Mortgage Life Insurance

Provided through WCS Financial Services/BridgeForce Financial Group, one of the largest Canadian owned and operated Managing General Agency.

Buying a house is a major investment and since we don’t have that kind of money stuffed in our mattresses, it means borrowing from a financial lending institution (typically a bank). And to protect your family from the financial burden to pay for this house should you die, you buy mortgage life insurance. And since you’re already at the bank borrowing the money to buy the house, you buy your mortgage life insurance there as well.

But here’s a little known fact that can have a big impact on the mortgage life insurance policy – buying from an insurance company is a great alternative to lending institutions. The following chart compares the features of mortgage insurance from an insurance company and a non-insurance source.

 

Life Insuring Your Mortgage

 

With a Bank, Credit Union, Trust Company With a Life Insurance Company
You are covered by a group policy owned by the bank. You purchase an individual policy that you own.
Because the bank owns the policy, you have no control over the policy and it may be cancelled at any time. Also, the bank is the beneficiary – you have no choice. With a personal policy, you may select the type of plan you want and the features and provisions you need. The beneficiary can be anyone you want.
The face amount of your policy can only be for the exact amount of your mortgage. The face amount can be any amount you choose.
The coverage is always decreasing term insurance, declining with the mortgage. You can purchase any kind of insurance, either permanent or term – you decide.
Group coverage will terminate upon the occurrence of any of the following:

  • The mortgage is repaid
  • The mortgage is assumed (i.e. house is sold)
  • The insured person ceases to occupy the house (i.e. the house is rented)
  • The mortgage is in default
  • The group policy terminates
Your individual policy may be continued as long as you want. If you want to pay the mortgage off, you can. If you decide not to, it is under your control. If you sell your house and buy another, you don’t need to requalify for the insurance.
There are no cash values in the group policy, thus there are no borrowing privileges. With our popular plans, there can be a growing cash value which can be used to make the occasional mortgage payment, or used any way you want.
There is no cash value to help pay the mortgage off sooner. You can use the cash values to pay the mortgage off, thereby saving you money in mortgage payments.
To the bank, you are just a number; personalized service is rare. To us, you are an individual person deserving of our respect and service.
It is not convertible if your health changes. The mortgage insurance can be converted to permanent insurance.
You cannot add benefits to the coverage. You can add benefits to the coverage.
The mortgage insurance terminates when you move. Moving has no effect on your mortgage insurance.
Your mortgage insurance ends at age 65. You can keep this policy for as long as you want.

 

Contact Jacqui McFarlane today and see about switching to a mortgage life insurance policy from a life insurance company.