Understanding Mortgage Insurance

Before you say yes to Mortgage Insurance, consider a product designed to protect you and your loved ones - not the bank


Get more for your money with Term insurance.  When you’re approved for a mortgage, your lender will
offer to sell you mortgage insurance. That may seem convenient, but…
Before you say yes to mortgage insurance, you should know that you have other options.

Protecting your mortgage with an individually-owned term insurance plan offers you and your loved ones better
guarantees and greater choice. Quite simply, Term Insurance provides better value, more flexibility – and in most cases, a lower cost.

Take a look at the differences between protecting your mortgage using
Term insurance vs. Bank mortgage insurance: 

 

Bencom's Advice

Bank Insurance

I pay the premiums, so I would own the policy.  Right??

YES.  You own the policy and you name your beneficiaries

NO.  You're apart of a group plan owned by the bank.  Your bank is the beneficiary.

 


Is the coverage flexible?

YES.  You choose from different options and the amount of coverage you want, reguardless of the balance of your mortgage. 
You can increase or decrease your coverage, renew your coverage or convert to permanent protection. 
If you renegotiate or pay off your mortgage or sell your home, you can continue your coverage.

NO.  Your bank will insure you only for the amount of your mortgage.
You cannot alter, renew or convert the policy. 
If you choose to move your mortgage to another lender, you cannot transfer the policy. 
Your coverage ends when the mortgage is paid off or ends. 

Circumstances change.  If it's better for my beneficiaries to use the proceeds from the policy for something other than paying off the mortgage, will they have that option??

YES.  Upon death, the benefit goes directly to your beneficiaries.  They decide how to use the money.

NO.  Upon death, the benefit goes directly to your bank to pay off the balance of your mortgage.



Is the coverage guaranteed??

YES. Your premiums and benefits are guaranteed for the life of the policy.  Only you can cancel or make changes to
your policy.

NO. Your premiums and benefits are not guaranteed. The bank can change or cancel the policy at any time.

I look after my health, and I don’t smoke. Will that make a difference in the amount I pay for coverage?

YES. The amount you pay for your coverage is based on your age, health and smoking status.

NO. Since mortgage insurance is usually provided through a group plan, you pay the same rate for your coverage as everyone else.

Premium Payments

Monthly, Semi-Annually, Annually,- pre-authorized withdrawal or credit card

Added to your mortgage payment

 

 

 

Portability

Stays with you, no matter where you live or where you receive financing

Insurance may be cancelled if you refinance or move

Conversion Privilege

May be converted to permanent life insurance

No conversion option available

 

 


If you want to discuss your options please contact:
Bob Ritzer    Mark Beckham   Clinton Rayfield  Dan Treurniet