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Three Sixty Financial GroupThe following is a guest post by Desirée Dupuis, Partner at Three Sixty Financial Group.

So you’ve just borrowed a huge amount of money from the bank for your new home. As exciting as that is (and most likely overwhelming) it is important to make sure that you have the proper insurance in place in case anything ever happened to jeopardize your ability to pay mortgage.

This is where Mortgage Insurance comes into play. BUT before you assume that you know what I am talking about… let me just take a minute to explain the options available:

The typical Mortgage Insurance that is available you do not want. This is the insurance sold to you by your bank or through a mortgage protection plan sold by a mortgage broker (who may be looking to get paid rather than looking out for your best interest). (ed – A mortgage broker with their clients best interests in mind will always refer clients to an insurance broker) This type of insurance is really protecting your bank or lender. What happens is as soon as you are unable to pay your mortgage (due to the loss of your partner or an illness or disability) the bank receives your insurance money to pay your mortgage.

Now this does sound pretty nice because your mortgage is getting paid – however, wouldn’t you rather receive that money in your wallet and then decide for yourself how you would like to spend it?


This is where personal life, critical illness, and or disability insurance come in. Rather than paying the bank for insurance, its smarter for you get your own insurance coverage through an independent insurance broker. That way if anything were to happen, you or your spouse/partner will receive the lump sum of money tax free to spend however needed.

The benefits of owning your insurance personal are numerous, here are the top 3:

1. Ownership: you own your policy and your coverage is guaranteed. The only person that can cancel your coverage is you. You never have to worry about your insurance if you switch lenders or re-finance

2. Flexibility: you decide how much insurance you need (can be the amount of your mortgage or more or less depending on your situation), you decide who you want the receive the insurance payment, and you decide how long you need the insurance for (10yrs, 20yrs, to age 100, etc)

3. Cost: the rates for personal insurance are typically lower than what the bank or mortgage protection plan charges. Furthermore, you have access to preferential rates if you are a non-smoker and live a healthy and active lifestyle

Many people end up agreeing to pay for Mortgage Insurance from their bank because they are told they have to by their representative, they are pressured into it, they don’t feel like taking the extra time to meet with an insurance broker, or because they simply do not know that they have other options. If you are paying for Mortgage Insurance, I would highly recommend speaking to an independent broker and get yourself better coverage that will be benefit your family, not your bank.

If you had any questions about mortgage insurance you can contact Desirée Dupuis by any of the methods below:

Three Sixty Financial Group
#260 – 2227 St. Johns Street, Port Moody
Phone: 778.245.2262
Web: www.threesixtyfg.ca
Twitter: @threesixtyfg