Personally Owned Mortgage Insurance vs Bank Owned Mortgage Insurance:
When you go to sign off on your mortgage it is very typical for the lender to offer you mortgage insurance. This is life insurance that pays the lender off the balance of your mortgage should you die. You think you are making the best decision by getting the insurance in order to provide for your loved ones should you pass. However upon further review personally owned life insurance may be your best option from a cost as well as coverage standpoint.
There are many compelling reasons why choosing to own personal life insurance over bank offered mortgage insurance is the best value. With personal life insurance you pay for a predetermined face amount that doesn’t decrease over time as your mortgage is paid off. You have guaranteed rates that are outlined at the outset of the policy. You name your own beneficiary and not the lender. You have the option to convert your term policy into a permanent plan in the future regardless of your health whereas with mortgage insurance your coverage expires with the mortgage. And you are underwritten up front so that your premiums reflect your own health and not that of a pooled group.
Contact us to learn more about your current insurance plan and how there may be better options available to you at a cost savings.
Insurance products and services are offered through JSB Financial Services Inc.
Phone: (905) 689-2425
Toll Free: (1877) 689-2425
Fax: (905) 689-2428