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August 31, 2012
Protect your home, not your lender, with the SAFEBRIDGE Mortgage Insurance Program
Most lending institutions offer mortgage life insurance as part of their mortgage packaging; but one must be careful before signing on the dotted line. You could find yourself locked into an insurance policy that does more to protect your lender than you.
For example, there are many cases that have been documented that even though consumers provide information about their state of health and other pertinent details when applying for insurance through the bank, where their information is frequently not forwarded to the insurers until a claim is filed.
“The couple paid insurance premium until the woman's death 22 months later. But the insurance company rejected the mortgage-insurance claims filed after her death…even though the bank had issued the policy.”
In one case, a couple from the Eastern Townships of Quebec who applied for mortgage insurance when they set up their mortgage with the National Bank of Canada, included in their declaration that the woman was undergoing cancer treatment.
The couple paid insurance premium until the woman's death 22 months later. But the insurance company rejected the mortgage-insurance claim filed after her death, saying that the woman had not been insurable from the outset, even though the bank had issued a policy.
The surviving partner fought the insurance company for more than seven years, before the Quebec Court of Appeal ruled in the couple's favor. The court found that the couple had every reason to believe that they were insured and that the bank, as the insurance company's agent, was at fault. The Supreme Court of Canada refused to hear an appeal by the insurer.
This is just one small example of many similar situations that happen more frequently then we wish were the case, thus increasing the level of concern. The best thing you can do for your family is spend a couple of minutes doing your due diligence and making sure that all your “t’s” are crossed and your “i’s” are dotted.
Here is how the SAFEBRIDGE Mortgage Insurance Program can help you protect what matters most to you and your family:
It’s about having control. With the Personal Mortgage Insurance Program you own the policy, not your lender. That means that you have the freedom to choose your own beneficiary, decide what type of insurance best suits your individual needs and switch your mortgage for a better rate at another lending institution without jeopardizing or having to medically re-qualify for your life insurance coverage.
It’s about being covered. Personally owned mortgage insurance is medically underwritten upfront. This means that any life insurance proceeds are guaranteed to be paid out and in a timely manner. In comparison, lending institutions begin in-depth underwriting at the time of claim. If a medical condition is discovered after the fact, you may be ineligible to make a claim for any cause or condition; at the very least, the claim process can be significantly delayed.
It’s about getting the most for your money. Mortgage Insurance offered by the lending institution decreases as the mortgage is paid down, yet your premiums remain the same. With personally owned Mortgage Insurance, the coverage remains level. In the event of a claim, your premium dollars will provide your beneficiary with guaranteed life insurance proceeds at the same level of coverage you insured yourself for at the time of application.
It’s about saving your money. What seems to get the attention of most home owners is not the poor underwriting, the decreasing death benefit, or even the lack of control. When you own personal mortgage insurance, you get all of the above and in almost every case, all for a much lower cost to you. Because you are not tied to your lender directly, you have the option to search the market for the most favorable insurance premium you can find. In the end, you get a superior insurance policy for a substantial savings.
If you are interested in exploring how you can save on your insurance premiums, and in addition, ensure that when you do purchase insurance for the purpose of your mortgage, you are getting exactly what you paid for, please feel free to contact us directly for your personalized quote.
Chris Karram is a Financial Consultant with SAFEBRIDGE Financial Group. Chris specializes in unique investment, insurance and retirement strategies, and has provided insurance and investment solutions for many families throughout the GTA. You can reach Chris directly at 416.466.5858 or by email at firstname.lastname@example.org.
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