The glaring limitations of bank-issued mortgage protection insurance, especially when it comes to switching lenders, has given this product a bad name. However, with 20/20, you get a flexible and transparent mortgage life insurance policy that ALWAYS works in your favor.
If you’re over the age of 50 and you still owe on your house, you may want to consider purchasing mortgage life insurance. With this protection, you can rest assured knowing that your mortgage will be paid in full if something were to happen to you, and your loved ones would never have to worry about losing their home.
However, it is true that, despite some obvious benefits of bank-issued mortgage life insurance, this product has some serious limitations, including:
- your rates don’t decrease, but your coverage does as you continue to pay off your mortgage.
- the insurance benefit will be payable to your lender NOT your family
- if you move houses, you’ll have to reapply and re-qualify for a new mortgage life insurance and oftentimes, your premiums will be much higher.
20/20’s Mortgage Life Insurance Gives You Ultimate Protection
The aim of 20/20 is to give Canadians more accessible and transparent mortgage life insurance compared to the bank’s. Our experts have designed a product that is much simpler, more cost-effective, and focused entirely on YOUR best interests.
Want to know more?
Reasons Why You Might Switch Mortgage Lenders
When your mortgage term comes up for renewal, you have several decisions to make - one of the most important being whether you want to stay with your current lender, or switch providers.
There are two main reasons why the majority of people would consider switching their mortgage lenders, including:
-
To obtain a lower mortgage rate: If another lender can offer you a lower mortgage rate than what your current mortgage provider has, switching could save you from having to pay potentially thousands of dollars in interest charges.
-
To get better terms and conditions: This is especially true when it comes to prepayment. If a new lender can offer you better prepayment options than your current mortgage provider, switching could help you pay off your mortgage sooner and save you from having to pay additional interest costs.
Switching Mortgage Lenders: Banks vs 20/20
While switching can often be the best option, doing so with bank-issued mortgage life insurance isn’t always easy! This is especially true with a bank-issued mortgage protection insurance, as switching lenders can come with:
- the need to re-qualify for mortgage life insurance at an older age
- higher premiums
- high collateral charges (eg. legal/registration fees, an appraisal fee, and/or a discharge fee)
This can often be a significant roadblock for clients who want the flexibility of having the choice of transferring out to another lender.
With 20/20, You Can Take Your Mortgage Life Insurance With You!
The 20/20 Mortgage Life Insurance product was designed with the customer in mind. We want to ensure that we offer mortgage insurance protection to almost anyone at a fair price, and with as much flexibility as possible.
That’s why, with 20/20, you own your mortgage life insurance. This means that your coverage is NOT linked in any way to the lender. Therefore, you can switch providers without any impact on your policy and continue to pay the premium that was originally quoted when you first signed up.
Call Today
To find out more about how our flexible and affordable mortgage life insurance products work to protect you and your family, contact us at 1-866-821-1439 or fill in our online contact form.
