Do you have a mortgage? Is the mortgage insured through your bank? If so, you may not want to read this. If you have a mortgage on your home, chances are good you also have mortgage insurance. The idea is that if you should become seriously ill or die before paying off the mortgage, the coverage will kick in and pay it off for you. It’s meant to offer peace of mind and to reassure you that your family will be able to stay in your home if anything should happen to you. The reality falls a little short of that. In CBC's Marketplace investigation, they interviewed two families who bought bank mortgage coverage and thought they were protected, only to have their claims denied when one mortgage signee became sick and another died.

In each case, the bank said the applicant person had lied on their initial application form. This was not the case; the bank was at fault for not asking them the relevant questions.

Insurance companies, unlike banks, require a full paramedical, a blood test, a urine test and an Attending Physician Statement (APS) from your doctor in most cases prior to underwriting (approving) your insurance coverage. Banks don't. Banks ask a few simple questions over the phone, mostly stamp approval because they want your money!

You probably don't know this but the bank staffers selling mortgage insurance (otherwise known as credit insurance) are unlicensed and rarely trained to explain the details and legalities of insurance products. The result is people, who pay premiums and think they are covered, end up in a lot cases, having a claim declined.

Are you willing to take a chance with your family finance? Can you imagine the angst of the surviving family member when a claim for life insurance they thought was secure, is denied? There are only two ways of underwriting life insurance. At the time of application or at time of death or at claim. Doesn't it make sense to deal with a professional broker when your family's future is on the line and have your life insurance secured?

Are you 100% confident that your bank really cares about you? Read the accompanying article if you want to save money and sleep well.

Please call Michael today for quote; 778-389-5866