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Term Insurance
Term insurance (or "pure insurance") policies usually have lower premiums at younger ages. They generally offer the least expensive and least complicated type of life insurance. The provide insurance protection at a low cost for a specified period of time - 1, 10 or 20 years. If you die in the term period, a death benefit is paid to your beneficiary. If you are living at the end of the term, protection ceases unless the policy is renewed. There is no "accumulation" feature, or cash end value. You are simply paying the cost of insuring against the risk of your death in the current year, and nothing more.
So long as you continue to pay premiums, your coverage will continue. Many policies guarantee renewal without additional medical evidence as long as you remain in the plan. However, the cost of premiums may increase dramatically in later years. Most term policies terminate at age 70 to 75, which is lower than the current average life expectancy. Many insurance companies also offer "Term to 100" policies.
Mortgage Insurance
Mortgage insurance is a kind of term insurance designed for people who want a mortgage protection product to pay a death benefit that can be used to pay off their mortgage. If you purchase a term life insurance policy that covers your mortgage amount and length, you will not only have the peace of mind that your loved ones will be able to afford the mortgage on their own, but you will also have the peace of mind that you can afford the payments on your insurance policy! With current low prices, term life insurance is an affordable way to ensure that both your mortgage and your loved ones are protected. Brochure: Solution 20 (PDF)
How We Compare?
Purchase your mortgage insurance through Maclean Financial Group and you control the policy - not the bank or lending institution. You choose the beneficiary. You can move your mortgage to another institution without having to re-apply for insurance. With lender-issued coverage, you are restricted to the plan offered by one company. Maclean Financial Group can help you shop for the best rates and terms amongst dozens of insurance companies. Our insurance programs can often accomodate people whose age or health does not allow lender owned coverage to be issued.
With Trust Companies,
Credit Unions & Banks: |
With MacLEAN & MacLEAN
Financial Group: |
You have little control over the specific details of the group policy. |
You have total control. |
You must choose one company's group product. |
We shop the market for the best rates and features. |
Your insurance is limited to the amount of the mortgage for which you have applied. |
You set the amount and length of time for the coverage. |
Insurance decreases with mortgage balance owing. |
We can integrate your insurance with other policies to maintain value. |
Insurance coverage is cancelled when mortgage loan or plan terminates. |
You decide when to cancel. The policy is portable for other uses. |
You cannot designate beneficiary. Insurance proceeds go to the Lender. |
You choose the beneficiary and the proceeds can be used for any purpose. |
Term insurance is not convertible to other types of insurance. |
Your term policy can be converted regardless of health, up to age 65. |
Claims are paid out for one life only, even if both spouses are insured. |
You and your spouse can each be insured for the same amount, or custom amounts, and claims can be paid on each life insured. |
Your coverage does not provide cash values. |
Your policy can be designed to provide cash values which could provide a lump sum to pay your mortgage off early! |
Banks are only interested in securing the mortgage. |
We want to make a positive difference in your financial life. |
Who needs term insurance?
Term insurance is for people with a temporary need for life insurance protection and for those who need a large amount of insurance protection but have limited budgets. It provides insurance protection for a low cost (at least initially) and when your needs change, most policies allow you to convert your term policy for a permanent life insurance policy without having to take a medical exam or provide other information about your health. Term insurance is a good way to supplement other coverage when you have added financial responsibilities for a given period of time, such as a mortgage.
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