Bank's mortgage insurance may not be your best option...
Death of a loved one is tragic enough. Losing one's home, on top of that, would be emotionally devastating for your family. By taking the right insurance coverage, you can protect your family. The question is, should you take mortgage insurance offered by the banks or just buy term insurance?
Mortgage Insurance offered by banks are not usually underwritten - ie; it is subject to underwriting when you make a claim. This means, technically, you could be declared uninsurable when you submit a claim! Also, it tends to be expensive. You don't usually get discounts available for non-smokers and women. Although you are paying down the mortgage balance with each mortgage payment, the premiums don't go down! Further, the payout is made to the bank to payoff the mortgage - not to your loved ones.
A cheaper alternative to this is term insurance from a reputable insurance company. The premiums depend on many factors including your health, smoker status, sex, age etc. and, in general, are lower than what you pay for mortgage insurance offered by banks. Further, this tax-free payout is made to your beneficiary - not to your bank.
We can help you determine the right option for you. Call us today at 647-527-6175.