Term Insurance vs Mortgage Insurance
The bank's #1 best kept secret...
As I was working with a client of mine recently to upgrade his insurance, he mentioned that his bank representative said that "mortgage insurance" was mandatory coverage to protect his loan (his mortgage).
Well guess what... It's not. You have a much better and potentially cheaper option called Term Life Insurance.
The only real benefit of mortgage Insurance is that it's convenient. But as you must have figured it out by now that convenience comes at a cost.
Luckily for him and you there's a better solution out there!...
Take a look at the comparison chart below so you can see for yourself:
- When you switch mortgage providers, you usually need to reapply for your mortgage insurance.
- With typical mortgage insurance, the lender owns the policy and assigns itself as the beneficiary.
- Typical mortgage insurance declines as your mortgage balance decreases, however your premiums stay the same.
- Typical mortgage insurance is only underwritten at the time of death.
- Typical mortgage insurance rates are not guaranteed.
Don't buy this stuff!
Term Life Insurance
Creme de la creme
- Your mortgage protection remains intact even if you switch lenders
- You own the policy and choose the beneficiary you want to receive the death benefit.
- Your coverage amount remains the same even as your mortgage balance decreases
- You benefit from insurance underwritten at the time of application.
- Your rates are guaranteed for the life of the policy - it's right in the contract.
- Usually cheaper than bank offered product.
Request a quote!
In conclusion, I managed to save my client $400 per year (which represents just over 40% in savings) and over a period of 25 years that's a whopping $10,000! So what are you waiting for...call me for a quote! 613-416-9649or contact via e-mail.