Portability of the policy
The insurance policy we offer you is portable and remains unaffected in case you relocate. But this portability is not provided by the financial institution. If you change your lender, the policy is cancelled.
The coverage provided by mortgage insurance doesn’t decline unless you request. Even if you request for a decline in coverage, your premium decreases at a proportional rate. But in case of financial institution, the coverage amount is equal to the mortgage amount. With the gradual decrease of mortgage amount, coverage also decreases leading to a drastic reduction of your benefits, while your premium amount remains the same.
Retention of coverage
Insurance company allows you to retain your coverage after you pay off your mortgage. On the other hand, coverage obtained in insurance through financial institution terminates after you pay off your mortgage.
Protection against the effect of renewal
If you purchase mortgage insurance through us; once your policy is approved, you don’t have to face the hassle of renewing it as insurance can be done for a term of 10 years/15 years/20 years/30 years. But again, if you have done it through a bank, after a period of five years, the policy terminates and you have to renew it again, meaning thereby you will need to re-qualify and may eventually end up paying higher premiums.
The above comparison makes it evident that buying mortgage insurance through a life insurance company is in every way more beneficial than buying it through financial institutions. However, due to lack of awareness, majority of people still find it convenient to buy it through these institutions, especially when it is being offered along with bank mortgage.
Being an Insurance Advisor with considerable experience of the intricacies of this field, I can not only advise you to protect your home with mortgage insurance, but can also show the way to protect and utilize your invested insurance money during times of dire need.
Certain points should be kept in mind before you consider buying mortgage insurance:
Be sure that you qualify for insurance
Mortgage insurance policies involve many terms and exclusions. Understand their meaning and their application.
If you have any pre-existing medical conditions;
for clarification, always call the insurance company directly (NOT the bank that sold you the coverage).
If you have concerns about any pre-existing medical conditions; call your doctor Shop around.
It’s better to buy insurance from a licensed insurance broker
who will explore any medical issues at the initial stage.
Consider buying or topping up an individual life insurance policy to cover your mortgage.
Know your coverage
You may already have adequate insurance coverage through your work or other policies. According to insurance experts: it’s better to buy one traditional insurance policy than purchase a number of small policies for a variety of products.
Always ensure first that you need insurance before you buy it.
Mortgage insurance is meant to protect your loved ones from making mortgage payments in case of any foreseeable circumstance. It may not be applicable if you do not have any dependents who would need to keep your home in such circumstances.
As an independent insurance advisor working through Punjab Insurance Agency, I deal with different insurance companies offering plans for different types of insurance. I can explain to you in detail, the insurance plan options and coverage that are suitable for your needs and resources. Besides, I can also help you to purchase mortgage insurance, super visa insurance, disability insurance, critical illness insurance, extended medical plans, group medical plans, RESP, RRSP, travel insurance, TFSA accounts, health and dental plans along with estate planning suitable for your needs and resources.
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