Just months before celebrating my 70 th birthday, it was my surprise to receive a letter from my bank telling me the day of my 70 years would also mark the end of my mortgage insurance!
Quite a birthday present, quite a present… poisoned!
Poisoned in part because the premiums are overpriced for those in their seventies , which puts my family at risk of getting into mortgage debt. I must also bet on an excellent health check, insurers are obviously on the lookout when the time comes to flush out any minor ailment (just to add a few surcharges to the contract, or even to refuse the renewal of the said contract).
And why on earth do they expect our 70 th anniversary to remind us that our mortgage insurance will soon end?
Many people my age these days have mortgages that allow them to make dreams come true. such as buying a second home, a condominium or a motor home or, why not, to help their children pay off their mortgage.
That said, it is important to note that personal temporary insurance, for example, costs considerably less in the private sector, just as it remains fixed and, therefore, never decreases.
This is a question that I have always asked myself, namely why does my insurance decrease as I get older? However, it should cost less, given that it is only after I die that my family will need it ... because we agree, it is not during my lifetime that my life insurance Will be of some use to them, but once I'm dead and buried!
In the same vein, since the premium will remain fixed, it is preferable to take out a fixed term insurance until the age of 85 years and, why not, until our hundredth birthday.
Here is a list of the benefits of private sector mortgage insurance vs. mortgage lender insurance:
- When it comes time to purchase mortgage insurance, you'll pay off your loan faster if you're not dealing with a credit union or bank. Why? Quite simply, the cost of insurance will not add to your interest rate, saving thousands of dollars over the life of your loan.
- The verification of your state of health takes place before the acceptance of the contract , and not at the time of a possible complaint (thus avoiding a potential refusal).
- As this insurance is not linked to your mortgage loan, you are the sole owner of your contract and you name the beneficiaries.
- You have the possibility to subscribe only to disability insurance, and to choose the amount of the monthly benefit can cover all the loans (unlike the mortgage insurance of the fund or the bank).
- You can also take out life insurance in the amount of your choice (unlike insurance from the fund or the bank).
- If necessary, you can convert your life insurance into permanent life insurance without any medical proof.
- You have the option of canceling the mortgage insurance you have obtained from the credit union or the bank at any time , without incurring any penalty.