House Insurance Question

[pseclint]

Hey guys so Im moving into a new house in Feb of 2011 here and I guess Scotiabank is sending over someone to piss test and blood test me for house insurance........

is this normal?

Where does everyone have their home insurance?

My mortgage is with Scotia so it was just easiest to keep my insurance with them......

[cyto33]

i went thro state farm and no problems like that.

[Spyder122]

I've never heard of doing a blood and piss test for home insurance. That's a bid odd.

[guest]

i did this not too long ago. that's mortgage insurance and you do not want it through the bank. i am sure someone here can explain better 'why' than i can (it's a rip off). go see an insurance broker, they will find you the best deal. i saved a lot of loot got better terms and wound up getting coverage from canadalife (the same company the bank was going to use, minus the mark up and lopsided terms).

as far as your in house medical check up here are some tips:
http://www.accuquote.com/exam.cfm

[tiramisu]

... What he said. Shop for your insurance. I had adequate life/ltd through work. I had no need of theirs. An insurance broker can almost always get you a better rate. It's what they do.

[Talo]

No need to give your blood or piss for house insurance. Life insurance is a different story.

HOuse insurance has nothing to do with health.

[Iwant2Grow]

this is why you don't want to get mortgage insurance through your bank
note mortgage insurance is the insurance which covers the balance on loan from the bank to buy your house. Im insurance broker feel free to pm for more info

The Simple Life…of Mortgage Insurance

I recently read an article written by William E. McLeod, MBA, a retired community college professor and author of The Canadian Buyer’s Guide to Life Insurance. The article provided a convincing argument in favour of purchasing bank mortgage insurance over individual life insurance - no sales costs, cheaper premiums, ease of purchase, etc, etc, etc.

But it was his last statement that spoke volumes.

"Finally, mortgage insurance should only be a part of a well-designed life insurance portfolio. It only pays off the mortgage and leaves nothing for living expenses, so I recommend getting term insurance as well."

BINGO!!!

How often is this line mentioned to your clients when they are sitting in the Bank’s office considering their options – which at the time only seem to be, "do we buy the Bank insurance or do we go with no coverage at all?" Is the client fully aware of the impact of their decision? For example:

1) LACK OF CONROL: the lender owns the policy and the client has no control over it

2) LENDER IS THE BENEFICIARY: death benefit is automatically used to pay off the mortgage

3) BENEFIT DECREASES: as your mortgage becomes less the insurance coverage decreases

4) MAY BE DIFFICULT TO CHANGE LENDERS: if you wish to move your Mortgage to a different provider you won't be able to take the mortgage insurance protection with you

5) PREMIUM NOT GUARANTEED: the lender can change the premiums or cancel the policy all together

6) ONE DEATH BENEFIT PAID: in the event of a common disaster only the mortgage balance outstanding will be paid-off

7) NO INTEGRATION: cannot be integrated into a proper insurance portfolio.

When an "mortgage specialist", who is not life licensed, from the bank recommends Bank mortgage life insurance are they really acting with their client’s best interests in mind?

As "Insurance Brokers" we should go to lengths to ensure a well-designed life insurance portfolio is recommended to each of our clients in order to fulfill our professional and fiduciary responsibilities, which are outlined in our "code of conduct".

Many clients constantly rethink their financial plans to make better use of their money. But it’s not always easy when they don’t have control and the unexpected occurs, sometimes more frequently than desired. For these reasons a well-designed life insurance portfolio managed by a licensed insurance broker provides solutions that:

1) PROVIDE GREATER CONTROL: client owns the policy and has flexibility to make changes at anytime

2) BENEFICIARY: you can change the beneficiary anytime if you have elected a revocable beneficiary

3) NOT LINKED TO LENDER: if you want to change your mortgage provider or the mortgage is paid-off the insurance protection remains inforce

4) CONVERSION OPTIONS: you can select a policy that has a conversion option that will grant you the option of changing the coverage to permanent protection in the future regardless of health

5) COVERAGE LEVEL VERSATILE: you can purchase any amount of coverage and add or decrease coverage at anytime

6) PREMIUM GUARANTEE: level or renewable premiums can be guaranteed for life

7) ADDITIONAL PROTECTION IF BECOME ILL: if you become terminally ill and can't pay your mortgage payments but can still make the insurance payments you policy will pay the death benefit

8) BENEFIT REMAINS LEVEL: death benefit does not decrease as mortgage decreases unless you request the coverage to be decreased

9) POSSIBILITY OF TWO DEATH BENEFITS PAID: if you elect to cover both yourself and spouse then both death benefits will be paid out in the event of a common disaster

10) INTEGRATION: can be integrated with the full insurance portfolio, which may reduce premiums

Mortgage insurance is about protecting the clients loved ones. It's a simple concept, but the work has to be done to determine the needs and most appropriate solution for each individual client.

[GYMBRAT]

thats fked haha....I'm with Scotia as well but thats a first for me

[Iwant2Grow]

sorry trying to up load a .zip file with some client hand outs but can't save it to the post sorry

i can email if anyone really wants more info

if you have any questions about how the medical works i can answer that as well

heres another example on mortgage insurance VS the credtor coverage offered through the banks

Protecting a mortgage: Marissa and Marcello's story


Article from http://www.theglobeandmail.com/globe-investor/investment-ideas/investor-education/protecting-a-mortgage-marissa-and-marcellos-story/article730525/

[clicker666]

I didn't realize what a con mortgage insurance was until I paid for it for a year. I then sat down and looked at it and realized it was optional. I upgraded my personal life insurance at work to cover me for the balance of our mortgage and then some for a few bucks a month, and my wife doesn't have to worry about any debts in the event I die.

I also got her some coverage through work (40k) plus some for the kids too.

The downside of mortgage insurance was that the premium never decreased although the benefit did. The benefit would only cover the outstanding mortgage. I figured I could pay less and have a benefit that remained high no matter how much was left on the mortgage.