Mortgage financing is probably one of the largest financial commitments you will make in your life - whether it is a B&B or your home. Safeguarding that commitment from the curves life may put in your path, means having the right kind of risk protection. All too often people assume this critical protection has to come from their lending institution. Before you say yes to lender provided mortgage insurance, consider the options. Protecting your mortgage with a personal insurance plan can offer you and your loved ones better guarantees, greater choice and more flexibility—and in most cases at a lower cost.
Lender insurance plan:
- Lender is the owner and beneficiary of the policy.
- Pays benefit to lender.
- Coverage expires when mortgage is paid off.
- Pays out only the amount owing on the mortgage at time of claim. Total value of coverage decreases with mortgage balance.
- Premiums can be adjusted by lender at any time.
- Lender can change or cancel policy at any time.
- Policy cannot be moved to new mortgage, a renewal or a new lender.
- Your premium is based on your age band and minimal health information.
- No personal consultation provided with policy
Personal insurance plan:
- You own the policy and designate the beneficiary.
- Pays benefit to your designated beneficiary
- Pays the total value of insurance plan you purchased. Total value of coverage remains stable for the life of the plan.
- Coverage continues after mortgage is paid.
- Premiums are guaranteed for the life of the plan.
- Only you can cancel or make changes to your plan.
- Plan goes with you from one home to another—one mortgage to the next.
- Your premium is based on your age, health and smoking status.
- Plan designed by personal Consultant offering expertise and personalized service.
Certainly food for thought if you need a mortgage when buying your bed and breakfast property! We talk about many items that impact on the success of being a bed and breakfast owner in my course Learn How Much Your Future B&B Can Earn. This course takes you through all the steps required to determine if your new B&B can bring you the income and personal fulfillment you are seeking.
To find out more about Barb Kerr, please visit barbkerr.ca