WHAT ARE THE BENEFITS OF PERSONALLY-OWNED PROTECTION COMPARED WITH BANK-OWNED PROTECTION?

You have the right to know!

INSURANCE AMOUNT
Bank Mortgage Insurance: You can purchase only an amount to cover your mortgage in the event of death.
Personal Mortgage Insurance: You can purchase more than an amount to cover your mortgage if you desire. 

TERM OF COVERAGE
Bank Mortgage Insurance: You have protection only while your mortgage is with a particular institution. If you re-finance and move the mortgage, you must purchase new coverage.
Personal Mortgage Insurance: A personal contract is based on your life and you have the protection regardless what institution holds the mortgage. 

COST OF COVERAGE
Bank Mortgage Insurance: Cost remains level as coverage decreases to keep in line with mortgage balance. Any renewal premium is never guaranteed!
Personal Mortgage Insurance: Option exists to have level or decreasing coverage. A single, low premium rate can be locked in at the beginning of the mortgage for the life of the mortgage. DOLLAR FOR DOLLAR, PERSONAL COVERAGE IS LESS EXPENSIVE!

YOUR BENEFICIARY
Bank Mortgage Insurance: The borrower must pay the premium for the insurance which automatically names the bank as beneficiary.
Personal Mortgage Insurance: The borrower pays the premium for a contract which can have ANY PERSON named as beneficiary. The beneficiary has total control of the funds and determines how and when the mortgage is eventually paid. 

HIDDEN COSTS
Bank Mortgage Insurance: With the bank named as automatic beneficiary, the mortgage is immediately eliminated. If the insured did not die on the date of renewal, there could be an additional penalty to pay off the mortgage for the amount of the greater of 3 months of interest or a market value calculation (involving the difference between the locked-in mortgage rate and the current rate at time of mortgage elimination). This can be a substantial penalty!
Personal Mortgage Insurance: The named beneficiary has total control of the insurance proceeds and determines the best time to eliminate the mortgage. If the mortgage is locked-in at a low rate and there are investments available for higher rates of return, the beneficiary would have the freedom to choose.

FACE AMOUNT CHANGE
Bank Mortgage Insurance: Coverage always equals the amount of the outstanding balance in the mortgage.
Personal Mortgage Insurance: Coverage can be made level from the beginning or can equal the amount of the outstanding mortgage. Coverage can also be inflation-proofed.

CONVERSION PRIVILEGES
Bank Mortgage Insurance: Not available.
Personal Mortgage Insurance: You can convert term coverage to permanent coverage.

GUARANTEED INSURABILITY
Bank Mortgage Insurance: Not available
Personal Mortgage Insurance: You have the option to guarantee your right to purchase additional insurance without having to answer any health questions.

DISABILITY BENEFIT
Bank Mortgage Insurance: If you are disabled, your loan payment will be waived.
Personal Mortgage Insurance: If you are disabled, your loan payment will be waived. You may also choose to receive additional disability compensation over and above the amount needed to pay the loan.

TAX SHELTERING
Bank Mortgage Insurance: No options available.
Personal Mortgage Insurance: You have the option in some plans to pre-pay your premiums and effectively have your premiums paid with pre-tax dollars.

THE MAIN BENEFITS OF PERSONALLY-OWNED PROTECTION!

• YOU HAVE TOTAL CONTROL OF THE INSURANCE CONTRACT!
• YOU HAVE TOTAL CHOICE OF YOUR INSURANCE COVERAGE!
• YOU CAN EFFECTIVELY CONTROL YOUR INSURANCE COSTS!
• YOU HAVE TOTAL CHOICE OF YOUR INSURANCE BENEFICIARY!
• THERE ARE NO HIDDEN COSTS!