Mortgage Insurance: Why you should choose LSM Insurance

Posted on November 12, 2010 and updated December 12, 2018 in Insurance Types, Life Insurance Canada News, Term Insurance 4 min
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When Charlotte Hutcheson had children, like most parents, her priorities instantly changed:

We naturally went into “protective” mode and everything we lived and breathed beyond that point was in consideration of our girls first. The “what if’s” began to enter our minds…. “What if one of us becomes ill or dies?” We could not begin to completely enjoy this journey with our daughters without the security of knowing that in the event of a tragic accident or sudden illness, the remaining parent would be taken care of, and be able to focus on being a supportive parent.

Upon re-evaluating her family’s mortgage insurance coverage, she realized that her and her husband had been putting their hard earned money into something that wasn’t necessarily going to protect them in their hour of need. She was a victim of post-claim underwriting.

Chantal Marr
Chantal Marr
President of LSM Insurance

Creditor insurance is one of the most profitable products in a bank’s line-up. Often sold using high-pressure tactics, many borrowers are backed into a corner and feel like they have to make the purchase or else lose their existing loan.

What many don’t know is this form of coercive selling is illegal. A company is not allowed to provide a product or service on the condition that their customer purchase an additional product from the same, or a related company.

Some banks also engage in Post-Claim Underwriting, meaning they don’t check your medical history, they just ask you a few medical questions and decide whether you qualify. It’s at the time when a claim is filed that things start to unravel because it’s not until after the insured dies that the banks finally begin phoning around to doctors and checking into their medical history. If they find any discrepancies, the beneficiary may be out of luck and the bank may decide the insured should’ve never qualified for coverage in the first place.

Finding this out, Charlotte turned to the experts at LSM Insurance and their team of qualified brokers. 

Buying from a qualified broker like those at LSM saves you the roll of the dice that comes with the slimy practice of Post-Claim Underwriting, since indvidual life, disability and critical illness insurance plans do their underwriting at the time of application.

Paired with Jack Bendahan — one of the standout brokers on the LSM Insurance team — the Hutcheson’s were able to find the right plan for them, even though the process seemed daunting at first.

When all of the options are laid out in front of you and explained in plain language, you instantly begin to see the value in being proactive and realistic. My husband Mark and I were both a bit apprehensive and intimidated by the process of choosing the right plan for us because we’ve made mistakes in the past but it really comes down to finding the right person to help you make that decision.

LSM Insurance can do the same for you, making available a myriad of benefits not available when buying through the banks:

  • Level coverage
  • Portability
  • Customization with the length of your plan through either a term or permanent option.
  • You choose the beneficiary, the bank doesn’t.
  • Many plans have a return-of-premium feature if a claim is not made.

If that weren’t enough, bank plans are normally 30-40% more expensive than individual plans. You can get a free quote, and compare for yourself, using our Term Life Instant Quote Page.

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Fiona R
Fiona R

Can I get mortgage insurance if I’m 71?

LSM Insurance
LSM Insurance

Most mortgage insurance plans through the banks cut off at 69. But you can qualify for an individual life insurance plan to cover your mortgage if your 71. We will send you a separate email now.

LSM Insurance
LSM Insurance

Canada Protection Plan has a simplified issue Term plan underwritten by Unity Life that may be a good fit.

We’ll send you an email shortly. Regards,

lyle
lyle

Due to my medical history, I have been declined on 2 occassions for additional life insurance. My wife and I will be taking a large mortgage next year sometime. The amount of the mortgage will be $250,000. I am only inquiring to see if there is any chance of me getting more coverage at that time. I had a successful triple bypass in March of 2007. Manulife and Empire Life told me that I couldn’t apply again for 7 years. Is this true? Let me know. Thanks, Lyle McClung

LSM Insurance
LSM Insurance

Thanks for the note. We’ll be in touch soon with a quote.

Rodolfo Seriosa
Rodolfo Seriosa

How much it cost to have a 25,000.00 and a 50,000.00 policy for life term at age 70years old
male? Give me a cote. If not to expensive I might
be interisted. Thanks.