Mortgage Insurance - Banks vs Financial Advisor

The banks make it seem like the client MUST take the insurance out at the bank. When in fact, they don't have to at all. It is not a requirement to get a mortgage. However if you want your loved ones protected in the event of your death (and guess what, you are going to die someday, we just don't know when), then you absolutely need mortgage insurance, which is essentially life insurance.

So what happens at the bank --

· Your premiums will remain the same price, but your coverage will decline as you pay off your mortgage

· When you die, your beneficiary does not receive the insurance to decide how to pay off all the debt, the bank gets the insurance money to pay off the mortgage only. Your family doesn't see a dime of the insurance.

· If you change banks where your mortgage is at, your mortgage insurance will also be cancelled, and then you will have to reapply at higher rates

· When you die, the bank will then determine if they should have sold it to you in the first place, and in some cases it has been declined. If you are a detailed person, you would have read the small print on the mortgage insurance application. One of the questions is "Have you ever had a cancer exam, if yes, you will be declined the insurance". Guess what, if you have had a breast exam, a pap smear, or a prostate check by your doctor...you have had a cancer exam.

· Banks are not licensed to sell insurance. They buy it in bulk and then sell off each of the policies. Would you deal with a doctor that didn't have a valid license? Then why deal with an unlicensed person at a bank who is handling the second most important thing to living well, your money.

In any case if you purchase mortgage insurance from a licensed representative, someone with a life insurance license, these things won't happen because all the pre-work is done up front and honestly.

Most life insurance licensed professionals work with about 12 difference insurance companies so they are able to shop around and get the best prices, and in some cases cheaper than what the bank is quoting.

Who do you want to put your trust into? Someone who is licensed and trained at what they do, or someone who is doing what their bank manager told them they should do....make a sale.

More information on mortgage insurance can be found on my website at www.janeabellay.com