Why you should think twice before getting your mortgage insurance from the bank. Mortgage insurance through a licensed life insurance company versus a bank or credit union is not the same.
Mortgage Through an Insurance Company or A Bank?
If you're looking at buying mortgage insurance, or even if you already have it, read this first. You may be surprised to find out how a mortgage insurance policy offered by your bank is designed to protect the bank's best interest and not yours. Armour insurance offer's protection from many life insurance companies. We'll use Wawanesa Life as an example for this case.
Coverage Does Not Decrease
With Wawanesa Life, your coverage amount stays the same. It does not decrease as the mortgage is paid down. With the Bank your mortgage insurance coverage is always equal to the mortgage amount. As you work to pay your mortgage down, you are covered for less and less with the bank. In the last year of your mortgage you could only be covered for the amount of your mortgage. Yet, you will still be paying the same premium amount as you did when your mortgage was worth $300,000.
Wawanesa Life's mortgage insurance is fully portable. This means that you can transfer your insurance to any house, new or old. The Bank's mortgage insurance runs out as soon as your house is sold or traded.
Wawanesa Life's mortgage insurance offers the greatest flexibility. Upon death, your family has the option of paying off the mortgage or investing the funds.The Bank's mortgage insurance must be used to pay off the mortgage regardless of interest rates and other investment opportunities.
Shopping is Allowed
Wawanesa Life's mortgage insurance allows you to shop for better interest rates when the mortgage renews. The Bank's mortgage insurance penalizes you for shopping with higher premiums and requires that you are still insurable.
The bank's mortgage insurance must be used to pay off the mortgage. Regardless of interest rates and other investment opportunities. Wawanesa Life's mortgage insurance offers a range of choices for plans and benefits.
With Wawanesa Life you are allowed a 30 day grace period for missed premiums. With the Bank a missed mortgage payment often means lost coverage.
Lucky for you and me the airport doesn't employ car mechanics to repair broken down airplanes. Insurance can be a complicated product and it deserves the attention of a qualified professional insurance adviser to ensure that you have the correct coverage for the best rate. With Armour, that is exactly what you get.
With the Bank you're dealing with a banker about insurance matters. This often results in the coverage being spread all over.
Video: Watch the CBC - In Denial episode that uncovers banks denying mortgage insurance claims when they're customers need it the most.
If you have a mortgage that is currently insured by the bank, or are looking at starting a new mortgage. Get in touch with us. Call us today or fill in the form below and we'll make sure you're covered.
We can even help you move your insurance from the bank!
Need help? Give us a call and we'd be glad to help you with your quote!