Marketplace Video from CBC about the Dangers of Mortgage Life Insurance
Marketplace points out how Banks’s Mortgage Life Insurance has many twists and turns
This video from CBC’s Marketplace program shows how regular Canadians who purchased Mortgage Life Insurance from their banks (TD Canada Trust featured).
Post-claim underwriting is the bank’s process of doing health underwriting at the time of claim, so you don’t know whether of not you are really covered by the bank’s mortgage life insurance until someone dies, and you go to claim. The bank’s are trying to save money on pre-underwriting expenses so that their product is more profitable. And, considering many people who are paying monthly premiums are not actually insured, the business is even more profitable because the bank only has to return premiums when the uninsurable person dies. Collect premium from clients and never pay a death benefit.
If you buy life insurance from a licensed life insurance broker you get fully underwritten upfront, with a detailed medical questionnaire, filled out with a qualified broker who is experienced at doing field underwriting. Detailed medical evidence is collected and submitted to the life insurance company before you ever start paying premiums. Once you are approved, you truly know you have life insurance protection, unlike the bank’s mortgage life insurance policy.
Please view this video about the dangers of Mortgage Life Insurance to protect yourself and your family properly
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