Mortgage insurance can be purchased through a Life Insurance Broker, often at a better price, and with some distinct advantages over the major lending institutions. Home-buyers mistakenly think that loan approval and mortgage insurance are a ‘package deal’ or that the loan is dependent on having such coverage. The truth is you can purchase your own separate insurance policy to ensure sufficient protection on your new home and in addition receive solid advice from a professional Life Insurance Broker.
Life Insurance:
- Individual policies give you the freedom to appoint your own beneficiary rather than your financial institution.
- The insurance benefit is paid to the beneficiary, rather than to your lending institution. Freedom for your heirs to use the benefits to repay your loan or to meet more pressing needs.
- You are the owner of your individual mortgage insurance, unlike group coverage offered by most financial institutions.
- Protection from interest rate increases, since the premiums are level and they’re guaranteed for the entire term of coverage.
- The ability to select individual or joint life insurance depending on your personal situation. This way, you can benefit from a significant reduction in the premium amount.
- Decreasing term insurance which is typically less expensive than traditional level term insurance.
- The advantage of keeping your insurance, even if you refinance your loan or change lending institutions. Your coverage remains in effect.
- Benefits that cover your mortgage payments in the event of disability or critical illness.
- Some products offered by major lending institutions reserve the right to refuse to pay compensation. With group plans, questions about your health are often underwritten ‘at the time of claim,’ so if you answer the initial application incorrectly there’s a chance the claim will be denied.
- With a Life Insurance Broker, questions about your health are dealt with upfront, and the policy is underwritten ‘at the time of the application.’ So, once you receive a confirmation that you are approved, you can have peace of mind knowing that you are protected under the coverage you selected.
RIDERS
Disability Rider:
- Disability rider ensures continuity of your monthly ‘mortgage’ payments, if disabled for a specific length of time.
- Waiver of Premium in case of disability ensures that your ‘insurance premiums’ are paid, if disabled.
Critical Illness Rider:
- Critical Illness insurance rider covers up to 21 illnesses (vs. 4 by others).
- Following a diagnosis of a critical illness, if eligible, you will receive an amount equal to the balance of your mortgage.
- You can use the lump sum payment however you choose, ie. pay the balance of your mortgage or otherwise.