Life Insuring Your Mortgage
|
|
WITH
A BANK, CREDIT UNION TRUST
CO. |
|
WITH
JELCO FINANCIAL PLANNING |
1 |
The
group policy can be cancelled by the bank or issuer at any time. |
1 |
An
individual policy can only be cancelled by you. |
2 |
Group
coverage will terminate upon the happening of any of the following
events:
a) the mortgage loan is
repaid
b) the mortgage is
assumed
c) the house is sold
d) the mortgage is in
default
e) the insured person
ceases to occupy the house(i.e. if you rent your home)
f) the group policy
terminates |
2 |
Your
individual policy may be continued as long as you wish. It is a portable
plan that can be used to cover any mortgage anywhere.(Statistics Canada
report the average Canadian family moves once every 5 years) |
3 |
Group
plans are not portable! Illustration: you take your mortgage to another
bank - you lose the mortgage insurance at the existing bank.
a) you must then be able
to qualify for new coverage.
b) You are subject to
rates at the time with a new mortgagor. |
3 |
Your
policy is portable. This prevents the danger of you ever losing the
protection because your health has changed. It protects your right of
ownership--your insurability. |
4 |
Group
mortgage insurance is not convertible! |
4 |
An
individual term policy may be converted regardless of health, usually until
age 65 |
5 |
The
group coverage is always decreasing term insurance declining as the
mortgage declines. |
5 |
You may
purchase any kind of insurance. Either permanent or term insurance;
decreasing or level. |
6 |
The
face amount of your policy can only be for the exact amount of your
mortgage (no more, no less) |
6 |
You may
purchase any amount of coverage you require. |
7 |
You are
covered under a group policy owned by the bank. |
7 |
You
purchase an individual personal policy owned by you. |
8 |
Group
mortgage insurance does not allow you to make beneficiary designations or
to select settlement options. In the event of death the bank is repaid
automatically. Illustration: If you wish to invest the cash, rather than
pay off a low interest mortgage you have no choice, your bank gets the
cash. Privately owned, the choice is yours. Pay it off or invest the cash. |
8 |
An
individual personal policy allows the owner to make beneficiary
designations. The owner or beneficiary may select any one of several
settlement options. In the event of death your beneficiary will receive the
proceeds from your policy. Your beneficiary can have the choice of repaying
the mortgage or not, thus preventing a hasty decision. **proceeds are
protected from creditors. |
9 |
Because
the bank owns the policy you have NO CONTROL over the policy. |
9 |
Because
you own the policy you have complete control over it. |
10 |
Group
coverage whereby both husband and wife are covered only pays on the death
of one of the insureds NOT BOTH. The coverage on the survivor terminates.
It cannot be continued! |
10 |
An
individual policy covering both husband and wife can insure each of them
for the same amount. The proceeds will be paid on the death of either one.
Should both husband and wife die, the proceeds are paid twice! Also, the
coverage on the survivor may be continued to protect family needs. It may
be very important to the new breadwinner. |
11 |
The
features and provisions of the group policy are the same for everyone
insured under it. Only the face amount will vary. |
11 |
With a
personal individual policy you may select the type of plan you wish, the
features and provisions you require. The choice is yours! |
12 |
No
other benefits or features may be added to your group policy NOTE: The
point is, that if you do have bank type coverage you have the deficiencies
and problems shown by this comparison! If you don't have coverage at all
consider the advantages. |
12 |
There
are a number of features and provisions which you may add to your policy.
You may wish to add a waiver of premium if you were disabled. Or add a
disability provision which would replace part of your income should you
become disabled. Another option would give you the right to increase your
protection, regardless of your health. |
13 |
When
you insure through the group policy offered by the bank you are not given
the benefit of professional insurance counseling. Your loans officer is not
a licensed life insurance agent. They may or may not be well informed on
the various types of coverage available. |
13 |
You are
buying from a licensed professional that can help you in making your
decision and explain and offer you a great choice of plans. His or her
service in the years to come can be invaluable. |
14 |
The
Ontario government has applied a tax of 8% to the mortgage insurance
premium. |
14 |
There
are no taxes on your life insurance premium. |
15 |
With
the bank you are renting the insurance coverage. |
15 |
With
Jelco Insurance you can own the insurance coverage. |
