| Bank insurance is better than no insurance, however it has it's limitations when compared to individual insurance. | ||
| Questions you should ask before obtaining mortgage insurance….. | ||
| Individual Insurance |
Mortgage Lender |
|
| Can I choose my own beneficiary for the insurance proceeds? |
Yes
|
No
|
| Because the mortgage lender is the policy owner, they automatically become the beneficiary of all proceeds. | ||
| Will my coverage remain level throughout the mortgage period? |
Yes
|
No
|
| The amount of coverage available through a mortgage lender is limited to the outstanding mortgage balance. This coverage amount decreases with each mortgage payment made, but your cost will remain the same. | ||
| Are my premiums fully guaranteed in the contract? |
Yes
|
No
|
| Premiums paid through a mortgage lender are on a group basis and therefore can be increased on a group basis if the experience of that group becomes unfavorable. Also a group policy can be terminated. | ||
| Does my coverage stay in force if I move or change mortgage lenders? |
Yes
|
No
|
| Can I convert my coverage to a permanent plan, even if my health has changed? |
Yes
|
No
|
| There are no conversion privileges with your bank's mortgage insurance. | ||
| Can I apply for more coverage for other needs? |
Yes
|
No
|
| With your mortgage lender you can only apply for an amount equal to the initial mortgage. | ||
| Can my coverage extend past my mortgage period? |
Yes
|
No
|
| Since mortgage lenders only offer coverage to protect the outstanding mortgage balance, once your mortgage is paid off, regardless of time, your insurance coverage will cease. | ||
| Could I pay less if I am in good health and don't smoke? |
Yes
|
No
|
| Most mortgage insurance available through banks consider only the age of the borrower to determine the cost of insurance. There is no preferred pricing for better health risks. | ||
In addition to the above-mentioned benefits of an
individual insurance contract, I would be pleased to provide you with a very
cost competitive quote.Contact:Debby McAfee
Insurance and Investment Advisor |
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