Don't leave yourself uncovered or leave your loved ones behind with a burden of debt.Whether you have bank or creditor insurance or don't have any mortgage insurance at all, you need to get educated on why you should have mortgage insurance and what your options are.
Why should you have Mortgage Insurance for Life, Disability, and Critical Illness?
You need to ask yourself these three questions:
- If you were to lose your job, or become disabled - how would you make your mortgage and other debt payments?
- If you were diagnosed with a critical illness - how would you make your mortgage or debt payments?
- If you were to die - who would you leave behind with this burden of debt?
- If you or your spouse/partner were to die - will you need to sell your house? Is it the right time to sell?
Yes, these can be tough questions to ask, but are necessary. The main objective is to either cover payments and/or pay off the entire mortgage or debt.
How much money would I need to take care of my mortgage and where would the money come from?
The money can come from a few places such as:
- savings accounts
- retirement savings such as RRSP's
- borrowing more money from other banks, or your family and friends
- selling your home or other personal assets
- have a fully guaranteed Life, Disability, and Critical Illness Insurance protection plan in place for a low monthly cost.
At Bridge Wealth Group, our goal is to help you fully understand what your requirements would be. We explain how the different programs work and the associated costs for insurance to cover your mortgage. This is done through our Insurance Needs Analysis. Once the needs analysis is completed we can show you a variety of mortgage insurance options. We can find a flexible plan that will fit your budget for both the short and the long term. Have a look at the Insurance Needs Analysis and determine how much coverage you really do need.
What is the difference between bank/creditor mortgage insurance and a mortgage insurance plan with Bridge Wealth Group?
Bridge Mortgage Insurance:
Will the mortgage insurance be completed by a licensed insurance advisor?
Through Bridge Wealth Group our application is done by a fully licensed mortgage insurance agent. In Canada, we must be licensed by each province in which we do business. With bank or lenders' mortgage insurance, the people helping you put this insurance in place are typically not licensed life insurance agents. They are usually the person helping you with a mortgage.
Can I insure any amount or only the amount of the mortgage?
We can help you insure any amount. For example, if you want to have life insurance in place to cover other areas like funeral and final protection, loss of income, other debt coverage, or children's education, we can add this amount over and above the mortgage amount. Often, it makes sense to combine your insurance coverage into one complete insurance policy. With mortgage insurance through the banks or lenders, you will only be covered for the mortgage amount. Determine how much coverage you need by going through an insurance needs analysis.
Will the insurance coverage change?
There are many types of insurance and they can be combined as part of an overall plan. With our mortgage insurance the benefit will remain the same. This means that as you are paying down the mortgage the death benefit will still be the same. With banks or lenders' mortgage insurance, the coverage will decrease as the mortgage gets paid down and usually the premium you pay will still remain the same.
Are the premium and death benefits guaranteed?
The premium and benefits are guaranteed once the Bridge Mortgage Insurance contract is put into place. Lenders' insurance premiums and benefits are not guaranteed and the lender can cancel or change the policy at any point in time. With typical mortgage insurance through banks the death benefit decreases as the mortgage is paid down.
Who is the beneficiary should something happen to me?
The death benefit is a tax free benefit and goes directly to your beneficiary. It can be used to pay off a mortgage or do whatever they choose with the monies. Don't forget that if your mortgage is paid off right away there may not be any money left to pay for other debts. The beneficiary may have to go back to work immediately, leaving no time to deal with the loss of a loved one. Also, if the interest rate on the mortgage is low, it might make more sense to not pay off the mortgage. Either way, with Bridge Protection, you chose the beneficiary and they will have the choice of what to do with the monies.
With lenders' mortgage insurance the beneficiary is the lender and not you. If you were to pass away the death benefit goes directly to the lender to pay off the mortgage. This is assuming that it does get paid.
What happens if I decide to change lenders for my mortgage?
If you decide you want to change lenders for your mortgage, you won’t need to do anything with protection from Bridge Wealth Group Insurance. If you have typical lender mortgage insurance you would have to reapply with the new lender’s insurance program. This may cause some difficulty in the future, as you would be older (prices increase as we get older); and you could develop medical conditions which may be deemed not insurable, leaving you with no coverage.
Can I change the benefit coverage?
With a mortgage insurance contract through Bridge Wealth Group, you can cancel, change benefit coverage, or change to different types of insurance along the way giving you the most flexibility as your life changes. Lender mortgage insurance has no flexibility.
Is mortgage insurance fully underwritten?
Your policy would be a guaranteed contract that is medically underwritten at the time of application, leaving you with confidence that your policy is solid and will be there when needed. With lender mortgage insurance programs they are most often a certificate of insurance and not a contract and are medically underwritten at the time of a claim. This could possibly leave you with no insurance at all, but you wouldn’t know that until something happens, which would be too late.
Don’t go without proper protection. Bridge Wealth Group is here to guide you along the way and help you create the most advantageous Mortgage Insurance Protection Plan that will be there to protect you and your family and not the bank. Even if you already have some insurance in place, just contact us to get a full insurance review at no cost to you. Contact Bridge today or reach out to us and let one of our dedicated advisors help.