3 Truths about Mortgage Life Insurance from the Bank

Retirement Transition, Calgary

It's not that great of a deal

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 arives 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 anytime, 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?

Want to retire in the next few years? Find out why a Retirement Income Plan is necessary.

 

Your Trusted Advisors & Retirement Specialists,

Willis & Nancy

Specializing in Retirement Income Planning


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I attended a session hosted by Willis and Nancy last night. Cost me nothing but an hour of my time. Was well worth it. Willis is one smart guy, so if you are even considering an info session, go hear his message .... I'd be surprised if you don't come away with something you didn't know about retirement planning.

Glenn Saunders
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