By Alim Dhanji, Assante Financial Management
Insurance is an important part of one’s financial plan and it protects us from the unexpected. It also helps us sleep at night knowing that your loved ones are protected.
When deciding between insurance that a mortgage broker sells and one that you can buy through a trusted insurance advisor, you have to look at the differences as personal life insurance is a lot better and usually more inexpensive as insurance advisors have the ability to shop the market to find the best rates for coverage.
Some issues with mortgage life insurance include:
- Post Claim Underwriting, which means that you don’t know if you claim will be paid out until it has been submitted, with personal life insurance all the underwriting is done upfront.
- The beneficiary is the lender, with personal life insurance, you choose the beneficiary.
- The premiums stay the same as the mortgage balance is paid down, with personal life insurance the coverage doesn’t change.
- It’s non-transferable to a new lender.
Instead of taking the easy way out by going for mortgage life insurance, do your homework and get a solid insurance policy as it may save you from a lot of stress down the road. If you would like to speak to a Certified Financial Planner and licensed Insurance Broker, please contact Alim Dhanji at (604) 688-1919 ex.17.
Alim Dhanji is a Certified Financial Planner and has been helping people achieve their life goals including buying homes through written financial planning for over 10 years. Alim has been featured on CKNW, The Province, The National Post, Money Sense, The Metro, Investment Executive, Morningstar, and The Insurance Journal.