Mortgage Versus Term Insurance

MORTGAGE INSURANCE – BORROWER BEWARE: When you negotiate your mortgage, you may be offered a mortgage insurance policy that pays your outstanding principle in the event of death. Before you say “yes”, be aware that these policies typically offer far less value than the life insurance alternatives available to you. Here are some typical issues to keep in mind:

COST: Most mortgage insurance policies offer premiums that stay level, or increase at each renewal. However, as you pay down your principal, the protection declines, thus increasing your cost per $1000 of benefit.

COVERAGE CAN BE CANCELLED: A typical mortgage life insurance policy renews when you renew your mortgage. If your health changes, you may be deemed uninsurable and lose your coverage.

LACK OF CONTROL: Mortgage insurance pays the lender in the event of death. However, what if your beneficiary has a different need for the money?

YOU CANNOT KEEP YOUR INSURANCE IF YOU CHANGE LENDERS: If you move to a different lender to take advantage of a lower interest rate, you can’t take your mortgage insurance with you. You have to re-apply at an older more expensive age bracket and risk being declined for health reasons.

PERSONALLY OWNED LIFE INSURANCE AS AN ALTERNATIVE TO MORTGAGE INSURANCE: Personally owned life insurance offers several important advantages over a typical mortgage insurance policy.

• You decide how to spend the proceeds
• You keep the coverage regardless of moves to new lenders
• Your premium cost is often much lower
• You will not lose coverage if your health changes

The Canadian Bar Insurance Association (CBIA) offers personally owned mortgage protection life insurance options that blend superior design with low prices. Visit www.barinsurance.com or call Mass Financial at 604-688-8790 / 1-888-477-5630.

Book Your Hotels Online

Check out MeetingMax at www.cba.org/bc under accommodation (Member Savings) and compare hotels all over B.C. and book them online. MeetingMax has proven to be a great addition to Member Services and we encourage members to go online and get the best deal possible.

Automobile Leasing and Sales

Afrique Enterprises and Carter Auto Group join ProGroup as the latest automobile leasing and sales suppliers. We encourage members to call and compare to get the best rates possible.

Afrique Enterprises, 604-540-2277
Carter Auto Group, Brian Wishart 604-291-2266, or 1-877-311-2260
ProGroup Auto Leasing and Sales 604-270-4466 www.progroupbc.ca

Spring Training

CBABC is set for spring and is excited to see the return of the local sporting teams. The Vancouver Canadians, the Whitecaps, and the B.C. Lions have been training and are ready to take us through this year’s season. CBABC is happy to provide its members with a 10-20 per cent discount as well as other promotions throughout the 2006 season. Please call Josey Schaefer at 604-687-3404 x500 for ticket information.

Spring Skiing

CBABC introduced Big White and Silver Star to its “Mountain of Savings” this year, and is happy to continue to offer discount dual mountain lift tickets. As well, we still have tickets available for Whistler Blackcomb and Mt. Washington. Ticket order form is available online at www.cba.org/bc under Member Savings (Membership).

CBABC Home and Hospitality Exchange Registry

CBABC would like to introduce the Home Exchange Program. This program is perfect for the out-of-town wedding, graduation, conference, or for just getting away; the Registry offers a no-cost alternative to pricey hotels. The easy-to-use Registry makes family vacations, senior/retired vacations, and work-related home and hospitality exchanges both attractive and affordable. Home exchangers live like locals, not tourists, shopping in neighborhood markets and cafes. This is a free home exchange, not a rental. For more information go to www.cba.org/bc or call Josey Schaefer at 604-687-3404 x500.

These articles were published in the April 2006 issue of BarTalk and are subject to the copyright by the British Columbia Branch of the Canadian Bar Association, 2006, all rights reserved.