Many people have mortgages with banks and they also have mortgage insurance. What they do not know is that they are losing money with the non-licensed specialists that work at Canada’s leading banks.
How are banks taking more of your money than saving it? SIMPLE. They make it convenient to sell you mortgage insurance along with their high mortgage rates. Here are the facts:
• Cost: Premiums on mortgage insurance are typically higher than term life insurance. This is because mortgage insurance through the bank will decrease in coverage as your mortgage decreases, however, the premiums you pay will remain level. With personally owned term life insurance your premium and coverage will remain level saving you lots of money.
• Portability: Changing lenders, renewing your term, buying/selling your home, will require you to apply for new mortgage insurance. If you have change in your health when reapplying for your mortgage you may no longer qualify health wise. Term life insurance stays with you.
• Payout: With mortgage insurance, the amount of coverage decreases with your mortgage balance, while your premiums stay the same. Term life insurance stays the same throughout its term.
• Claim Time: A personally owned life insurance policy that is fully underwritten when the application is completed has a greater likely hood of being paid then one where the claim is underwritten at the time of death. The latter is what the banks will do. Watch the video to learn more.
• Beneficiaries: Unlike a personally owned life insurance policy, a mortgage insurance policy purchased through the bank will specify the bank as the beneficiary to cover the liability of your mortgage. You have complete control over the beneficiary designation and can decide what to do with the proceeds from your policy.
How can Liland save you time and money? Well, Liland is a mortgage and insurance broker. That means, we can shop the leading mortgage lenders and insurance companies to provide the most competitive rates to our clients. We are licensed agents that provide holistic financial planning to encompass family protection, equity wealth and retirement savings plans.
Check out this video from CBC Market Place and learn more about why you should reconsider owning a mortgage insurance policy with the bank: