BEFORE You say ‘yes’ to MORTGAGE INSURANCE FROM A BANK….

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Know someone who is purchasing their first home...or whose mortgage is coming up for renewal? Before you say yes to the bank's "mortgage insurance" there are some things you need to be aware of. 
Please allow me to share what could be the "BETTER OPTION" and why...


REASON # 1 – COST
Why not consider term life insurance instead of mortgage insurance?  
TERM INSURANCE could cost up to 40% LESS per month for the first 20 years. For example: $250,000 of Life Insurance would cost $16.43/month (for a healthy, non-smoking 30 year old. 
MORTGAGE INSURANCE The same coverage from the bank (same client profile) is $27.88/month. Premiums remain the same - even as the mortgage decreases.


REASON #2 – BETTER PROTECTION
TERM INSURANCE: stays with you (and renews automatically every 20 years) as long as premiums are paid...not matter how many moves or mortgages you go through.
MORTGAGE INSURANCE: DID YOU KNOW…Proceeds from mortgage life insurance CAN ONLY BE USED to pay off your mortgage?  Oh...and coverage terminates when the mortgage is paid off or the house is sold.


REASON #3 – DEPENDABILITY
TERM INSURANCE: Your policy is FULLY UNDERWRITTEN at time of application. Once approved, no further underwriting is required!
MORTGAGE INSURANCE: Your policy is NOT FULLY UNDERWRITTEN UNTIL AFTER A CLAIM IS MADE! This means you could be declared UN-INSURABLE after you die and DENIED COVERAGE even though you paid your insurance premiums.


REASON #4  COVERAGE AMOUNT
TERM INSURANCE: You decide how much coverage you want and, once approved, the policy takes effect. Coverage DOES NOT DECREASE while policy is in force. Should the unexpected happen, YOUR BENEFICIARIES will receive the FULL COVERAGE AMOUNT.
MORTGAGE INSURANCE: You can't decide the amount...the mortgage insurance coverage MUST EQUAL the amount of your mortgage. This means as the AMOUNT OF YOUR MORTGAGE DECREASES, SO DOES THE INSURANCE COVERAGE...but the premiums REMAIN THE SAME.


REASON #5  BENEFICIARIES
TERM INSURANCE
: If the unexpected happens, the BENEFICIARIES NAMED WILL RECEIVED TE DEATH BENEFIT. They choose how to use the money and have the option to pay off high-interest loans should the mortgage rate be lower.
MORTGAGE INSURANCE: The BANK IS THE BENEFICIARY. If the unexpected happens, the payout from the mortgage life insurance GOES TO THE BANK TO PAY OFF THE MORTGAGE.