This CBC Marketplace segment explains how the banks push to get you to sign up for mortgage insurance with unclear questions that may leave you without the coverage that you thought you had. It cites examples of people who became ill or passed away and whose benefit claims were denied by the insurance company. With bank-sold mortgage insurance, the bank is the beneficiary of the insurance, not you or your loved ones. And the coverage declines as your mortgage balance declines. Most shockingly, the policy is not underwritten until the time of the claim, when the insurance company will look back into your medical history to see if you qualify for benefits.
Individual insurance explained by a licensed life insurance broker is your best insurance. With individual insurance you name the beneficiary, your coverage remains level, you own the policy, you can keep the insurance even if you move, and the premiums are usually lower. And the policy is underwritten at the time of application so that you know you are covered.
This shocking expose is worth watching…If you have mortgage insurance, you need to talk to us today.