The Mortgage Insurance Smart Room
Welcome to the Gallery Wealth Management Smart Room we designed to help you better understand Mortgage Insurance. Whether you are an individual, a family, a business owner or farmer, there are important resources here for everyone. Find information here to help you understand your options for mortgage protection. Then call us and we'll help you cross the finish line.
Mortgage Insurance (Term Life vs Bank)
Before you say yes to mortgage insurance, consider a product designed to protect you and loved ones - not your lender.
Get more for your money with Term Insurance to cover your mortgage and other family protection needs.
When you get approved for a mortgage, your lender will offer to sell you mortgage insurance. That may seem convenient but before you say yes to mortgage insurance, you should know that you have other options. Protecting your mortgage with an individually- owned term insurance plan offers you and your loved ones better guarantees and greater choices, Quite simply, you get better value, more flexibility - and in most cases at a lower cost.
TERM LIFE INSURANCE
- Protects your Family
- Controlled by you
- Full portable - transferable to any hounse
- Flexible - upon death, your family has the option of paying off the mortgages or investing the funds.
- Choice of plans and benefits
- Choice of amount of coverage and the face amount does not decrease as the mortgage is reduced
- Coverage is convertible to permanent insurance
- Protected - the proceeds of the life insurance are sheltered from creditors
- Underwriting happens at time of application
- Expert advice - You deal with a professional insurance advisor about insurance and all coverage can be through one broker.
BANK/MORTGAGE INSURANCE
- Protects the bank
- Controlled by the bank
- Runs out when the house is sold or traded
- Inflexible - the mortgage must be paid off regardless of interest rates and other investment opportunities
- Limited choices
- Coverage must be equal to the mortgage amount and decreases as the mortgage is reduced (premium does not!)
- No conversion options
- No protection from creditors - the bank must be paid
- Underwriting happens after you die and your family is trying to make a claim
- You deal with a banker about insurance matters and the insurance coverage is spread all over
Family Term 101
Family Term insurance is Manulife’s low-cost option which helps meet the traditional protection needs of most individuals and families.
For example, Term insurance provides protection for things like:
- Income replacement
- Mortgage and debt coverage
- Coverage for funeral expenses
- Financial security for a family’s future
- Child Protection Rider
- Total Disability Waiver Rider
- Accidental Death and Dismemberment Rider
- Guaranteed Insurability Option Rider
- Parent Protection Rider
To learn more, click here.