Would you like insurance with that mortgage?

In my networking communities, I’m seeing a lot of people looking for homes right now. When you do find that special home and complete the mortgage documents, you will likely be asked if you would like life, disability, and critical illness insurance with the mortgage. You may feel that you have to say yes, but that is certainly not the case.

As an insurance advisor, I am certainly going to encourage you to purchase insurance coverage, if indicated by a needs analysis. However, I could spend some time talking to you about the reasons for getting a personal policy that is not connected to the mortgage. I don’t want to see your coverage decrease (unless we plan for that), as the coverage may be needed later for a new mortgage or other insurance needs. When you reapply later, even if you are changing mortgage companies, you might find you are no longer insurable for the new amount. You will likely have future insurance needs through to estate planning. A personal policy puts you in the driver’s seat. It can usually be renewed at the same coverage level, regardless of health, as well as being convertible to a permanent policy, should you desire.

CBC Marketplace did a story on mortgage insurance back in February. Please have a read of the page, including the differences between mortgage life insurance and traditional individual (personal) life insurance, and then watch the recorded episode. The focus should be on the product and the reasons for the concerns expressed. It is the nature of the product, not the major companies mentioned, that I hope to address. I look forward to hearing your comments! Oh, yes, I would be remiss if I didn’t mention that I would be pleased to help you with your insurance needs at any time.

Here is the link to the CBC Marketplace story, In Denial.

**This message is an expression of the author’s personal opinions. The companies represented by Antony (Tony) Ratcliffe of Ratcliffe Wealth & Risk Management, as an independent agent/broker in Alberta, Canada, will not be held liable in any way for the opinions expressed herein.