Mortgage Insurance bought through bank
Personal Life Insurance Policy
|Do I own the Policy?||✗ Because mortgage life insurance is a type of group insurance, it is owned by the lender who has the ability to cancel the group policy at any time.||✓ A personal life insurance policy is owned only by you. Accordingly, you are the only person with the power to cancel or make changes to the policy.|
|Can I choose the Policy's Beneficiary?||✗ The mortgage lender or financial institution is the sole beneficiary of mortgage life insurance, as well as the owner. The lender will use the death benefit proceeds to pay down the remainder of the mortgage.||✓ You decide who the beneficiary will be. In the event of death, your beneficiary can choose to spend the benefit however he or she sees fit. They do not have to put the proceeds toward paying down the remainder of the mortgage (but can do so if they like).|
|Will the death benefit remain consistent?||✗ As the amount of your mortgage decreases, your coverage drops as well. However, you have to keep paying the same premium, meaning that over time you get progressively less value for your money. With mortgage life insurance, the death benefit pays only the balance of the mortgage in the event of death.||✓ With a Personal Life Insurance plan, the amount of the death benefit does remain consistent. So long as you're paying your premiums, the death benefit will always be equal to the face value of the insurance you purchased. If you purchased $150,000 in insurance, the death benefit will be $150,000.|
|If both my spouse and I are involved in a common disaster, will the death benefit be paid for both spouses?||✗ Should both spouses pass away, the bank or lender will use the death benefit only to pay down the remainder of the mortgage. Essentially, the death benefit is paid to the lender and the policy owner's family does not receive anything beyond the knowledge that the mortgage is paid off.||✓ The insurance company will pay the death benefit, for both of the lives insured, to the specified beneficiary. As an example, if both a husband and wife are each insured for $400,000, the total benefit paid would be $800,000. Beneficiaries can use this payment as they see fit.|
|I'm in good health. Can I get a better rate?||✗ Mortgage Life Insurance premiums do not take health into account.||✓ Many companies will offer a preferred rate to you if you are in good health. Homeowners who are healthy and who have a good family medical history can qualify for significant premium discounts.|
|Is my coverage portable?||✗ If you have Mortgage Life Insurance and you switch lending institutions, you must reapply for coverage.||✓ With a personal life insurance policy, you always own your coverage and it will stay with you. Note that you might need to reapply if you decide after purchasing the policy to increase your coverage.|
|Is my Policy Underwritten when I apply for it?||✗ In the case of bank mortgage insurance, underwriting is done at the time of death. In some cases, mortgage insurance is offered with minimal background checks. This can result in major problems if the bank's insurer decides to dispute the claim.||✓ Personal Life insurance policies are underwritten at the time of application. If approved, you can be confident that the insurance company will pay the claim. Note that there is an option for the company to contest a claim, during the first two years after application, in the case of non-disclosure or fraud.|
|Can I Continue the coverage after paying off my mortgage?||✗ Your mortgage insurance expires once the mortgage is paid off.||✓ Upon paying your mortgage, you can choose to continue, convert or cancel your insurance coverage.|
|Do I have any other options or policy riders?||✗ In most cases, no options or riders are available.||✓ You can customize your policy with options and riders such as Waiver of Premium, Accidental Death, and Children's Insurance.|
|Is there any guarantee?||✗ Not guaranteed. Mortgage insurance is not underwritten until a claim is made, so they don't decide whether to cover you until you're already dead!||✓ There is guarantee upon making sure the personal policy is valid|
We reach out to experts in various ﬁnancial ﬁelds in order to determine accurately the needs and opportunities within your ﬁnancial picture.
I have known Brian for over fifteen years. I am happy with the fact Brian does not hesitate to come up with new ways to help me and my family. The latest example is helping me organize my financial life and put me on the right track. Brian’s philosophy is to educate me and my wife to make better financial decisions rather than telling me what to do which makes us more comfortable about the direction we are going.
I appreciated Brian’s ability to take some complex issues and break it down into terms I could relate to. He made insurance easy to understand.
We take a concentrated look at the forms of risk within your ﬁnances, and delineate the steps to improve overall security.
Michelle and I have known Brian for a number of years. He has provided sound advice on our mortgage which we believe has saved us thousands over the years. Brian was right there with us when markets have been down and he often shares new ideas with goal of protecting our money and putting us first. We would recommend Brian to anyone who is looking for someone who wants to deal with an advisor who shares ideas and concepts relevant to today’s market.
Brian helped set up our mortgage and also some excellent term insurance for us to cover our mortgage.