What exactly about mortgages offered by large financial institutions when it comes to purchasing life insurance?
You will agree with me that it is essential to take out life insurance with a mortgage payment clause when the death of the owner of the house occurs. It is also highly recommended to take out such insurance “privately”, that is, with an insurance company. Among other things, they offer better protection at a lower cost.
It is also important to know that most insurance is sold by advisers working with credit unions or banks, who are not subject to the rules of the Autorité des Marchés Financiers (AMF). In doing so, they are not required to analyze the real insurance needs of their customers.
What are the advantages of taking out a “personal” insurance policy rather than mortgage insurance from credit unions or banks?
By purchasing mortgage insurance elsewhere than with a credit union or bank, you will pay off your loan faster since the cost of insurance is not added to your interest rate. Over the life of your loan, this can save thousands of dollars.
Other advantages :
- Verification of your state of health before accepting the contract (and not when any claim arises).
- You own your contract and it’s you who appoints the beneficiaries of your choice (this insurance is not related to your mortgage).
- Possibility to subscribe only to disability insurance and to choose the desired amount of benefit monthly (which covers all loans, unlike credit union or bank mortgage insurance).
- Possibility to subscribe to life insurance in the amount of your choice (unlike mortgage insurance offered by credit unions or banks).
- Your credit union or bank mortgage insurance can be canceled at any time without suffering any penalty allowing you to benefit from better personal insurance according to your real need.
Insure your mortgage payments
Are you worried that you may not be able to pay the mortgage payments due, for example, to an accident or illness? If so, you don't have to worry because disability insurance can do it for you. Moreover, in the event of a disability, be aware that loan insurance can cover more than just mortgage payments. You can indeed include all of your loan payments in a single contract:
- auto loan
- car rental
- Line of credit
- credit card
- Personal loan
If you did not fill out a really complete medical questionnaire (with the bank or the cashier) at the time you took out your insurance, know that it is imperative that you do so when the time comes to make a claim. And be aware that you may be denied benefits if you fail to report certain facts, intentionally or not (even the most trivial).
With independent disability insurance, your state of health is checked at the time of subscription. This will prevent any unpleasant surprises later.
Life insurance premium comparator with mortgage
We now suggest you take the test with our premium comparator, and you will quickly find that you can save thousands of dollars over the life of your loan!
For any information or advice, do not hesitate to contact us toll free at 1.866.370.7677 anywhere in Quebec, Ontario and New Brunswick or make a simple and quick quote.