Insurance

Comment:

I never used to be a big fan of insurance, then I got older and started to realize that there is a time and place for everything in our lives and life insurance came more on the radar. As a mortgage agent I am obligated to offer my clients mortgage insurance and/or get them to sign a waiver, but insurance touches many aspects of our lives so do your homework and get the right insurance for your needs. (See below to learn more.)

When you own a property, or even if you are renting, then at the very least you probably want content insurance, remember even the cost of replacing all the stuff in your kitchen can get quite expensive. If you get a mortgage then insurance on the property is a condition of the mortgage, so then it is a matter of where to get the policy.

There are some excellent firms out there, but if you are going for cost controls, think about where you can get group rates: associations, college/university alumni services, or other groups. Also think about your deductible, the higher you can handle the cheaper the premium (this applies to cars too), but make sure you have good coverage for your home. When in doubt speak to a reputable insurance broker. Ask around this is not a simple purchase, get someone who will be there for you when you need it.

Articles:

Perils of a mortgage life policy - Article (Toronto Star - April 2007)

Comparison of Mortgage Life Insurance
Generally, a mortgage is issued under the name of both spouses. Your mortgage insurance should as well.

Bank	Insurance Company
1.
-Insurance is owned by mortgage	-Insurance is owned by the policy owner.
2.
-Insurnace is only available to person(s) listed on the mortgage agreement.	-Insurance is available to any person(s) involved in paying mortgage, regardless of the mortgage agreement.
3.
-Insurance may have to be reapplied for and requalified for if the mortgage agreement is altered.	-Insurance is fully portable between any future mortgage agreements.
4.
-Insurance is cancelled once the mortgage has been paid.	-Insurance may continue after the mortgage has been paid under the control of the person(s) insured.
5.
-Insurance proceeds are not protected from creditors.	-Insurance proceeds are protected from creditors. Details can be provided.
6.
-Insurance proceeds are paid to the mortgage company regardless of the beneficiary's wishes.	-Insurance proceeds are paid to the beneficiary. The beneficiary controls how the proceeds are invested.
7.
-Premiums are controlled by the mortgage company. They are level with a decreasing benefit.	-Premiums are controlled by the person(s) insured. Level or increasing with a level benefit.
8.
-Insurance is available to person(s) up to age 60-65 only.	-Insurance is available to person(s) up to age 80.
9.
-Insurance is in force until age 70 only. Insurance is underwritten at the time of claim.	-Person(s) insured estblishes how long is in force up to age 100. Insurance is underwitten at the time of application, not at time of claim.