Mortgage insurance refers to a type of life insurance which protects your dependent survivors against paying back a loan or mortgage that you’ve signed for. It will pay back the remaining balance of your debt should you pass away prematurely (before paying off the mortgage).
It’s a misnomer that you can only procure Mortgage Insurance thru the lender. In fact, it may be to your detriment to do so.
Mortgage Insurance is often less expensive through a Broker, such as Blair Insurance, as we understand the product options and can shop the multiple offerings available in the marketplace for you.
Your own designed policy is a better option than a standard issue through a traditional financial institution. It offers more benefits, flexibility, control and guarantees. It caters to your specific needs and it can continue protecting you and your loved ones after your debt is paid, transitioning with you as your life evolves and needs change thru different life stages.
See the comparisons below:
|BLAIR INSURANCE||BANK/LENDING INSTITUTION|
|You own and control the policy||Bank/Lender owns the policy|
|Beneficiary is who you choose||Beneficiary is the bank/lender|
|Fully portable & transferable||Runs out when the house’s mortgage term is up|
|Flexible – Upon death, your family has the option of paying off the mortgage or using the funds in any way they see fit||Inflexible – The remaining mortgage debt must be paid off regardless of interest rates and other needs or opportunities|
|Advisor shops for best rates and terms||No shopping – 1 only|
|Choice of plans and benefits||Limited choice and set terms|
|Choice in amount of coverage – Amount does not decrease as the mortgage is reduced||Coverage must be equal to the mortgage amount – Decreases as the mortgage is reduced (but Premium stays the same for less coverage!)|
|Coverage amount is guaranteed||Coverage reduces each year|
|Coverage is convertible and renewable||Non-convertible|
|Stable – 30-day grace period for missed premiums||A missed mortgage payment often means lost coverage|
|Expert Advice – Guided by a knowledgeable advisor who tailors your policy for you||You deal with a banker about insurance matters – They are not experts in insurance.|
|Underwritten at time of application, thus coverage is fully guaranteed||Underwritten at time of death - no guarantees - coverage is determined then|
We can work with you to determine the right kind of coverage for you and your family, finding the best blend of coverage options and value for your money.
Contact one of our insurance specialists at Blair Insurance today to discuss your options and create a unique policy that’s right for you.