7 reasons you should not be caught dead with mortgage insurance from the bank of life

You just bought a house and the bank approved a loan. Now the bank is trying to sell their insurance on the life of the loan. Are you excited about your new home and want to protect your family if something happens to you when you buy an insurance policy we thought a good deal. Not necessarily. Bank mortgage insurance, commonly known as creditor insurance is the fine print, that the owners pay ever read, but if you have done and compared to other insurance plans, they will find a big difference, and have a lot of their hard-earned money is lost. Most people are too busy to check their coverage and will probably never read what they have purchased. After verification and research missions of the lending bank insurance, here are seven reasons why you should avoid creditor bank insurance products.
Reason # 1-Your insurance decreases each year, but the cost remains the same.The amount of insurance coverage available to a lender, the balance of loans is limited. Paid their insurance coverage decreases with each mortgage payment, but the cost remains the same.

Reason # 2-The bank is the beneficiary of your policy, not your family. In other words, you can choose the beneficiary for insurance products. Because the bank will lend you money for your home, are automatically the beneficiary of the proceeds will be within an insurance group of creditors. Unlike long-term policies of life insurance owned by individuals, not families to cover the insurance on the death of any requirements other than mortgages.

Reason # 3-Your insurance rates are not fully guaranteed in the contract. Your bank may change the frequency at any time. With creditor insurance premiums at the group level that your frequency can be increased at any time, if the experience of this group is unfavorable means paid. In other words, if the bank does not have enough money on the product have increased their prices.

Reason # 4-Smoking non-Smoking pay prices. Most mortgage insurance through the bank where the age to determine the cost of insurance. There are better prices for preferred health risks. If you are healthy and not smoking, will be ready, insurance premiums, pay someone with poor health and smoking.

Reason # 5-If you change banks for better rates, you lose your insurance. Mortgage insurance does not allow portability, which means that you can not take insurance if you switch lenders. You need to upgrade and the second of a new roof with the cost of your new age. Not only do you pay more for coverage because of your age is increased, but if your health has changed, you can not even be caught, he needs you and your family so that your family in a precarious position. This is all the money you paid the insurance of the bank never disappeared, never to return.

Reason # 6-ill-advised, most of the bank's employees are not licensed insurance consultant. Most if not all service employees with banks, insurance advisors are not licensed and therefore not able to provide professional advice to the insurance needs of your family.

Reason # 7 Your bank may cancel your policy at any time! That is correct. Most if not all credit insurance is a contract in one direction. Because the bank owns and holds the contract with the insurance company, which controls all aspects of the plan. When to take at any time and for any reason the bank chooses the product from the shelf, then they have the right to do so. Your insurance is gone and the money spent is lost and can not be recovered. Of course, a representative said that the bank, I do not think has ever happened. But I read the contracts are quite clear that this option available to the bank and there is nothing you can do.