Should I Get Mortgage Insurance in Edmonton, Alberta? Jan 30 2011

When it comes to accepted or rejecting any insurance premium, be sure to do your due diligence as you would with anything. Some factors to consider in the process are the following…
1. Talk to a financial planner. (If you don’t have one, I can refer you to some. Always shop around, and see which one has the best product(s) for you)
2. Compare the various products. For example: Would you be better off to buy a universal life policy instead of mortgage insurance?
A universal life policy grows as an investment over time becoming higher in value. Majority of all mortgage insurance payout value declines over time as you pay down your mortgage. The premium for the mortgage insurance always stays the same, but the value declines over time as you pay down the mortgage. When you sell your property or pay off the mortgage, your mortgage insurance expires.
3. Do a cash-flow and ROI (return on investment) analysis. What is your plan with the property? How long are you going to stay in it. What investments do I need to make to ensure the future financial security of my family.
4. What are the options for beneficiaries for the insurance policy?
In the end, always make an informed decision. Talk to professionals in the industry including Financial Planners, and Mortgage Brokers.

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