The process is typically quick and easy to purchase creditor’s insurance. Care to guess why? You’re missing a medical questionnaire! A medical questionnaire helps determine if you are eligible for coverage BEFORE you start paying any premiums.

You get typecast in a general age group because the bank or lender institution doesn’t typically complete a medical history review. In other words, you can pay a higher premium for generalizing others as moderately healthy.

The financial institution’s staff are often not licensed life insurance advisors, which often leads to a lack of understanding of your insurance. Not knowing can be scary when you are at a point where you need to use it, and you’re not sure how it works.

Creditor insurance policies are designed to protect the lender, so they are the primary beneficiary. If you decide to re-mortgage and change your lender, you can’t take your insurance with you. You’ll have to cancel and start a new policy.

Post-claim underwriting means the insurance company reviews your medical history and eligibility after you make a claim, not when you apply for coverage. This creates a risk that your claim could be denied based on information you weren’t asked about when you purchased the policy, leaving your loved ones without the expected financial protection.

Yes, you can switch from a mortgage to term life insurance anytime. It’s best to apply for the new term life policy first and get approved before cancelling your existing mortgage insurance to avoid any gap in coverage. Our licensed advisors can help guide you through this transition smoothly.

The amount of life insurance you need depends on various factors, including your outstanding debts, income replacement needs for your family, future education costs for children, and final expenses. A common rule of thumb is 10-15 times your annual income, but our licensed advisors can help you calculate a more precise amount based on your specific situation. Visit our life insurance page to learn more.