Bank coverage versus special coverage. What you need to know!
Let’s move on to the mortgage insurance discussion. Did you say mortgage insurance? Oh yeah! Yes, it is a unique name given to standard life insurance, coined with an extremely beautiful sounding name, which makes a huge difference for people who fear ‘life insurance‘. So they don’t buy life insurance, no, no, they buy mortgage insurance. I hope there are more of these unique names for good old life insurance that will persuade people to buy life insurance and protect their loved ones and their property.
Apparently, people don’t want to talk about death; So the topic of life insurance is another topic of discussion unless you have close contact with the Creator, through a heart attack or stroke. Mortgage insurance is not required at your bank or elsewhere. All you have to do is sign a waiver while you are out of the races. A waiver exempts the lender from its obligation to provide a plan that will take care of your family in the event of an early death.
Let’s go back to the statistics. Out of 1,000 30-year-olds, 125 will die before taking out a 25-year mortgage. Surprisingly, despite having such a wonderful name for this all-important plan, thousands of families lack protection and leave their dependent families at risk of losing their homes. I’m definitely happy that because banks aggressively market the plans, many families are protected. Otherwise, there would be thousands of unprotected families who would end up homeless.
Let’s review the options your family would have to make in a situation like this.
1. Will the remaining spouse or partner bear the entire mortgage burden and will the bank accept the risk? If two incomes together struggle to achieve both ends, how can one income be enough?
2. The family can sell the house, move, or rent elsewhere. Will there be a home buyer? How about the cost of selling the house? Will there be enough money after the sale or does the family owe the bank?
3. Sell the house and move in with relatives. It is not the best alternative and how many people who have charitable and generous relatives would like to join another family? Not much, I can bet.
4. It is an accepted fact that for most people their homes are their most valuable property and that they protect it with mortgage insurance.
By the way, I’m sure you’ve heard this statement from a friend saying that someone they knew is dead and the rest of the family has no money. You can immediately conclude that these people were uninsured and they may have ignored many insurance consultants like me. If you really love his family, as little as $ 15.00 a month can avoid such a possibility.
Why seek advice from a bank officer whose experience is not insurance?
Before we discuss the intrinsic details of the plans that banks and other lending institutions market, let’s fix one thing. Do you go to your dentist if he is sick? Or will you go to your GP? It is true that both are doctors, but their lines of specialty are completely different. Why, then, would someone take the advice of a bank official (your banking experience from him, not insurance) to buy protection for your most valuable asset?
Don’t get me wrong, bank officials can be very knowledgeable about the financial aspects of banking-related matters, but insurance matters are far beyond their scope. They do their homework simply by offering available mortgage plans.
Therefore, receiving advice and signing a very important document that can affect the financial future of your entire family is something that you should take very seriously. On the other hand, an insurance advisor is qualified to give you better advice on insurance-related matters.
o The plans presented by the insurance advisor provide coverage that remains at the level of the specified period.
The mortgage insurance plans that banks offer are tied to your mortgage balance, and it’s clear that as your mortgage goes down, so does your insurance coverage. In this case, if you are satisfied with a mortgage reduction, remember that the insurance company is just as happy as this reduces your liability.
Individually purchased plans are personally tailored to you, so if you’re healthy, you’ll get a better price. Unfortunately, the plans that banks recommend are group plans. It doesn’t matter how healthy you are compared to the others in the group.
o The plans we offer have guaranteed premiums and cannot be changed by the insurance company.
As you know, group plan premiums are generally not guaranteed. Mortgage insurance plans are group plans.
o Individual plans do not reduce your benefits and therefore the premium remains the same.
The mortgage insurance plans offered by banks are related to your mortgage balance, and as your mortgage decreases, your insurance coverage decreases, as mentioned above. However, the premiums the bank charges you remain the same. Does this seem fair to you?
Most insurance company banking plans leave loopholes to deny your claim.
o Individual plans will require complete medical exams by qualified medical professionals at the time of application, which will prevent beneficiaries from having problems later. It also protects your interests and those of the beneficiaries at a later time. Our qualified insurance consultants will guide you through most medical questions so that your answers are accurate and appropriate.
Most banking plans can be prepared with a few more medical questions, leaving your bank’s insurance company with loopholes to deny your claim.
Our plans do not require you to pay an additional PST. The premium shown is the final figure, not a surprise PST.
Insurance premiums mentioned in group insurance plans do not include regional sales tax. So just like the rest of your regular purchases, PST is quietly creeping in to add to your total purchases. So, when you are shopping for a fare, keep that in mind. An 8% PST can buy you a great deal of additional insurance coverage or drastically lower the cost.
With our plans, the delivery shown is the final figure, not surprisingly, PST.
o Plans provided by the insurance advisor that insure both spouses separately, therefore the insurance is paid for both deaths, for example, in the case of the death of each of the insured, two death claims will be paid separated by the same amount, thus doubling the benefit.
The bank’s mortgage plans are “first-to-die” plans, that is. The plans bear fruit and stop after the death of one of the faithful. You clearly agree that this is the purpose of this insurance. Certainly. However, wouldn’t you prefer a better option?
For example: A 45-year-old man and a 42-year-old woman who are insured by a $ 250,000 “first death” mortgage will pay $ 49.50 per month. Insuring them separately for an adult, the cost would be around $ 52.00 per month. Wouldn’t you agree that it’s worth an extra $ 2.00 a month to double the coverage, so that beneficiaries get $ 500,000? This is the advice you will receive from a qualified insurance professional.
o Plans provided by an insurance advisor can generally be converted to a permanent plan, without the need for further medical tests. So if you develop a medical condition that will render you ineligible for insurance, this benefit will be of great importance to the continuation of your insurance policy, thus protecting your family.
The bank’s mortgage plans are accurate (term) rental plans and that’s it. You have no choice.
o Our plans are traditional life insurance policies, the proceeds of which go to a specific beneficiary exempt from taxes. Insurance policies are creditor proof, which completely negates unnecessary expenses such as probate fees.
When insurance proceeds are paid from a banking plan to property, they may be open to will or creditors’ documentation.
With traditional life insurance plans, choosing the amount of coverage is always yours and requires no mortgage documents.
Again, since bank plans cover your mortgage balance, you have no other choice. For example, if you want an additional amount of coverage to protect your family, you will have to buy it elsewhere and you will end up paying an additional amount of money unnecessarily through the policy fee.
o With plans offered by an insurance advisor, choosing to use the benefit amount in the way you choose is yours, and you can make any changes when necessary. For example, when you die, your spouse has the option of paying the mortgage in full or not, depending on the husband’s needs at the time.
With banking policy, the bank is the beneficiary; Your family has no other choice.
Our plans are portable. Not tied to any property. They are based on your life, not your home or any other asset.
When you buy a mortgage insurance plan from a bank, you limit coverage to a specific property; Therefore, moving to another property requires another decade.
o Refinancing does not affect the insurance plans that the insurance advisor will provide.
Refinancing changes your mortgage balance and therefore the bank’s plan contract remains void. There will be a price increase commensurate with your current age, with additional subscription. You may not actually be able to get insurance again because your health conditions have changed.
o We offer you coverage options ranging from 5 to 21 critical illnesses with the flexibility to purchase the amount of coverage you can afford. You can also claim two separate characteristics, that is, If the insured becomes seriously ill and claims, and then dies after the claim is paid, a death benefit is also paid.
Some institutions generally add a critical illness benefit to your life insurance coverage, allowing you to choose how much you might want to buy depending on what you can afford. It also does not allow you to claim two interests, that is. If you collect a claim for critical illness benefits and are alive, the contract expires. The number of serious illnesses covered is limited.
o A qualified insurance advisor can create a plan that allows you the option to stop paying premiums and continue with your policy.
The bank’s mortgage insurance plans are term products that have no cash value, and therefore if you stop paying, the policy will expire immediately.
Most insurance agents will serve you effectively and above all handle the claim, personally helping your family when you need it most. To be sure, the actions of most insurance advisers speak louder than television commercials from banks. They will help you create a property and will surely find you one by one in your choice of location or in your home. Basically, I have hired the services of a specialist in this line for the rest of the term of the plan I bought.
Do you remember any bank having personal contact with you, such as sending you a birthday card, calendar, newsletter, or even making a courtesy call, etc.? Maybe the only time you hear about them is renewal time, which means an upsell for them.
It should be noted that conventional life insurance policies from an insurance advisor offer a discount of about 9 percent if the premium is paid annually, reducing the cost significantly. This discount factor does not arise with bank mortgage insurance plans, which are generally paid monthly or biweekly.