Mortgage Insurance:

News from 2014

Mortgage Insurance Pitfalls

If you're an avid reader of the LSM Insurance blog, you know we're not fans of Mortgage Insurance and neither, it turns out, is the Toronto Star's personal finance columnist, Ellen Roseman. In a recent article titled "Mortgage Insurance Policies May Not Cover Claims," she highlighted the danger of post-claim underwriting. This is when the policyholder has filled out their application and has been diligently paying their monthly premiums, but when they die suddenly, their family discovers ...
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Are Homeowners Properly Insuring Their Increasing Debt Loads?

These days, it seems like debt is the norm. Instead of it being the "elephant in the room," it's all everyone talks about ─ the bragging rights one obtains from taking out a loan to buy a luxury car, or funding a vacation trip entirely on credit. According to a survey by Manulife Bank of Canada, homeowners are more comfortable with both holding and talking about their debt than their parents were. "Recently I've noticed people are happy to talk about their debt as if it's an achievement, ...
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The Top 5 Life Insurance Loopholes with Ellen Roseman

Ellen Roseman gives us the lowdown on five life insurance loopholes. Life insurance is a difficult concept to wrap one's head around. But even when you think you have more than a basic understanding, insurance contracts are embedded with many loopholes and restrictions that often trip up consumers. As the personal finance columnist for the Toronto Star, Ellen Roseman has written about every one of them, so we invited her to take us through them all and share her candid advice on how to ...
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Top 5 Life Insurance Mistakes

Life insurance is always a tough sell: an invisible product that the policyholder will never actually benefit from directly, and yet they still have to pay for it every month. But if you don't have it, you won't be able to make sure your family maintains the lifestyle they've become accustomed to or replace your income when you pass away. Although, just because you have life insurance, doesn't mean it's necessarily working for you in the right way. Since life insurance is such a complex ...
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What Canada’s Financial Experts Say About Mortgage Insurance

We've investigated and advised against mortgage insurance for years here at LSM Insurance, and it mostly comes down to one dastardly component of how it works — post-claim underwriting. Mortgage insurance is typically sold by banks when you get your mortgage as a means to pay off your mortgage when you pass away. However, the approval for the policy is done after you've already been paying the premiums, and often, people are denied coverage at the time they need it because the ...
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An Insurance Horror Story: The Suicide Clause

Christine McCarthy was victimized by an abusive husband for years, and now, thanks to his choice to commit suicide, she's being victimized all over again by her insurance company. Her husband's name was Charlie* and he was an abusive alcoholic. The night before his death in April 2003, he had already been arrested for assault on Christine and was out on bail with a restraining order not to come within 30 feet of Christine or her children. "The night he was arrested for the second or the ...
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