Are you buying a new home? Congratulations! If you are like most Canadians, you are probably getting a mortgage at a bank. And they are probably showing you how easy it is to get mortgage life insurance. So you sign up, and everything is good. Or is it?
There is no question that the easiest way to buy insurance to pay off the mortgage in case you die is to get mortgage life insurance at the bank.
BUT DID YOU KNOW:
- Bank mortgage life insurance is a type of No Medical insurance, often with very little support to ensure that the no medical questions are answered correctly. That assessment is only made if and when you die! If you have a medical condition and you answer one of the questions incorrectly, your claim may be denied!
- The death payment under a bank mortgage insurance policy is payable to the bank to discharge the mortgage. There is no flexibility to make the payment to your beneficiary and let them decide how to handle the bills.
- The amount of coverage under the bank plan is equal to the mortgage amount and decreases as your mortgage decreases.
- If you change your mortgage lender, you will need to re-apply for your insurance coverage and likely pay a higher premium.
- In spite of what you might think, bank mortgage insurance often costs more than other insurance policies that are designed to meet your specific needs.
In other words, a bank mortgage insurance policy works great for the bank – but may not be the best plan for you.
Canada Protection Plan offers insurance protection that is right for you. One of our Licensed Insurance Advisors can help you to figure out how much and what kind of insurance you need. That may be permanent insurance or it may be term insurance. Traditional insurance may be right for you; or no medical insurance may be the plan you want or need. We will help you to make the right decisions, so that you understand and manage ALL of your life insurance needs.