It is possible that bank offered, creditor life insurance is not the worst deal you can ever make, but it should be in the conversation.
Ellen Roseman’s recent column in the Toronto Star is revealing. Bank’s mortgage life insurance has flaws
I talked to Ellen a few times many years ago. She is nice woman. The headline on her article is just her being nice. The article should have been entitled, “Bank’s Mortgage Life Insurance Has Deal Breaker Flaws. Pay Attention!”
Here are the obvious flaws:
Insurance that may not be there when you need it is incredibly dangerous for important issues like paying off the mortgage on the family home. The bank offered coverage has other very negative contractual characteristics, plus its price is substantially more. Altogether this form of life insurance is a non-starter for anyone with reasonable financial awareness.
Control your own insurance. It might not matter, but if it ever does, it will matter a lot.
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Don Shaughnessy is a retired partner in an international public accounting firm and is presently with The Protectors Group, a large personal insurance, employee benefits and investment agency in Peterborough Ontario. Contact: firstname.lastname@example.org