This week's guest blogger is Jenn Styslo from Blue Lotus Wealth Management.
It seems like a simple fix to a common concern. You’re already sitting there at the bank, signing your mortgage papers and the bank employee asks you, “Would you like mortgage protection with that?” They give you a brief rundown of what it is, and you think it’s definitely convenient because you’re already there, so why not kill two birds with one stone? … Upon your acceptance of the product, a couple quick questions on an application and a signature…Boom!, your debt is now protected and your family is secure!
Unfortunately though, not all insurance is created equal and in most cases you’re missing out on a better overall fix for your situation.
The majority of us do not have the means to “self-insure” due to cash flow and limited savings, so we turn to products on the market to cover off these various risks for our families. We turn to insurance products because we don’t want to leave our families in a lurch when we pass, especially if we pass before our expected ‘expiry date’ (also known as life expectancy). Outside of protection in the event of death, insurance is also used for; covering off loss of income due to illness and injury while still living, a great alternative way for saving outside of your more commonly known market based products (Stocks, GIC’s, Mutual funds, etc.), as well as for estate planning and leaving behind a legacy.
For this discussion, we will just be comparing two products; Term Life Insurance and Bank Mortgage Insurance.
Term life insurance is an inexpensive way to cover off the “what ifs” and it fits nicely into a financial plan no matter where the risks are that might need to covered off.
Bank mortgage insurance is a product that is used to cover off the debt owing on your home upon your death, in order to leave your family mortgage free.
Please see the chart below that outlines some of the differences between the two products.
I have also provided my contact information, in the event that you would like to reach out to further discuss your personal situation with me.
Jenn Styslo, Insurance/Wealth Consultan