It seems like a simple fix to a common concern. You're signing your mortgage papers and you run into a routine question. "Would you like mortgage insurance with that?" You're given a brief rundown of what it is, and of course it's convenient because you're already there... so why not kill two birds with one stone?
Upon acceptance of the product, a couple quick questions on an application, and a signature...Boom!, your debt is now protected and your family is secure!
Unfortunately though, not all insurance is created equal and in most cases you're missing out on a better overall fix for your situation.
The majority of us do not have the means to "self-insure" due to cash flow and limited savings, so instead we turn to products on the market for help in covering off these various risks for our families. We turn to insuranceproducts because we don't want to leave our families in a lurch when we pass, especially if we pass before our expected 'expiry date' (also known as life expectancy). Outside of debt and income protection in the event of death, insurance is also used fo r; covering off loss of income due to illness and injury while still living, a great alternative way for saving outside of your more commonly known market based products (Stocks, QIC's, Mutual funds, etc.), aswell asfor estate planning, and leaving behind alegacy.
For this discussion, we w ill just be comparing two products; T erm Life Insurance and Bank Mortgage Insurance.
Term life insurance is an inexpensive way to cover off the "what ifs" and it fits nicely into a financial plan no matter where the risks are that might need to be coveredoff.
Bank mortgage insurance is a product that is used to cover off the debt owing on your home upon your death, in order to leave your family mortgage free.
Please seethe chart below that outlines some of the differences between the two products.
I have also provided my contact information, in the event that you would like to reach out to further discuss your personal situation w ith me.
Jenn Styslo, Insurance/Wealth Consultant
Blue Lotus Wealth Management—"Blue Lotus Wealth Management is an insurance brokerage specializing in personalized wealth and insurance planning, client relationship, and education," E: firstname.lastname@example.org