What’s Wrong With Most Mortgage Insurance Sold By The Banks
Do you like saving money? One thing we’ve observed about people is that regardless of how much a person makes, every one of us likes to save money. Furthermore, we love to get more value out of something for the same price. We love saving our clients money and providing greater value than they received before. One way we do this is by reviewing our clients’ insurance expenses.
One example of this is reviewing bank sold mortgage insurance. You’re probably wondering, ‘What’s wrong with most mortgage insurance sold by the banks?’ Well, by replacing bank sold policies with term insurance, we have saved our clients 25% – 40% on these insurance expenses. In one case, we saved them 66%! The beautiful thing about these sizable savings is that it enables the client to pay off their mortgage faster by allocating the savings to the mortgage payment. And who doesn’t want to pay off their mortgage faster?
One example of this is reviewing bank sold mortgage insurance. You’re probably wondering, ‘What’s wrong with most mortgage insurance sold by the banks?’ Well, by replacing bank sold policies with term insurance, we have saved our clients 25% – 40% on these insurance expenses. In one case, we saved them 66%! The beautiful thing about these sizable savings is that it enables the client to pay off their mortgage faster by allocating the savings to the mortgage payment. And who doesn’t want to pay off their mortgage faster?
But it’s not just the savings that are important. By replacing these policies which are designed to favour the banks, we provide better coverage that favours our clients.
Here are six ways that our coverage is superior to most banks:
So we save our clients money and we add value by improving coverage quality. Yes, we’re smiling from ear to ear while we write this because we truly love making a difference to our clients. Please call us if you want to save money on your insurance expenses.
Here are six ways that our coverage is superior to most banks:
- Our insurance doesn’t use “Post Claim Underwriting” which means you can be certain that you are covered from day one (see video below).
- You are the owner of the contract and can designate the beneficiary of your choice (Bank policies have the bank as the beneficiary so the client is paying to protect the bank’s risk).
- Your beneficiary has control and flexibility in how they use the funds (they don’t have to pay off the mortgage and can use the funds to address their specific needs such as final expenses, education or a leave of absence).
- The policy value doesn’t decline with the value of the mortgage (leaving you with the full amount of insurance you started with).
- Your policy remains valid if you move your mortgage giving you the freedom to change lenders (go ahead, get a better rate elsewhere).
- The rates are locked in for the set term instead of going up as you get older. (How does an increasing premium on a declining benefit make sense anyway?)
So we save our clients money and we add value by improving coverage quality. Yes, we’re smiling from ear to ear while we write this because we truly love making a difference to our clients. Please call us if you want to save money on your insurance expenses.
CBC Marketplace did a special on Mortgage Insurance and the pitfalls of buying mortgage insurance from a bank instead of a broker. We highly advise checking it out below.
