If I took the mortgage insurance through my bank am I paying too much?
Chances are, Yes! Most likely, you are paying smoker rates. But that's not the biggest problem...
1.) You don’t control the policy. When you purchase mortgage life insurance from your lender, you do not own the mortgage life insurance policy and you don’t get to name the beneficiary – in fact, the beneficiary is the financial institution.
2.) The death benefit decreases. The death benefit gets smaller and smaller with each mortgage payment you make. Your insurance premium, however, stays the same. Whatever your premium is, at the start of your mortgage is what you pay for the duration of the mortgage - even when the day arrives and all you owe is $20,000.
3.) Coverage may end if you switch lenders. If you renew your mortgage with a different bank, you’ll need to go through the insurance application process again.The good news is you can cancel this insurance at any time, but don't cancel until we get you a new policy.
Why not talk to us and we can get you some proper coverage that will put you in control of the policy and allow you to decide on what options are best for your family!
A $500,000 policy that is good for 20 years for a healthy 32-year-old female for $24/month. That's pretty cost effective peace of mind. When you take the time to have a properly completed process you will reduce the possibility of being declined a claim like this couple. Read their story here.
Related Article: Is It a Good Idea To Tap Into Your Home Equity Before You Retire?
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Your Trusted Advisors & Retirement Specialists,
Willis & Nancy
