 olivia
Joined: 19 Mar 2006
Posts: 13
3.76 Dollars($)
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 Posted: Fri Oct 06, 2006 2:30 am Post subject: Life Insurance – A better alternative to Mortgage Insurance |
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Life insurance seems to be a cheaper alternative to mortgage insurance for most home buyers in Canada. Most buyers purchase mortgage insurance policies from the bank without carefully shopping for a reasonable price. So, they hardly get to know about he various options available in the market, As a result they often end up paying more with the bank.
A mortgage insurance policy offers coverage for the outstanding balance on a home loan. But the life insurance policy can help you pay for other items like your child's education, taxes and expenses apart from repaying the outstanding debt. It does not require a buyer to qualify for the coverage during the term if they purchase a home or switch lenders.
However, mortgage insurance will require a buyer to re-qualify with the new financial institution which may charge higher premiums. The coverage of protection in this type of insurance reduces with every monthly payment on the loan. But the monthly premiums remain the same. This implies that buyers availing this insurance pay a higher premium per $1000 of the coverage as the debt goes down each month.
On the other hand, life insurance policies often provide discounts for up to 25% provided the policy holder has a good family history. And, one can also convert a renewable and convertible policy into a permanent policy any time without going through medical exam. Moreover, for a life insurance policy you do not have to pay provincial sales tax as is required for mortgage insurance.
Experts do feel that life insurance policies are less costly but more beneficial than mortgage insurance policy and that is why nowadays they recommend life insurance policies to most home buyers.
Source: Cbc News |
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charlesarmbruster
Community Experts
Joined: 12 Oct 2006
Posts: 169
Location: Mesa, AZ
43.73 Dollars($)
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| Posted: Thu Oct 12, 2006 4:33 pm Post subject: Option ARMs and Life Insurance |
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A wise handler of the family funds should investigate OPTION ARM refinance programs which allow a cash-flow to pay into universal variable life investment products which can provide great sums for the future. Invest your equity, refinance back into a Fixed product and let your newly invested equity compound for college funds, for retirement, for posterity.
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Chuck Armbruster
Phoenix, AZ |
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