The TK Advisor -TK Financial Group Ottawa Blog about Life Insurance, Critical Illness Insurance, Wealth Management and Estate Planning

Insurance bought from a banking institution to cover mortgage !

Have you bought mortgage life insurance at the bank at twice the premium on the open market ? Would it be better to have personal policy not tied into only paying off mortgage ? Do you like paying high premiums for decreasing mortgage coverage when you can pay less for level coverage ? A new client of mine found out by accident that the bank put him into a mortgage life policy and yes there were no medical questions even asked from him or his wife . If you own mortgage insurance with the bank are you sure you qualified and are you comfortable having to be closely looked at at death to see if you qualified to get coverage ?

Please  consider completing an insurance audit and sleep peacefully knowing nothing has been left to chance .

Life Insurance Premiums can be expensive and do you really have coverage at the bank ?

While delivering a critical illness policy to a client yesterday he said that his bank had requested he purchase a 500 k life policy to cover his line of credit . The banker suggested he talk to someone about acquire the term insurance outside what was offered through the bank . When we calculated the bank premium it was 220 per month and one of our 12 insurers we represent can issue better guaranteed level coverage for 92 dollars per month . I am certain majority of people never check the rates and blindly sign up . Also , if you were one of those people who did buy insurance from the bank were you asked medical questions or did person filling your form just have you sign paper ? Your beneficiaries do not want to fight insurers for non disclosure after you died so be careful that you answered the questions and that was recorded . We are currently working with all our insurers to secure a life policy for a lady that has a health condition and we will be fortunate to secure a policy which will be heavily rated . The same lady was signed up for a life policy which she got through the bank and when I inquired with her husband about the process at bank no medical questions were asked . Just because a person looks healthy does not mean they do not heave a health condition !

Mortgage life Insurance premium is very expensive at the bank , double the cost !

Can you afford to be paying extra premiums for inferior life insurance with the bank . We completed an insurance audit for a business client last week who had 720 k of life coverage with one of the insurers through his bank at 82 dollars a month . Bank mortgage life insurance premiums remain the same while the level of protection decreases with decreasing mortgage . Personal life policy say 10 Year Renewable and Convertible policy coverage remains level throughout the term . Bank life coverage is not transferable to new mortgage for another property . At the bank the mortgage gets paid off while individual policy the beneficiary gets the proceeds on death which allows them to chose what they wish to do . Personally owned life policy allows you to be flexible with estate planning throughout the lifetime as you may wish to hold your insurance for longer term then your mortgage . Also , this individual I am working with WAS paying 82 dollars a month with his bank  for insurance coverage while level non decreasing coverage, guaranteed renewable as well as convertible coverage  he will be paying 40 dollars from one of our 12 insurers .