Compare Insurance Options
| Our Individual Insurance Product |
Your Bank's Insurance Product |
|
| Are you the owner? | YES | NO, it's the Bank |
| Can't be cancelled if your health changes? |
YES | NO |
| Extendable past mortgage? | YES | NO |
| Payable to any beneficiary? | YES | NO, only to the Bank |
| Rates Guaranteed? | YES, at the time of issue | NO, rates will likely increase |
| Underwritten at time of issue? | YES | NO, at the time of your death |
| Portable coverage? | YES | NO |
| Level coverage available? | YES | NO |
| Disability & Critical Illness protection available? | YES, an option | NO, usually not an option |
With your Bank's insurance product, the Bank is the owner of the insurance policy. That means only the Bank can determine who will be beneficiary of the policy or make any changes to the policy. It's better to be in control of your own mortgage life insurance policy.
Can't be cancelled if your health changes?
Your mortgage has two key terms. The amortization period and the mortgage term. The amortization is usually 20 or 25 years, but the term (the period in which your renew your mortgage) can be as little as six months. If your health status changes, you may be ineligible for coverage when your renew your term, even if you have many years left to pay out your mortgage.
Depending on your needs, you can purchase a policy that will continue to provide convenient and inexpensive coverage even after your mortgage is paid off.
With the Bank's insurance product, only the Bank can receive the proceeds upon your death. In addition, the Bank will usually charge a fee of up to three months interest as a penalty for the early payment of your mortgage balance mid-term. Why not have a policy that gives you, and not the Bank, the flexibility to decide what you want to happen in the event of your death.
With our recommended insurance product, the rates for the entire life of the contract will be presented to you at the time of issue. Therefore, there will be no surprises down the road and you will not risk the possibility that your rates become so high that it becomes like making an extra mortgage payment.
Underwritten at time of issue?
If your policy is underwritten at time of issue, it means that your insurance company will provide coverage based on your health status at the time of your application and subsequent issue. If you do not go through this process, you may become ineligible for coverage on a term renewal and be left with no coverage to cover your mortgage balance at time of disability or death.
Go ahead - fire your bank! Our recommended insurance product is completely portable. Which means your coverage stays in place regardless of where you place your mortgage. This gives you peace of mind knowing that you can change financial institutions without concern of loosing or having a lapse in your insurance coverage. It means, you can always get the best interest rate available.
Level coverage is available. Ask us for more details.
Disability & Critical Illness protection available?
With all our recommended products, additional coverage for disability and critical illness is always an option. With some bank products, these are never available.
