Chris's Blog

24 Aug 2018
Mortgage Insurance
  • BY: Chris Molenaar

I'm not a mortgage or insurance person, BUT I have talked with mortgage and insurance professionals at length on why mortgage insurance through the bank might not be the best product.

Here are a couple of reasons why.

  1. They don't prequalify you enough to give you discounts on your premium if you qualify for them.
  2. They decide if you qualify for the insurance only after you make the claim.
  3. The life insurance benefits you receive from the bank are connected to the amount of your mortgage.  This means as you pay down your mortgage the amount of life  insurance you have goes down as well.
  4. The beneficiary is the bank.
  5. It's attached to the mortgage, so every time you transfer or open a new mortgage you have to open a new life insurance policy.

Yes, it's convenient, but make sure you look at your options!  If you have any questions, I would be happy to introduce you to some amazing mortgage and/or insurance professionals who can assist you in your area.

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