The city of Abbotsford is surrounded by mountains, with a view of Mount Baker to the south and the Coast Mountains to the north.
The Fraser gold rush of 1858 was the beginning of Abbotsford, when the Royal Engineers surveyed the area and the first transportation link to the Fraser Valley, the Old Yale Road was built.
The growth of the tobacco and dairy industries contributed to the further growth of the region and in 1889, an application was made for a crown grant that would form the basis of Abbotsford. The town was named after Harry Abbot, the superintendent of the Canadian Pacific Railway and a family friend of the crown grant applicant.
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 today; 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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