Siobhan Harlow

Harlow Financial

Mortgage, Life and Critical Illness Insurance Specialist

MORTGAGE INSURANCE
If I have a mortgage, I need mortgage insurance, don't I?
If you’re preparing to buy a house or reviewing your current financial plan, this question is likely to be one of many. The information below outlines your options.
What would you say if your financial representative or institution offered you term insurance under the following conditions:
•    If anything happens to you, the death benefit will be payable only to your mortgage company, not your family.
•    Your coverage will decrease steadily over time.
•    You can only have the coverage amount you specified rather than one you choose after analyzing your needs.
•    You can't convert your term insurance to a permanent product in the event your health changes.
•    The renewal rates aren't guaranteed.
•    If you decide to deal with a different financial institution, your life insurance coverage will cease.
•    It decreases as you pay your mortgage off.
•    It is non-convertible, since insuring you for life and securing the mortgage loan have nothing to do with one another.

Would you be interested in a product (hat was this rigid and customer-unfriendly? Not likely, but you should know that all of the above conditions are true with most bank mortgage insurance.

Facts on mortgage life insurance

Mortgage life insurance is payable to the lending institution - it is designed to protect the institution s investment in case something happens to the mortgagor. This basic fact is reflected in various aspects of the insurance product the lending institution will typically offer. Here are some of the most important aspects to consider with most mortgage life insurance coverage:
•    if anything happens to you, the death benefit we be paying to your beneficiary not the mortgage company
•    your premium will never change if you lock it in
•    you can convert your term insurance to a permanent insurance
•    regardless of your mortgage balance your coverage will remain the same and can potentially grow
•    return of premiums paid is available with selected insurance companies

Siobhan Harlow  CSA
Harlow Financial
604-309-9128
www.harlowfinancial.com
s.harlow@harlowfinancial.com