SMART Finances: Getting Life Insurance for Your Mortgage
Whether you’re buying your first home or renewing an existing mortgage, you have probably considered getting mortgage insurance. But don’t sign the insurance policy offered by your lender just yet; it may not be the best choice for you. Looking into your options could save you some cash and provide you with better insurance.
Mortgage Life Insurance: It sounds simple, and it is…
If you pass away, a mortgage life insurance policy gives money to your bank to pay off the remaining balance on your mortgage. Very simple.
Renewable Term Life Insurance: Better options, more choices…
Term life insurance is what people typically regard as standard, plain old life insurance. If you pass away, a term life insurance policy pays the amount of money that you choose to the person(s) you designate. The obvious difference is choice. You may have other debts that you want paid off or want to leave some money behind for the people you love. Perhaps someone relies on your income and will require a replacement for that income. These are only some of the choices you can make with Term Life Insurance.
Making the best choice…doesn’t mean buying the most expensive product
In most cases, the cost of Term Life Insurance is comparable or even lower than Mortgage Life Insurance. If someone gives you an insurance quote that is much higher than basic Mortgage Life Insurance, find out why. It may be for too much coverage or for a more complicated type of insurance, such as a Universal Policy. A good insurance agent will ensure that you understand exactly what you are buying.
What if you get sick or can’t be insured…and you’re going to live
Chances are, your mortgage (and your Mortgage Insurance) will need to be renewed within 5 years. If you get sick, you might not re-qualify for insurance at the time of your mortgage renewal – even if you are cured. A Term Policy that is guaranteed renewable is the better option for cases like this. Even if you get sick and no one will give you insurance, you can extend guaranteed renewable insurance or make it permanent. But don’t just take my word for it; read The Wealthy Barber by David Chilton for his view on the type of insurance that is best for most people…that’s right…RenewableTerm Insurance…not Mortgage Life Insurance.
There’s more to life than life insurance!
When someone is helping you choose life insurance, they should also consider your other needs and priorities. After all, there’s no point spending all your money on insurance. You want to live, have a home, save for retirement and have a few vacations worth remembering. A good financial planner can help you make the best choices and many (myself included) have their insurance licence. So take a moment before you sign your name to an insurance policy. Be Smart. Call an expert and get what’s best for you.
Jennifer Maier, CFP
Certified Financial Planner
http://www.jennifermaier.com/
jmaier@perlerfinancial.com
(604) 468-0888
*S.M.A.R.T.= Success, Meaning and Results Tips
Mortgage Life Insurance: It sounds simple, and it is…
If you pass away, a mortgage life insurance policy gives money to your bank to pay off the remaining balance on your mortgage. Very simple.
Renewable Term Life Insurance: Better options, more choices…
Term life insurance is what people typically regard as standard, plain old life insurance. If you pass away, a term life insurance policy pays the amount of money that you choose to the person(s) you designate. The obvious difference is choice. You may have other debts that you want paid off or want to leave some money behind for the people you love. Perhaps someone relies on your income and will require a replacement for that income. These are only some of the choices you can make with Term Life Insurance.
Making the best choice…doesn’t mean buying the most expensive product
In most cases, the cost of Term Life Insurance is comparable or even lower than Mortgage Life Insurance. If someone gives you an insurance quote that is much higher than basic Mortgage Life Insurance, find out why. It may be for too much coverage or for a more complicated type of insurance, such as a Universal Policy. A good insurance agent will ensure that you understand exactly what you are buying.
What if you get sick or can’t be insured…and you’re going to live
Chances are, your mortgage (and your Mortgage Insurance) will need to be renewed within 5 years. If you get sick, you might not re-qualify for insurance at the time of your mortgage renewal – even if you are cured. A Term Policy that is guaranteed renewable is the better option for cases like this. Even if you get sick and no one will give you insurance, you can extend guaranteed renewable insurance or make it permanent. But don’t just take my word for it; read The Wealthy Barber by David Chilton for his view on the type of insurance that is best for most people…that’s right…RenewableTerm Insurance…not Mortgage Life Insurance.
There’s more to life than life insurance!
When someone is helping you choose life insurance, they should also consider your other needs and priorities. After all, there’s no point spending all your money on insurance. You want to live, have a home, save for retirement and have a few vacations worth remembering. A good financial planner can help you make the best choices and many (myself included) have their insurance licence. So take a moment before you sign your name to an insurance policy. Be Smart. Call an expert and get what’s best for you.
Jennifer Maier, CFP
Certified Financial Planner
http://www.jennifermaier.com/
jmaier@perlerfinancial.com
(604) 468-0888
*S.M.A.R.T.= Success, Meaning and Results Tips
posted by Jennifer Maier at
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