Canadian Life Insurance Quote: Family Protection - Insuring Your Mortgage for Life or Disability
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When most people consider homeowners insurance, they usually think about insurance to protect against the loss of the home due to fire or storms. These policies, known as hazard policies, ar for some real tragedies that may happen to your home, but they do not cover one of the most likely: that you will not be able to pay your mortgage for reasons outside of your control, such as disability or death.
This kind of important insurance is known as mortgage life or mortgage disability insurance. Let's face it, the chance of the homeowner dying or becoming disabled is probably a great deal more than the chances of the house being destroyed in a fire.
Lenders will usually offer a mortgage life policy when you apply for a mortgage. But this kind of insurance is widely available, so do not feel limited to your lender's policy. There are a number of reasons you should consider your own insurance policy instead of the one offered by your bank.
If you take the bank's policy, you will not have the same array of choices that you will have if you shop around with individual insurance companies. A lender's policy is usually a predesigned policy and is issued for the amount of the mortgage. If you wanted anything different, this would not be offered to you.
If you would like to have a policy for greater than the amount of the mortgage, your bank will not offer this; they only cover the amount of the mortgage. You cannot alter the amount of the standard policy or make any other changes to it. In addition, you will not be able to customize the policy in any other way, for example by adding a waiver of premium to the policy for any period you cannot pay, or increase the amount of the policy.
This degree of control is one of the best reasons to shop for your own mortgage insurance policy. In this case, you can change the amount of the policy, or have stay remain the same. Most bank's policies are decreasing term. Since the lender is in control of the policy, he can cancel it if the mortgage is paid off or assumed or if the group policy terminates. When it is your own policy, you may make it portable and use it for future homes as well.
A group mortgage life insurance policy has no conversion feature, but individual policies are able to be converted, and cash values can accrue on individual policies.
And finally, you should consider the fact that lenders are not insurance experts, but rather lending experts. If you want to work with a professional who understands what kind of insurance your family needs in order to be fully protected, you will probably want to deal with a licensed insurance agent.
Article Source: Articlelogy.com
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