Do you have a mortgage?
If you do and you have mortgage insurance, we should talk...Because, you're paying for insurance that you don’t own and may not even pay out – not to mention it’s worth less every time you make a mortgage payment.
Let’s replace that with proper term life and critical illness insurance that you own, that will not diminish over time, and is guaranteed to pay out if a claim is made.
So, what am I talking about here?
Well, I looked into the numbers for the 5 big Canadian banks not too long ago:
The costs are all basically the same, except Scotia is a bit of an outlier in terms of costs.
So, let’s say I was a 35 Male looking for a mortgage for $500,000, what would I pay in terms of mortgage insurance?
Well, the cheapest is with CIBC for about $65 per month and the most expensive is Scotia at $90 per month.
This is insane.
What does life insurance cost?
Well, I’m glad you asked:
For example, we have a 10-year term policy for a 35-year-old male that costs: ready?
About $30/month.
Term 20? About $40.
Term 25 (probably the length of the mortgage)? About $50.
And Term 30 taking the client all the way to age 65? A whole $65/month.
And, by the way, these plans will renew and they're convertible (so your insurability is guaranteed and you can turn it into an investment when you've paid down your mortgage).
You can set any beneficiary you want (not just your friendly bank to take all the money).
And it’s fully underwritten (this is big, because mortgage insurance is underwritten at time of claim, so we really don't know what's going to happen).
So, this is a no brainer right?
Life insurance is a way better product and it’s cheaper.
By a lot.
If you're interested in learning more, book your free consultation below.
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