More often than not, a bank will offer you a mortgage life policy when you take out a loan to pay for your new house. The mortgage life policy might seem a good deal at first. Yet what many people realize is that life insurance obtained from mortgage lenders is very different from those you can personally get from life insurance companies. After some research, you can find out that a mortgage life policy actually costs more.
There are other differences between a mortgage life policy and the life insurance you can get from an agent. First of all, banks offer a group insurance which charges different people (e.g. obese and normal weight) the same premium. This is unlike the other type which bases it on one’s individual health. With this process, it might be best for an obese individual to get a mortgage life policy.
Second, an individual life insurance policy can last as long as the policy-holder wants, unlike with a mortgage life policy. Banks have a specific cut-off date, usually when the mortgage is fully paid.
Mortgage Life Policy Video
A mortgage life policy is also less portable. This means that policy-holders will have to apply for another life insurance if they change banks. This could lead to an increase in cost, especially if the policy-holder has contracted a serious disease.
Another problem with a mortgage life policy is that you would have to pay a fixed amount even as the coverage is reduced. With an individual policy, the amount of the coverage shall stay the same.
Lastly and most importantly, an individual policy will allow you to choose your own beneficiaries. This means that your loved ones will be able to choose how to use the money they receive from the life insurance. However, with a mortgage life policy, the bank will obtain the proceeds.
In the end, it’s always best to shop around for the best life insurance quotes, especially when faced with the choice of getting a mortgage life policy. Fortunately, you can find online insurance quotes in websites like The Hughes Trustco Group. The service can give you life insurance quotes as long as you fill out a short insurance form that will detail your needs and situation. After filling it out, it will give you the most affordable life insurance quotes for your situation with one of the top life insurance companies in Canada.
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The Hughes Trustco Group Ltd, life insurance brokers in business since 1972.
Get a Free List of Mortgage Life Policy Quotes
To obtain a mortgage life policy complete our mortgage life policy form and we'll provide a list of mortgage insurance quotes from all the companies in Canada.
More often than not, a bank will offer you a mortgage life policy when you take out a loan to pay for your new house. The mortgage life policy might seem a good deal at first. Yet what many people realize is that life insurance obtained from mortgage lenders is very different from those you can personally get from life insurance companies. After some research, you can find out that a mortgage life policy actually costs more.
