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Slava · 06-13-2007, 01:31 PM

I am a fully accredited insurance advisor. There are a number of reasons to not buy the lenders coverage:

1. The coverage is decreasing, but based on the amount of the initial mortgage (in other words you pay the same premium, but as your mortgage decreases you don't get any extra benefit)

2. The coverage really protects the lender: If you were to pass on the lender has the mortgage paid out even though you've been paying the premiums....with a stand-alone policy your beneficiary gets the cheque, tax-free, and can do what they want. People don't always want to pay off the mortgage.

3. Once you have a stand-alone policy you can move and not have to re-apply. This is important because you could have health issues in the interim which will increase your rates, or deny coverage for you outright.

4. In the same vein, you have coverage no matter what the term of the mortgage is and you don't need to re-apply. As you age the premiums stay level and are based on your age today. A huge advantage if you renew your mortgage insurance 4-5 times over the course of your amortization.

I hope that this helps! I sent a PM as well. If anyone has any questions or would like information regarding any insurance (not auto or property) I would be happy to help. I can give you information on Critical Illness, Disability and Life insurance. Both from a personal and corporate point of view.

06-13-2007, 01:31 PM	#12
Slava Franchise Player Join Date: Dec 2006 Location: Calgary, Alberta Exp:	I am a fully accredited insurance advisor. There are a number of reasons to not buy the lenders coverage: 1. The coverage is decreasing, but based on the amount of the initial mortgage (in other words you pay the same premium, but as your mortgage decreases you don't get any extra benefit) 2. The coverage really protects the lender: If you were to pass on the lender has the mortgage paid out even though you've been paying the premiums....with a stand-alone policy your beneficiary gets the cheque, tax-free, and can do what they want. People don't always want to pay off the mortgage. 3. Once you have a stand-alone policy you can move and not have to re-apply. This is important because you could have health issues in the interim which will increase your rates, or deny coverage for you outright. 4. In the same vein, you have coverage no matter what the term of the mortgage is and you don't need to re-apply. As you age the premiums stay level and are based on your age today. A huge advantage if you renew your mortgage insurance 4-5 times over the course of your amortization. I hope that this helps! I sent a PM as well. If anyone has any questions or would like information regarding any insurance (not auto or property) I would be happy to help. I can give you information on Critical Illness, Disability and Life insurance. Both from a personal and corporate point of view.