Creditor/ Mortgage Insurance Vancouver, BC
Is mortgage life insurance protecting your family or the bank?
Mortgage life insurance V/S Private life insurance
|
Mortgage life insurance |
Private life insurance |
|
| Premiums | Average 30% more |
Average 30% less |
| Death benefit |
Decreases with every payment |
Level throughout the term |
| Beneficiary | The lender |
Your family |
| Claims | Often denied |
99%+ claims paid |
Our expert insurance brokers at Camlife can help you look at all your options.
Creditor insurance is a terrible insurance product for many reasons. To name a few:
Cost: it is typically 30-40% more expensive than a private term life insurance policy.
Many claims are denied: Creditor actually underwritten at time of claim often leading to the lenders insurer finding a reason or technicality to deny the claim. In contrast, less than 1 in 500 private claims are denied (source Manulife).
The bank, if the coverage pays, is the beneficiary of the policy – not the family.
If you change banks you may have to re-qualify at the new financial institution – what if your health has changed and you can’t get coverage? Remember, life insurance is a privilege not a right.
The coverage is ‘decreasing term’. This means that every time you make a payment that the death benefit decreases but the premium does not.
Insurance Solutions we offer include: Life Insurance | Term Life Insurance | Creditor (Mortgage) Insurance | Life Insurance for New Immigrants | Non-medical Life Insurance | Manulife Vitality | Permanent Life Insurance | Term 100 - Permanent Life Insurance | Universal Life Insurance | Whole Life Insurance | Medical Underwriting | Living Benefits Insurance | Critical Illness Insurance | Disability Insurance | Life Insurance For Business Owners | Corporately Owned Life Insurance | Saving money on life insurance
Who needs life insurance?
Ask yourself this question: Would anyone you care about suffer financially in the event of your premature death? If you have dependant children, the answer is yes. If you have a spouse, the answer is probably.
Who does not need life insurance?
If you are single you probably do not need life insurance. Usually the death of a single/childless person does not leave anyone worse off financially. A single person with a mortgage may still NOT need life insurance as their family would still inherit equity in their property. Single people need to prioritize critical illness and disability insurance.
How much life insurance do I need?
The primary purpose of life insurance is to pay off debts (especially a mortgage) and replace income for dependants of the deceased. We do a needs analysis to determine how much money your family would need to maintain their standard of living in the event of your premature demise. A commonly used guideline for someone in their 30s is 20 times after-tax annual earnings.