Your home is your most valuable asset. You buy home insurance to protect it from fire and theft, and you buy mortgage insurance to protect your payments in case of death, and you buy critical illness insurance so you can still pay your mortgage when you are sick and don’t lose your home.

But where do you buy this insurance from? Banks are in the business of lending money. I am in the business of insurance! Mortgage insurance should always be purchased from a licensed life insurance representative. Click HERE for a comparison between the banks insurance and why you should purchase it through me.

CBC Marketplace Exopsé on Bank Mortgage Insurance

Check out this video clip from CBC Marketplace, an expose on the bank’s mortgage insurance.

CBC originally aired a Marketplace broadcast on February 6, 2008 where they met with 2 families who had purchased the bank’s mortgage insurance and thought they were protecting themselves and their families, only to have their claims denied when they became sick or died. The coverage is meant to provide peace of mind, but does it when then claims are denied?

Before you check “yes” on your mortgage application for the mortgage insurance at your bank, ask yourself these questions:

1. Can I choose my own beneficiary for the insurance proceeds?

• If the insurance is purchased at the bank – NO, because the mortgage lender is the policy owner, they automatically become the beneficiary of all proceeds.
• If the insurance is purchased from your licensed insurance representative  – YES

2. Can I apply for more coverage for other needs?

• If the insurance is purchased at the bank – NO, you can apply only for an amount equal to the initial mortgage through a mortgage lender.
• If the insurance is purchased from your licensed insurance representative  – YES

3.  Will my coverage remain level throughout the mortgage period?

• If the insurance is purchased at the bank – NO, The amount of coverage available through a mortgage lender is limited to the outstanding mortgage balance. This coverage amount decreases with each mortgage payment made, but your cost will remain the same.
• If the insurance is purchased from your licensed insurance representative  – YES

4.  Are my premiums fully guaranteed in the contract?

• If the insurance is purchased at the bank – NO, Premiums paid through a mortgage lender are on a group basis and therefore can be increased on a group basis if the experience of that group becomes favourable.
• If the insurance is purchased from your licensed insurance representative  – YES

5.  Could I pay less if I am in good health and don’t smoke?

• If the insurance is purchased at the bank – NO, Most mortgage insurance through the banks consider only the age of the borrower to determine your cost of insurance. There is no preferred pricing for better health risks.
• If the insurance is purchased from your licensed insurance representative  – YES

6.  Does my coverage stay in force if I move or change mortgage lenders?

• If the insurance is purchased at the bank – NO, Mortgage insurance at most banks is not portable. If you move or change mortgage lenders, you must re-apply and quality for new coverage with the cost based on your new age, which increases the older you get.
• If the insurance is purchased from your licensed insurance representative  – YES

7.  Can my coverage extend past my mortgage period?

• If the insurance is purchased at the bank – NO, Since mortgage lenders only offer coverage to protect the outstanding mortgage balance, once your mortgage is paid off, regardless of time, your insurance coverage will cease.
• If the insurance is purchased from your licensed insurance representative  – YES

8.  Can I convert my coverage to a permanent plan, even if my health has changed?

• If the insurance is purchased at the bank – NO, There are no conversion privileges with your bank’s mortgage insurance.
• If the insurance is purchased from your licensed insurance representative – YES

9.  Am I guaranteed to receive advice from a licensed insurance representative?

• If the insurance is purchased at the bank – NO, Service representatives with mortgage lenders are not licensed insurance advisors, and therefore cannot offer expert advice regarding your insurance needs.
• If the insurance is purchased from your licensed insurance representative  – YES

10.  How do I get a quote to compare what the bank has offered and what you can offer?

• Call me or email today, I would be happy to discuss your needs with you.