There are different types of reasons for buying different types of insurance. Some home buyers purchase lenders insurance from the bank when they get a mortgage. Most consumers don’t know they can use individual insurance as an alternative to their lenders mortgage insurance. Not to disparage the bank’s lender insurance, because it can have it’s uses, here are some highlights of the benefits of using personal life insurance as opposed to lenders insurance:
COVERAGE: Individual life insurance death benefit stays the same… while bank insurance coverage (lender insurance) reduces over time (called “decreasing mortgage”),
COVERAGE: Individual life insurance can be combined with disability, critical illness to include medical expenses, accidental, or health-related deaths.
PRICE: Lenders insurance tends to be more expensive over time than individual insurance!
PREMIUMS: With the right Individual life insurance policy can be more flexible than a ballet dancer. Want more coverage? Increase your premiums! Want lower monthly payments? Decrease your premiums!
DEATH BENEFIT: Guaranteed with personal life insurance, which is underwritten before the policy is issued, therefore death benefit is secured! Unlike banks (mortgage insurance) which is underwritten at death and may be denied.
DEATH BENEFIT: Given straight to the beneficiaries with 100% freedom of use, distinct from bank insurance, where it’s directly paid to the mortgage lender and covers only the amount owing on the loan.
DEATH BENEFIT: Is typically HIGHER than your mortgage debt and after-death costs added-up, leaving your family with extra cash for their future needs!
Speak to one of our Expert Advisors and find out how much you can save each month!