Mortgage Insurance/Collateral Loan Insurance

What you don't know about your Mortgage Insurance could put you in jeopardy. Many people when taking a Mortgage from their bank also agree to have Mortgage Insurance added to their monthly payment thinking this is the best thing to do. But little is explained to them about the insurance and the qualifying medical question is misleading, which can lead to claims being denied and leaving the surviving spouse with no means to pay off the debt. A recent report by CBC Marketplace on Feb. 6, 2008, reveals details about Mortgage Insurance that few people know about - until its too late. Watch the video clip to become informed and let The Benefits Edge find the best coverage for you.

In addition to the critical information on the video clip, here is a list of questions and answers when considering Mortgage Insurance:

Can I choose my own beneficiary for the insurance proceeds?
Not with mortgage insurance arranged with your mortgage lender. Your lender is also the policy owner and they automatically become the beneficiary of all proceeds.

An individual Insurance policy obtained through The Benefits Edge will allow you to choose your beneficiary.

Can I apply for more coverage for other needs?
With your mortgage lender, you can only apply for an amount equal to the initial mortgage. In consultation with The Benefits Edge you can tailor your individual policy to your needs which may be a larger amount of coverage or a mix of different products. Also insurance through the lender decreases as your mortgage balance decreases, but your cost remains the same. Your individual policy can keep your insurance coverage the same, increasing over the years or decreasing, maximizing flexibility.

Are my premiums fully guaranteed?
Premiums paid through a mortgage lender are on a group basis and therefore can be increased on a group basis if the experience of that group becomes unfavourable. Also if you change lenders for a better rate in the future, the mortgage insurance through your lender is not portable. You will have to requalify and pay rates based on your current age. Individual insurance arranged through The Benefits Edge locks in your original age and the premiums are guaranteed. Your individual insurance is not tied to your lender so changing banks, lenders or decreasing balances, have no effect on your insurance.

What is my premium based on?
Mortgage Insurance through your lender will be based solely on age whereas Individual insurance takes into account your smoking status and your health.... a non-smoking person classed as a better health risk can obtain preferred pricing. Individual plans also allow you to convert your coverage to another policy at a later date. You will be paying a rate based on your current age but your health will not be underwritten again with a policy conversion. Your lenders mortgage insurance allows no conversions.

The best deal for Mortgage Insurance is one that offers portability, flexibility, price guarantees and the ability to choose who will get the proceeds. An Individual Life Insurance policy can cover your mortgage, other debts and the loss of your income for your family. Call The Benefits Edge to get the right policy.