Mortgage Insurance

Who's in Control of Your Mortgage Insurance?

Mortgage Insurance makes sense. Of course it does. Mortgage Insurance Protection ensures that your family will be able to stay in your home while giving them needed stability at a critical time, and keeping options open for the future.  But, did you know that you don't have to buy your mortgage insurance from the bank? Most people don't. Most people aren't aware that there is another option.

 

Who owns your policy?

When you purchase an Individual Personal Policy you own it. Coverage through a bank, however, is under a group policy owned by the bank! And, because the bank owns the policy, you have no control over the master policy and its limitations. When you own it, you have complete control.

 

No freedom of choice! The provisions of the bank group policy are the same for everyone. You can set the features of your own plan to suit your needs, not the bank’s with an Individual Personal Plan. It allows you to select the type of plan that best suits your needs and pocketbook. The choice is yours!

 

Flexibility.

With an Individual Personal Policy you can purchase any amount of coverage you require. The policy is totally flexible. With the Bank Plan, the face amount of your policy can only be for the exact amount of your mortgage, no more, no less.

 

With an Individual Personal Policy you can purchase any kind of insurance. The Plan you choose can be Term (level or decreasing), or Permanent (level, with or without cash credits). A Bank Plan is always decreasing to cover the balance owing; as your mortgage declines so too does the term insurance.

 

Here are some key points you should keep in mind when deciding what’s best for you in terms of Mortgage Insurance:

An Individual Personal Policy cannot be cancelled unless you personally elect to cancel it; and you have the freedom to do this if you choose. The bank can cancel your policy at any time. You have no flexibility.

 

Your Individual Term Policy may be converted to a more permanent insurance policy, if you so choose, regardless of your health, usually up to age 65. The Bank Group Mortgage Insurance is not convertible. Your Bank plan insurance will expire!

 

Critical Illness and Disability Insurance are additional living benefits now available to cover your mortgage payments in case you don’t die, but survive a catastrophic event, like a Heart Attack, that disables you and your ability to earn a living to pay the mortgage.

 

Do it Your Way.

For most people, providing a home for their family brings security. Wouldn’t you like to know that you and those you care about are protected on your terms?

 

When you own an individual policy you have complete control, like choosing the beneficiary. Unlike the Bank, there are no deadlines connected with your Individual Personal Policy. It may be continued as long as you wish and, depending on the plan or insurer you select, can be used to cover any mortgage anywhere. A bank plan does not follow you. Not even to the next bank’s branch.

 

Statistics Canada, in a recent report, asserted that Canadian families move their mortgages once every 3 - 5 years.  If you have a mortgage loan on a principal residence, a second residence or a building from which you earn an income it makes sense to protect yourself from the risk of personal loss, whether from death, disability or a critical illness.

 

With the bank, the group coverage terminates if

• the mortgage loan is repaid, or assumed  
• the property is sold
• the insured no longer resides on the premises. For example, if you rent your home to someone else, coverage is terminated.
• the mortgage is in default
• you change branches for a better rate
• the group policy terminates. 

This doesn't offer a great deal of comfort to the insured. You have no control.

 

Saving the Best for Last

An Individual Personal Policy covering both spouses insures each of them for the same amount. The proceeds will be paid upon the death of either spouse and the survivor’s coverage may be continued, if requested. Upon the deaths of both spouses, the proceeds are paid twice!

 

On the other hand, with group coverage through a bank, even though both husband and wife are covered under the terms of the policy, benefits are paid on the first death of either one insured, not both. And, coverage on the survivor terminates. It cannot be continued!  

 

Finally, Group coverage premiums are subject to 8% P.S.T.  An Individual Policy Premium is NOT subject to any P.S.T.

 

And, if you’re still undecided; coverage under the group bank plan is non-renewable. With an Individual Policy, your premium renewal is guaranteed!

 

Now, Who's Going to be in Control of Your Mortgage Insurance?

Since more of us will be living longer and facing many health related obstacles, mortgage insurance is more necessary than it has ever been before. Being well informed, and understanding what is at stake, is vital in making decisions that affect the future security of you and your family.

 

Consider a sensible alternative to insuring through a bank. Contact Kinnell Insurance and Financial if you have questions or concerns about your current insurance plans. We have several flexible insurance plans that can be designed specifically to accommodate your budget and your needs. Ask about our Blue Cross Mortgage Plan, which affords you the freedom to choose the coverage that suits you best.

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If you have questions or would like a price, email us, or call us today on our toll free line at 1-877-735-4487

Jim Kinnell, President of Kinnell Insurance and Financial Inc. and has been dedicated to providing health and living benefits offering the best combination of quality and price and 'peace of mind'. Visit http://www.Kinnellinsurance.com or contact him by email at : jim@kinnellinsurance.com

 

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