Mortgage Insurance
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Those of us that own a home don’t always know that we have options when it comes to insurance. Many will elect to take the insurance from the bank that is holding our mortgage, and most us believe we are covered. Below I have developed a chart that will show you the differences of having insurance through your lender and owning your own personal policy.
CBC Marketplace also aired their documentary “In Denial”, that opened many consumers eyes. Follow this link to see what marketplace had to say.
If you have mortgage insurance with the bank and you would like a second opinion please call me for a no obligation appointment.
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Here are some differences between Mortgage Insurance at the bank/lender and a Life Insurance policy:
Mortgage Insurance - Through Your Lender
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Life Insurance - Personal Policy
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Beneficiary - Lender/Bank
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Beneficiary - You choose
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Benefit - pays what you owe on your mortgage
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Benefit - you decide how to spend the payment
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Coverage - decreases over time but your premium stays the same
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Coverage - doesn't decrease unless you decrease it
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Switch lenders/banks your coverage may be lost
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Switch lenders/banks the policy is yours no matter who you have your mortgage with
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Mortgage is assumed or in default you will lose your coverage
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Mortgage is assumed or in default coverage is maintained as long as you pay your premiums
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Your needs change and you need more coverage? No flexibility
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Your needs change and you need more coverage? Depending on type of plan you have, you may have the flexibility to adjust to your needs.
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