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Creditor Insurance Pitfalls The Perils Of Mortgage Life Insurance Do you have creditor life insurance from your bank for your mortgage, line of credit or other loans? If yes then watch the following short 20 minute video to understand why you may never get paid. Creditor Mortgage insurance offered via the banks and some other financial institutions has several pitfalls you need to be aware of: The product is actually underwritten at time of claim. In the story above this is what the people profiled found out the hard way when their claims were denied. They thought they were protected but in the end they were not. The bank, if the coverage pays, is the beneficiary of the policy - not your family! If you change lenders you have to requalify at the new financial institution - what if your health has changed and you can't get coverage? The coverage is 'decreasing term', you pay the same premium but get less coverage each month because you are paying down the mortgage and that is all the coverage pays. Why would you want this type of plan? Often it is easy to get just answer 3 or 4 simple questions. That is one of the major drawbacks in my opinion. Many clients have told me they were led to believe they couldn't get the mortgage or loan if they didn't buy the coverage offered. This is not true. Purchasing your own personal term life plan is the better option. A personal plan can be customized to your overall needs and is often a lot cheaper than the bank program. For example: $300,000 of mortgage life insurance via TD is $120/mth male age 46 $300,000 of 20 year term life insurance via Manulife is $70/mth Almost a 50% savings! Call me today or send me an email and I would be pleased to provide you with a comparison quote.
The Perils Of Mortgage Life Insurance Do you have creditor life insurance from your bank for your mortgage, line of credit or other loans? If yes then watch the following short 20 minute video to understand why you may never get paid. Creditor Mortgage insurance offered via the banks and some other financial institutions has several pitfalls you need to be aware of: The product is actually underwritten at time of claim. In the story above this is what the people profiled found out the hard way when their claims were denied. They thought they were protected but in the end they were not. The bank, if the coverage pays, is the beneficiary of the policy - not your family! If you change lenders you have to requalify at the new financial institution - what if your health has changed and you can't get coverage? The coverage is 'decreasing term', you pay the same premium but get less coverage each month because you are paying down the mortgage and that is all the coverage pays. Why would you want this type of plan? Often it is easy to get just answer 3 or 4 simple questions. That is one of the major drawbacks in my opinion. Many clients have told me they were led to believe they couldn't get the mortgage or loan if they didn't buy the coverage offered. This is not true. Purchasing your own personal term life plan is the better option. A personal plan can be customized to your overall needs and is often a lot cheaper than the bank program. For example: $300,000 of mortgage life insurance via TD is $120/mth male age 46 $300,000 of 20 year term life insurance via Manulife is $70/mth Almost a 50% savings! Call me today or send me an email and I would be pleased to provide you with a comparison quote.
Do you have creditor life insurance from your bank for your mortgage, line of credit or other loans? If yes then watch the following short 20 minute video to understand why you may never get paid.
Creditor Mortgage insurance offered via the banks and some other financial institutions has several pitfalls you need to be aware of:
Why would you want this type of plan? Often it is easy to get just answer 3 or 4 simple questions. That is one of the major drawbacks in my opinion. Many clients have told me they were led to believe they couldn't get the mortgage or loan if they didn't buy the coverage offered. This is not true. Purchasing your own personal term life plan is the better option. A personal plan can be customized to your overall needs and is often a lot cheaper than the bank program.
For example:
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