This is the third in the series of posts illuminating the benefits of acquiring Mortgage Insurance from an insurance professional rather than from the lender when securing your mortgage. In the previous posts you learned that you have the power to decide to benefit from Underwriting at time of issue rather than at time of claim as well as possible lower personalized premiums. Today we look at the difference in the payout in the event of a claim.
Difference # 3
|Individual Life Insurance|
|Fixed payout:When you purchase an individual insurance policy you pay premiums for a pre-determined amount of coverage. Therefore, if you pay premiums for $100,000 of coverage your beneficiary will receive $100,000.|
|Lender Mortgage Insurance|
|Decreasing payout:The Mortgage insurance sold at the bank covers a decreasing amount. While your premiums remain the same throughout the life of the mortgage, they cover a decreasing amount as it gets paid off. Mortgage insurance will only pay off the balance of your mortgage when you make a claim.|
Stay tuned for Difference # 4. If you want to have a conversation about, and/or review of your current strategies, please call (604) 607-3585.
Alexander ‘Lexx’ Potter