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:
- $180000 mortgage insurance (life) for a 41 years old male (non-smoker) and a 36) and a female (non-smoker) :Bank of Montreal: $58.86 per month. InfoPrimes.com: $48.33 per month. Savings: $1895 over 15 years.
- $125000 mortgage insurance (life) for a 47 years old male (non-smoker): Scotia Bank: $51.78 per month. InfoPrimes.com: $24.98 per month. Savings: $6432 over 20 years.
- $150000 mortgage insurance (life) for a 49 years old male (non-smoker) and a 48 female (non-smoker): CIBC: $98.1 per month. InfoPrimes.com: $54 per month. Savings: $7938 over 15 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.
Prince Albert, Saskatchewan, is located in the center of the province on the banks of the North Saskatchewan River. It is the third-largest city in Saskatchewan, and is called the “gateway to the north”, because it is the last large city before the resource rich north of Saskatchewan.
The area was home to the Cree Native Tribe, who called it kistahpinanihk, which means meeting place. The first European in the area was Henry Kelsey in 1692, and a trading post was established in 1776 by Peter Pond. The basis of the current community was a mission established in 1866 by Reverend James Nisbet, who wanted to preach to the Cree. At first, it was just called “the mission”, but Nisbet named the community after Prince Albert, husband of Queen Victoria, who had died five years before.
Speculation that the Transcontinental Railway would head north towards the region led to a growth spurt, but when a more southerly route was chosen, this growth collapsed. But by 1914, Prince Albert was the terminus of four railway branches.
Saskatchewan, Canada, is considered a prairie province situated just about in the middle of the nation, with a southern frontier that runs to the border of the United States, with something over millions residents, 223,000 in its largest city, Saskatoon and 194,971 in its capital, Regina. Like many provinces and cities in Canada, the name of this area comes from a First Nation word, meaning “swift flowing river” in Cree, referring to the Saskatchewan River. In addition to Alberta, Saskatchewan is one of two landlocked provinces in Canada, with the Northwest territories to the north and the states of Montana and North Dakota to the south. The indigenous peoples of the Cree, Sioux, Algonquin and others occupied the area before the arrival of the Europeans, with the first European travels by Henry Kelsey in 1690 and the first European settlement at Cumberland House, established by the Hudson Bay Company in 1774. The growth of the province was due in large part to the construction of the Canadian Pacific Railway in the early 1880’s, as well as a government program that gave ¼ square mile of land, and an additional ¼ upon building of a settlement, to any willing settler; this growth led to the establishment of Saskatchewan Province in 1905.
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