Mortgage Insurance

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. Marketplace broadcast on mortgage insurance.

If you have mortgage insurance with the bank and you would like a second opinion please call me for a no obligation appointment.

Mortgage Insurance - Through Your Lender

Life Insurance - Personal Policy

Beneficiary - Lender/Bank

Beneficiary - You choose

Benefit - pays what you owe on your mortgage

Benefit -  you decide how to spend the payment

Coverage - decreases over time but your premium stays the same

Coverage - doesn't decrease unless you decrease it

Switch lenders/banks your coverage may be lost

Switch lenders/banks the policy is yours no matter who you have your mortgage with

Mortgage is assumed or in default  you will lose your coverage

Mortgage is assumed or in default coverage is maintained as long as you pay your premiums

Your needs change and you need more coverage? No flexibility

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.