When it comes to protecting your mortgage, your bank wants you to think that mortgage insurance is your only option. But it’s not. Term insurance from ivari can offer more protection, more flexibility and more value than traditional mortgage insurance, and often for a better price.
1. More protection
With mortgage insurance, your bank actually owns the policy, not you. If you were to die before your mortgage was paid off, the bank would get the proceeds from the policy. Your estate would not receive a cent. So, who is really protected here…you or your bank? Term insurance pays the proceeds to your beneficiaries who can then choose to pay off your existing mortgage…or not.
2. More flexibility
Mortgage insurance from your bank is tied to the home it was purchased for. If you move, refinance or renegotiate your mortgage, you cannot transfer your policy and you will have to requalify. Term insurance is attached to the person, or persons, the policy is covering and stays with you regardless of where you live, how many times you move or if you refinance your home.
Plus, a term insurance policy from ivari can be converted to an eligible permanent plan any time prior to the policy anniversary that is closest to the life insured’s 71st birthday.
3. More value
You may not have considered this, but mortgage insurance only covers the outstanding balance of your mortgage. In other words, the benefits of your policy decrease as you pay off your mortgage, even though the cost you pay remains the same. When your mortgage is paid off, the policy is no longer in effect. With term insurance, the face value, or death benefit amount, doesn’t change regardless of whether your mortgage is $100,000 or $0.
Talk to your advisor about how term insurance from ivari can help protect your family’s future.
Disclaimer
This article is intended for general information purposes only and should not be considered specific or personal investment, insurance, estate planning, legal or tax advice or a solicitation to purchase insurance. Nor should any medical information provided in this article be considered medical or health advice and should not be considered a substitute for advice from a qualified medical professional. While reasonable efforts have been made to ensure that the contents of this article have been derived from sources believed to be reliable and accurate at the time of publication, ivari does not warrant the accuracy or completeness of the information contained herein.
For your convenience, this article may provide links to third-party sites, ivari makes no representations about these sites and access by you is at your own risk.
References to any products or services by trade name, trademark or otherwise, does not constitute or imply endorsement, recommendation or validation by ivari.
Categories
- Life insurance
- Personal finance and saving