How Good a Deal Is Your Banks Mortgage Insurance Plan?

When you go to the bank to get a mortgage, you'll inevitably be asked to take out mortgage insurance. The idea behind mortgage insurance is simply that if something happens to you or your spouse then your loan will be paid off which is good news for your family and the bank. Most financial institutions act like they are doing you a favor by offering you mortgage insurance through their own group plan, but are they?

The truth is that you could probably get a much better deal and at least an equal amount of protection by shopping around for your own insurance policy.

Essentially, mortgage insurance is no different than term-life insurance. With both, your policy only lasts for a specified period of time and pays its benefits if something happens to you or your spouse. The real difference comes down to how much control you'll have over your policy and how much you'll pay for it.

If you choose to use the mortgage insurance offered by the bank, you will not be able to customize a policy to fit your needs and you'll be lumped together with other borrowers under a group plan. Because of this, you will only have limited control over your policy. For example, through a third party provider, you would be able to choose your own beneficiary, decide how to spend the proceeds if necessary, and cancel the policy at any time. You would not have these options with a lending institution.

Additionally, the bank maintains the right to not renew your policy and to cancel the policy when you sell the house. If you find your own insurance provider, you can make those decisions yourself.

The other big difference is cost. A third party insurance policy's premiums will not go up, so you would pay the same premium today that you'd pay ten years from now. You won't get that same guarantee from a bank which can and probably will increase your premiums during the life of the policy. In most cases, you'll probably pay more through a bank anyway. In fact, you could pay as much as 40% more than you would if you shopped around and found your own insurance provider. Not to mention that the policy you take out through your bank will gradually decrease in value while a plan you select from an outside source will be worth the same amount during the entire policy period.

Of course, many people don't mind paying more for their mortgage insurance because it's more convenient than dealing with insurance agents. The truth is that you can easily find a policy that fits your needs and provides affordable premiums via the Internet. An organization, such as the Hughes Trustco Group, can even generate quotes for you from multiple insurance providers so you'll know that you're receiving the best deal possible on the policy you want.

The bottom line is that mortgage insurance is important and should be part of your home buying or refinancing preparations, but that does not mean you need to pay more or let the bank make important decisions for you. Instead, you should find your own personal plan from a third party provider which will let you stay in control of your policy and will save you money in the long run.

Ivon T. Hughes, The Hughes Trustco Group Ltd. Canadian Insurance Broker - Get a FREE Quote TODAY! Tel: (514)842-9001 Email: info@trustco.ca Web: http://www.trustco.ca

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Google News Updated : Wed, 09 Jul 2008 13:08:20 GMT US MBA's Mortgage Applications Index Increased 7.5% Last Week - Bloomberg 100 Mortgages US MBA's Mortgage Applications Index Increased 7.5% Last Week Bloomberg - 1 hour ago By Shobhana Chandra July 9 (Bloomberg) -- Mortgage applications in the US rose for a second straight week, a sign that falling home prices are attracting some buyers. Mortgage applications up 7.5% last week: MBA MarketWatch US mortgage applications increased last week-MBA Reuters CNN - Forbes - RTT News - 100 Mortgages all 15 news articles Publ.Date : Wed, 09 Jul 2008 11:38:08 GMT Coalition to lobby for US health-care reform - Reuters KULR-TV Coalition to lobby for US health-care reform Reuters - 17 hours ago WASHINGTON, July 8 (Reuters) - A coalition of unions, think tanks and other groups launched an advertising campaign on Tuesday saying they want to ensure that health-care reform tops the US political agenda after the November elections. Coalition begins universal health care campaign Great Falls Tribune Coalition launches push for health care reform Milwaukee Journal Sentinel Rapid City Journal - Tampa Tribune - Beyond Chron - Washington Post all 291 news articles Publ.Date : Tue, 08 Jul 2008 19:09:32 GMT Iraq Wants Withdrawal Timetable In US Pact - Washington Post ABC News Iraq Wants Withdrawal Timetable In US Pact Washington Post - 8 hours ago By Ernesto Londoño and Dan Eggen BAGHDAD, July 8 -- Iraq's national security adviser said Tuesday that his government would not sign an agreement governing the future role of US troops in Iraq unless it includes a timetable for their withdrawal. Maliki's Withdrawal Card Wall Street Journal Iraqi Officials Still Insisting on Timetable to Withdraw New York Times istockAnalyst.com - AFP - CNN - Xinhua all 1,578 news articles Publ.Date : Wed, 09 Jul 2008 04:41:08 GMT German shares up midday as financials rebound - Forbes ABC News German shares up midday as financials rebound Forbes - 1 hour ago FRANKFURT (Thomson Financial) - German shares were higher midday, led by financials, which rebounded from Tuesday's strong losses, and helped by soothing words from US Federal Reserve Chairman Ben Bernanke and easing oil prices. Fed ready to aid investment banks BBC News Fed Sees Turmoil Persisting Deep Into Next Year New York Times International Herald Tribune - Reuters - Financial Times - CNNMoney.com all 1,484 news articles Publ.Date : Wed, 09 Jul 2008 11:46:08 GMT Google adds third dimension to online social relationships - NetworkWorld.com Siliconrepublic.com Google adds third dimension to online social relationships NetworkWorld.com - 2 hours ago By Mikael Ricknäs , IDG News Service , 07/09/2008 Google has entered yet another space with the launch of Lively, a tool for creating 3D social spaces on Web sites, which is now available in a public beta test. Virtual world tipping point: Is there an enterprise use? ZDNet Google Introduces a Cartoonlike Method for Talking in Chat Rooms New York Times Reuters - The Tech Herald - eFluxMedia - Wall Street Journal all 263 news articles Publ.Date : Wed, 09 Jul 2008 11:04:08 GMT Polygamist sect leader swaps jail for hospital - MSNBC KVAL Polygamist sect leader swaps jail for hospital MSNBC - 2 hours ago Warren Jeffs, the head of the Fundamentalist Church of Jesus Christ of Latter Day Saints, has been hospitalized. Douglas C. Pizac / Pool via Getty Images FILE July 2: Michael Sean Winters, author of "Left at the Altar," joins the "Morning Joe" crew to ... Jeffs was taken to the Sunrise Hospital and Medical Center in Las ... CNN Warren Jeffs Remains In Local Hospital KXNT Salt Lake Tribune - The Associated Press - Deseret News - Las Vegas Review - Journal all 309 news articles Publ.Date : Wed, 09 Jul 2008 10:48:40 GMT G-8 Conference Tackles Global Warming Treaty - Washington Post BBC News G-8 Conference Tackles Global Warming Treaty Washington Post - 1 hour ago By Michael Abramowitz RUSUTSU, Japan, July 9-- The leaders of the countries most responsible for greenhouse gas emissions pledged Wednesday a shared effort to combat global warming, but developing countries like China and India continued to balk at the ... Bush: 'Significant progress' on climate change The Associated Press Emerging Nations Join G-8 on Climate New York Times Aljazeera.net - CNN International - Bloomberg - Telegraph.co.uk all 2,035 news articles Publ.Date : Wed, 09 Jul 2008 11:20:59 GMT RSS Datafeeds Amazon Content

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