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Mortgage Insurance

Lender Mortgage insurance: Not always a sure thing

If you have a mortgage on your home, chances are good you also have mortgage insurance. The idea is that if you should die before paying off the mortgage, the coverage will kick in and pay it off for you. It’s meant to offer peace of mind and to reassure you that your family will be able to stay in your home if anything should happen to you.

The reality falls a little short of that. Families that are faced with making a claim who bought their mortgage coverage through the lender thought they were protected, only to have their claims denied when they died.

The lender offers convenience, but individual mortgage insurance offers portability and flexibility.

By going through Bayside Associates you can obtain your mortgage coverage with the best possible rates as well you are able to:

  • Renew or convert it whereas at a lender it is non-convertible
  • Transfer the coverage to any house you purchase in the future whereas at the lender it runs out when the house is sold
  • Choose the amount of coverage and the coverage does not decrease as the mortgage declines whereas at a lender the coverage decreases as the mortgage is reduced but yet the premium does not reduce
  • Own your own policy whereas mortgage insurance through the lender is owned by them as a form of group insurance and as a result they have the ability to cancel the group policy at any time
  • Decide the beneficiary which allows the beneficiary to decide on how they chose to spend the death benefit, if held through the lender they are the sole beneficiary and they will use the benefit proceeds to pay down the remainder of the mortgage
  • Keep the death benefit consistent whereas through a lender as the mortgage decreases the coverage drops yet you remain paying the same premium
  • Qualify for preferred rates yet coverage through a lender does not take your health into account and you are grouped into group rates
  • Know that your coverage is underwritten up front with a personally held policy and if approved you can be confident that the death benefit will pay out if the policy is in good standing whereas coverage through a lender is underwritten at death which can result in a denial at the time of claim
  • Even after your mortgage is paid off you can continue on with a personal policy on provided you continue to make the payments whereas through a lending institution once the mortgage is paid off you no longer have coverage

Mortgage Insurance Comparison

Individually-owned Mortgage Insurance Through your Mortgage Lender

Insurance Plans Available

Term or Permanent

Term

Beneficiary

Anyone you decide

Your Mortgage Lender

How Insurance Proceeds are Used

Your beneficiaries decide. If the mortgage rate is low, it may be better to invest the death benefit rather than use it to pay off the mortgage.

Pays off the mortgage

Premium Frequency

Monthly, quarterly, semi-annually, annually (depending on the carrier)

With your mortgage payment

Additional Life Insurance Needs

You can take care of all your other insurance needs with one policy

Only covers the mortgage

On Going Coverage

You're either covered until age 80 or you can convert to any eligible permanent or universal life policy; depending on your policy’s provisions

Your insurance ends when your mortgage is paid off

Portability

You insurance stays with you even if you refinance or change lenders

If you move your mortgage, your insurance ends and you have to re-qualify with the new lender. If you refinance your mortgage you may need to re-qualify, even though you're with the same lender.

Insurance Benefit

You can get a level benefit, or you can decrease your benefit over time to match your mortgage

Decreasing insurance benefit as your mortgage decreases

Premium Guarantees

Your premiums are guaranteed, as per the contract

Premiums are not guaranteed

How long are Premiums Paid?

Will vary depending on the plan chosen

As long as the mortgage exists

Premiums

Your premium is based on gender, smoking status, health and lifestyle factors

Grouped

 

 

 
 

Seminars

Better Business Bureau Lunch and Learn

Date: April 20, 2017
Check-in/Registration: 11:30am
Lunch: 11:45am
Seminar: 12-1pm

Location: Country Hills Golf Course-1334 Country Hills Blvd NW, Calgary, AB T3K 5A9

 

Contact Us

Address:
102, 90 Freeport Blvd NE
Calgary, AB T3J 5J9
Bus: (403) 275-4043
Fax: (403) 275-5655
General Email:
email@baysidemail.com