What are the 8 Main Reasons for you to buy Personal Life Insurance Versus Bank Mortgage Insurance?

  • Mortgage Insurance purchased through the Bank is a contract between the Bank and the Insurer, not you the insured. When you purchase your own Mortgage Insurance through a personal policy, the contract is between yourself and the Insurance company.
  • Insurance through your Bank is NOT underwritten at the time of application but rather at the time of claim. Your Personal Insurance is underwritten at the time of application – avoiding the problem of declination at the time of claim.
  • At the Bank, the same premium rate per $1000 of coverage applies to both males and females as well as Smokers and Non-Smokers . Your personal owned insurance spreads the risk fairly between Males/Females and Smoker/Non-Smokers.
  • The premium rates on an ongoing basis at the bank are not guaranteed…it can change at any time per the decision of the Insurer. Your personal insurance policy premiums are guaranteed for the duration of the term – i.e. 20 Year Term – rates do not change for the next 20 years.
  • The premiums at the bank are guaranteed to increase every 5 years. Again, your personal policy premiums are guaranteed for the duration of the term – i.e. 20 Year Term – rates do not change for the next 20 years.
  • Your Mortgage Insurance Beneficiary at the Bank is the Bank…no exceptions! Your Personal Mortgage Insurance can name any Beneficiary and that Beneficiary can decide how they wish to allocate their insurance proceeds.
  • Your Mortgage Insurance at the Bank renews every five years – what if you no longer qualify due to your health? Personal Term Insurance remains in place as long as you continue paying your premiums!!  No further medical qualifications for the life of your policy!
  • At the Bank, when you sell your property and re-locate, you must once again re-qualify for a new Mortgage Insurance policy. Your Personal Insurance is always with you regardless of how many times you may re-locate!
So the reality of the above numbers is that a Male age 30 with a 20 year Mortgage through the Bank will pay $11,150.00 over the 20 years versus $4,719.20 through Empire Life.  The Female at age 30 over 20 years will pay $11,150.00 at the Bank versus $3,727.20 through Empire Life!!   Money Sense!?
 
 

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