Why Choose a Broker Over Your Bank?
When securing a mortgage, you’ll likely encounter the option of mortgage insurance. Indeed, banks offer this convenience. However, many Canadians are discovering the significant advantages of working with an independent life insurance broker like Nova Star Insurance. Therefore, let’s delve into the differences and, more importantly, explain why a broker might be the better choice for you.
Understanding Mortgage Insurance: The Basics
Mortgage insurance, essentially, is designed to pay off your mortgage balance in the event of your death or a critical illness, providing financial security for your loved ones. Both banks and brokers offer this protection; however, the delivery and benefits differ greatly.
Mortgage Insurance Through a Bank: A Closer Look
- Convenience: Primarily, it’s offered directly by your lender during the mortgage process, thus simplifying initial steps. HOWEVER…
- Control: The bank owns the coverage and the bank is the beneficiary – You as the client have zero control
- Transferability: Should you wish to transfer your mortgage to another financial institution, your insurance coverage stops. Your new coverage at the new financial institution will be based on new rates (if you are insurable)
- Declining Benefit: Specifically, the premium remains high however, the payout decreases as your mortgage balance decreases, consequently offering less protection over time
- Limited Options: Moreover, it’s tied to the lender’s specific insurance product, restricting your choices.
- Underwriting at Claim Time: Notably, medical underwriting usually happens at the time of claim, which can cause unexpected denials.
Mortgage Insurance Through a Life Insurance Broker: The Advantages
- Personalized Advice: Conversely, brokers assess your individual needs and recommend tailored solutions, ensuring a perfect fit.
- Individual Policy: Furthermore, you own the policy, providing more control and flexibility, thereby enhancing security.
- Level Benefit: In contrast, the payout remains constant throughout the policy term, ensuring consistent protection.
- Wide Range of Options: Additionally, you gain access to multiple insurers and products, allowing for better comparisons.
- Upfront Underwriting: Crucially, medical underwriting happens at the time of application, providing certainty and avoiding surprises.
- Portability: Finally, if you move your mortgage, your policy moves with you, offering unparalleled flexibility.
- Decision: Approved or declined pricing is based on blended rates.
Why Choose Nova Star Insurance? The Distinctive Benefits
- Access to Multiple Insurers: To begin with, we work with numerous reputable insurance companies, therefore ensuring you get competitive rates and comprehensive coverage.
- Expert Guidance: Secondly, our experienced brokers provide personalized advice and support throughout the process, guiding you every step of the way.
- Tailored Solutions: Thirdly, we understand your unique needs and recommend the best mortgage insurance options for your situation, ensuring optimal protection.
- Pricing: Pricing is based on smoker and non-smoker rates.
- Decision: With Nova Star Insurance, it’s not black and white. the decision types are approval, rated and declined rather than approved and declined at the banks.
The Nova Star Advantage: Extra Perks
- Personalized Service: Above all, we take the time to understand your unique needs and risk profile, tailoring insurance solutions to fit your specific circumstances, thereby providing superior service.
- Competitive Pricing: As such, as independent brokers, we have access to a wide range of insurance carriers, allowing us to compare policies and find the most cost-effective solutions for you, maximizing your savings.
- Expert Guidance: In addition, our experienced brokers can provide valuable insights and advice on the best coverage options available, ensuring you make informed decisions.
Making the Right Choice: The Final Verdict
While, admittedly, bank mortgage insurance offers convenience, working with a life insurance broker like Nova Star Insurance provides greater flexibility, personalized advice, and, more significantly, potentially better value.
Get Personalized Mortgage Insurance Advice Today!
Therefore, do not settle for a one-size-fits-all approach. Instead, right now, contact Nova Star Insurance.
