by Glenn Cooke
Seniors have two ways to life insurance their mortgage. The first is bank mortgage life insurance, which is a subset of creditor protection insurance. The second choice is individual term life insurance through an independent broker such as The Term Guy, here at mortgageinsurance.ca.
Consumer advocates agree – you should always choose term life insurance over bank mortgage life insurance. There’s a variety of reasons why.
First, price. Bank mortgage life insurance is substantially more expensive compared to a term life insurance policy. You’ll save a bunch of money every month by switching your bank mortgage life insurance over to a term life insurance policy.
Secondly, is product features. Bank mortgage life insurance is a substandard life insurance product compared to term life insurance. Here’s some of the policy differences between the two types of mortgage life insurance coverage:
All of these benefits are important, but in particular the Renewable and Convertible benefits available on term life insurance policies become every more important as seniors get older and become more at risk to developing a health factor that makes them uninsurable. With Renewable and Convertible term life insurance, seniors can either continue their existing life insurance for life, or convert it to lifetime coverage with level premiums, no matter how uninsurable you’ve become. With bank mortgage life insurance, without these options, if you become uninsurable and you change your mortgage – you will be out of life insurance (since you’ll be seeking new mortgage life insurance at the bank, but won’t be able to qualify).
If you’re a senior and have questions about your mortgage life insurance or would like personal assistance, please call (866) 779-1499 and we’ll be happy to speak with you.
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