You've been presented with mortgage life insurance papers along with your mortgage documents to sign at the bank. You're ready to sign for your mortgage, but what about the MLI? How do you know if your coverage works for you?
In our 2018 survey of over 600 Calgarians, more than 80% of respondents said it would take more than 1 month for them to make a life insurance purchase decision. We’ve long said that we disagree with the common practice of providing new homeowners with additional paperwork for MLI to sign at the time of their mortgage, and the fact that families considering mortgage life insurance products want to take their time reinforces our stance even more.
Here is our rundown of how to take your time, do your research, and learn more about whether MLI is right for you.
The Mortgage Life Insurance Journey
When considering the number of individuals who feel pushed into a product that they didn’t necessarily wholeheartedly want, it’s easy to see why mortgage life insurance can have a bad reputation.
This is also compounded by the fact that not many people feel confident or educated on the topic. Our study also revealed that 81.5% of respondents opted to not answer the question “What is mortgage life insurance?” Of those who did respond, 28.57% stated they did not know, and 4.76% provided an incorrect answer.
We know that for many families, finding the right product for their needs can take anywhere from a week to several months, depending on how much you already know and have decided.
That's why we believe in educating and empowering customers to decide whether mortgage life insurance is the right policy for them, and that's why, inspired by our study, we're providing a brief outline for families who are beginning their research on mortgage life insurance.
1. Step 1: Improve Your Insurance and Financial Knowledge
While you don't need to be a financial planner or insurance advisor, we suggest connecting with one. You can also check out resources, such as one of our latest blogs, on improving your financial literacy, learning the difference between term life and mortgage life insurance, and deciding if mortgage life insurance is right for you.
2. Step 2: Ask The Right Questions
If you decide that mortgage life insurance is the right option for you, it's important to do your research when selecting which policy and provider you want to go with. It's been well-documented, for example, that numerous bank-issued policies are needlessly restrictive.
To make sure that you're getting the best deal at an affordable rate, if you’re considering MLI, ask any provider these questions:
- Where does the payout go?
- Does the policy include critical illness or disability coverage?
- Will my payment automatically cancel when my mortgage is paid off?
- What happens if I switch mortgage lenders?
- Will my payments ever increase?
- Who should I get in touch with to cancel my policy?
The answers to these questions can help you narrow down your provider and plan options to a shortlist as you proceed to the next step. 20/20 Mortgage Life Insurance is flexible, it pays out to the beneficiary of your choice, and it's portable, meaning that you can keep your policy even if you switch mortgage lenders. Additionally, with 20/20 Mortgage life, you can be sure your premiums will never increase.
Step 3: Get Quotes
Once you have found providers who meet your needs, it’s time to set about gathering quotes.
With 20/20 Mortgage Life Insurance, one of our agents can provide you with a customized quote and help you determine which types of coverage you are most eligible for.
When comparing quotes, ensure that you list the features of your insurance in a way that allows for "apples to apples" comparisons. If the policies available have different features, you might want to consider not just the price you'll be paying but the value of these features.
Step 4: Apply For Coverage
Once you've selected your insurance company, it's time to apply for coverage. Depending on the company you choose, there may be paperwork to fill out, as well as a medical exam. At 20/20, all our applications can be done by phone, which significantly cuts down on the time you spend waiting to hear about your approval. Additionally, most of our policies do not require medical exams.
Step 5: Finalize Your Coverage
If you are accepted for coverage, you can move on towards finalizing the details. In a case where you aren't accepted, your licensed agent can help you find alternate coverage options. When finalizing your coverage, you provide your insurance provider with payment information for your monthly emails. You will also receive a copy of your policy, which is important to keep on hand.
Contact Us
To learn more about mortgage life insurance, or to chat with an agent, give us a call at 1-866-278-0495, or send us a message through our online contact form. Want to get in touch right away? Simply click the chat button in the bottom right corner of your screen. We'd love to hear from you!
