Save money by refusing life and disability insurance?
If you have recently signed a mortgage loan for a new purchase from an institution, you have probably noticed that your advisor has tried multiple times to sell you life and disability insurance built into your mortgage. You may have even given in. This is an error that costs several thousand dollars. Explanations.
Life and disability insurance: optional and sometimes useless
When you take out a mortgage, life and disability insurance is anything but mandatory. In addition, the insurance offered by your employer often provides sufficient coverage for this type of risk. Which means that if you take out such insurance, you pay for nothing.
Not only is it useless, but this type of protection is also very expensive when it is built into the mortgage. This integration makes it possible to hide its real cost.
If you really want to take out life and disability insurance, you have every interest in buying it from another company. Not only will you get better terms, but you will not be tied to your lending institution in case of renewal and when you are covered by the contract.
Do not fall into the trap of banks
It was a Consumer Options survey that revealed that lending institutions are working hard to convince their clients to incorporate life and disability insurance into their mortgage loan agreements. Sometimes even pushing them to make false statements!
Life insurance, a scourge not just about the mortgage
These remarks about the mortgage actually apply to many other types of credits. But before you commit, check that your group insurance does not already cover this risk. If this is not the case, consider including this protection and increase the premium: it will be cheaper. Self-employed individuals can usually purchase this type of insurance at attractive rates through their professional association. If these options are not for you, then you still have the card of the private insurer, which will offer you lower prices than those practiced by the institution
Your mortgage broker is surrounded by professionals
During the steps of your application for mortgage financing, if you wish, your broker will know how to share with you the professionals who will allow you to compare the options available to you.