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:
- $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.
- $95000 mortgage insurance (life, disability and critical illness) for a 41 years old male (non-smoker) and a 43 female (smoker): National Bank: $169.79 per month. InfoPrimes.com: $95.59 per month. Savings: $22260 over 25 years.
- $204000 mortgage insurance (life and disability) for a 27 years old female (non-smoker): Bank of Montreal: $35.09 per month. InfoPrimes.com: $23.8 per month. Savings: $4064 over 30 years.
- $400000 mortgage insurance (life and disability) for a 41 years old male (non-smoker): Royal Bank of Canada: $247.66 per month. InfoPrimes.com: $119.79 per month. Savings: $23017 over 15 years.
The early European settlers farmed, fished or raised oysters, and the area developed slowly and quietly until the Patullo Bridge was built in 1937. This connection allowed for expansion, and in the fifties, the area became a popular “bedroom community” in the fifties, attracting commuters who worked in Vancouver and Burnaby.
A second growth spurt occurred in the 1980s and 1990s when people from both different parts of Canada as well as the rest of the world, most notably Asia, migrated to the area.
Like most of the Pacific-Northwest, Surrey has the rainy, wet winters the area is noted for, but mild, sunny summers and cool autumns.
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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