Protect Yourself, Not Your Bank [Mortgage Insurance]

Updated:
May 8, 2019

Take control of your mortgage protection; individually-owned life insurance gives you more control over your options.

With Bank-Owned Mortgage Insurance, you may not always be covered

  • Your insurance only covers the balance of your mortgage. While your debt reduces over time, the premium remains the same.
  • If you die, only the outstanding balance on your mortgage is paid directly to the bank/trust company.
  • If you take your mortgage to another lender, you will lose your existing mortgage insurance and will be required to re-qualify for new coverage.
  • You lose all your coverage when your mortgage is: repaid, assumed, or in default.
  • You have no flexibility to change your coverage as your needs change.
  • Medical underwriting is done at the time of a claim, which can leave a grey area to refuse paying a claim.
  • Typical mortgage insurance rates are not guaranteed.

But, with Individually-Owned Mortgage Insurance, you are in control!

  • Your coverage amount doesn't reduce as your mortgage balance decreases.
  • You own the policy and the beneficiary(ies) you want.
  • Your mortgage protection remains intact even if you switch lenders or sell your property.
  • You can match the term length to your amortization period.
  • You have the option of converting your policy, regardless of your health.
  • Full underwriting is done at the time of application.
  • Your rates are guaranteed for the life of the policy contract.

For more information on how owning your own mortgage insurance policy can give you more control and peace of mind, contact David Scrivens at 613-782-1104 or dscrivens@scrivens.ca.

FAQs

What is financial advising?

Financial advising involves providing guidance and advice to individuals, families, or businesses to help them make informed decisions about their financial matters. This can include various aspects such as investment planning, retirement planning, tax planning, estate planning, and more. Financial advisors analyze their clients' financial situations, goals, and risk tolerance to create customized strategies that align with their objectives.

Why is financial planning important?

Financial planning is crucial for several reasons:

Goal Achievement: It helps individuals set and achieve financial goals, whether they are short-term, such as buying a home, or long-term, like funding a comfortable retirement.

Risk Management: Financial planning addresses risks by considering insurance, emergency funds, and other protective measures.

Budgeting and Saving: It promotes responsible money management through budgeting and saving, fostering financial stability.

Wealth Building: Effective financial planning can lead to wealth accumulation and the creation of a secure financial future.

Can financial advisors help with debt?

Yes, financial advisors can help with debt management. They can assess your overall financial situation, create a budget, and develop strategies to pay down debt efficiently. They may also negotiate with creditors on your behalf, provide debt consolidation recommendations, and offer guidance on prioritizing and managing debt repayment.

What exactly does a financial advisor do?

The specific responsibilities of a financial advisor can vary, but generally, they:

  1. Conduct a thorough analysis of a client's financial situation, including income, expenses, assets, and liabilities.
  2. Develop personalized financial plans based on the client's goals, risk tolerance, and time horizon.
  3. Provide investment advice and portfolio management services.
  4. Offer guidance on retirement planning, estate planning, tax planning, and insurance.
  5. Monitor and adjust financial plans as needed based on changes in the client's life or market conditions.
  6. Educate clients on financial matters and empower them to make informed decisions.
What is the average fee for a financial advisor?

The fees charged by financial advisors can vary widely based on factors such as the advisor's experience, the services provided, and the region.

Common fee structures include:

Hourly Fees: Advisors charge an hourly rate for their services.
Flat or Fixed Fees: A set fee is charged for specific services or a comprehensive financial plan.
Asset-based Fees: Fees are a percentage of the assets under management (AUM).
Commission-based Fees: Advisors earn commissions on financial products they sell.
Combination of Fees: Advisors may use a combination of the above fee structures.
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It's important to discuss and clarify fee arrangements with a potential financial advisor before engaging in their services.