Comments on: Putting Mortgage Insurance In The Penalty Box http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/ A Vancouverite's journey to financial freedom. Tue, 06 Jan 2009 20:22:21 +0000 http://wordpress.org/?v=2.1.2 By: MillionDollarJourney.com http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-291 MillionDollarJourney.com Tue, 12 Jun 2007 09:55:34 +0000 http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-291 FJ, what are your thoughts on "Joint-First to Die Policies"? Is it better for a couple to go with that, or go with 2 individual term policies? FJ, what are your thoughts on “Joint-First to Die Policies”? Is it better for a couple to go with that, or go with 2 individual term policies?

]]> By: FourPillars http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-292 FourPillars Tue, 12 Jun 2007 12:02:17 +0000 http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-292 I remember looking at mortgage insurance with TD and the fee was based on the current amount of the mortgage not the initial mortgage. I'm sure it was still a ripoff but at least it got cheaper as you paid the balance down. Mike p.s. - any chance you could add a 'comments' feed to your blog?? I remember looking at mortgage insurance with TD and the fee was based on the current amount of the mortgage not the initial mortgage. I’m sure it was still a ripoff but at least it got cheaper as you paid the balance down.

Mike

p.s. - any chance you could add a ‘comments’ feed to your blog??

]]> By: Financial Jungle Guy http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-293 Financial Jungle Guy Tue, 12 Jun 2007 16:31:29 +0000 http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-293 Hi MDJ, I didn’t have an opinion on “Joint-First to Die Policies” (JFTD) until 10 minutes ago. :D Being the skeptical type, my first instinct is “this must be a rip off,” but after working out some scenarios, I think it’s not so bad. Since JFTD is 15% cheaper than 2 single policies, you can top it up to 100% to increase the coverage for the same premium as 2 single policies. Sure, JFTD terminates after the first claim, but the second person can write down in his/her will to transfer both the claim AND net worth over to the legal guardian of the child. If the (inflated) claim is enough for the survivor, surely it’s enough for the legal guardian especially if you include your net worth. FourPillars – I didn’t know about TD’s offering. Also, I’ll look into adding the comments feed. Thanks for the tips. FJ Hi MDJ,

I didn’t have an opinion on “Joint-First to Die Policies” (JFTD) until 10 minutes ago. :D Being the skeptical type, my first instinct is “this must be a rip off,” but after working out some scenarios, I think it’s not so bad.

Since JFTD is 15% cheaper than 2 single policies, you can top it up to 100% to increase the coverage for the same premium as 2 single policies. Sure, JFTD terminates after the first claim, but the second person can write down in his/her will to transfer both the claim AND net worth over to the legal guardian of the child. If the (inflated) claim is enough for the survivor, surely it’s enough for the legal guardian especially if you include your net worth.

FourPillars – I didn’t know about TD’s offering. Also, I’ll look into adding the comments feed. Thanks for the tips.

FJ

]]> By: MillionDollarJourney.com http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-294 MillionDollarJourney.com Tue, 12 Jun 2007 18:12:17 +0000 http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-294 When I got my first mortgage, I got the bank mortgage insurance insurance (CIBC) b/c it was dirt cheap ($12/mo) and I knew that I'd be getting a new mortgage within the 5 years (very little pay down). In my opinion about insurance, it's all about making sure that your dependents are covered in the case that one spouse passes and some cash flow dries up. So JFTD might be a viable solution for most couples. The exception being is that if you have a divorce, the beneficiary is still the spouse. So perhaps 2 separate polices does have it's merits. When I got my first mortgage, I got the bank mortgage insurance insurance (CIBC) b/c it was dirt cheap ($12/mo) and I knew that I’d be getting a new mortgage within the 5 years (very little pay down).

In my opinion about insurance, it’s all about making sure that your dependents are covered in the case that one spouse passes and some cash flow dries up. So JFTD might be a viable solution for most couples. The exception being is that if you have a divorce, the beneficiary is still the spouse. So perhaps 2 separate polices does have it’s merits.

]]> By: Financial Jungle Guy http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-295 Financial Jungle Guy Tue, 12 Jun 2007 18:24:18 +0000 http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-295 Since a life policy is to protect the dependants instead than the marriage, I'd consider leaving the ex-spouse as the named beneficiary, if I intend to contribute my share of the child support. Since a life policy is to protect the dependants instead than the marriage, I’d consider leaving the ex-spouse as the named beneficiary, if I intend to contribute my share of the child support.

]]> By: The Financial Blogger http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-297 The Financial Blogger Tue, 12 Jun 2007 23:32:33 +0000 http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-297 I personally think that any kind of life insurance is better off than mortgage life policy! I canceled all my life insurances related to my debt to contract a huge JFTD that will meet all my spouse or my personal need if anything happens. What also I like about it, is that if both of you and yous spouse die within 45 days, your beneficiary will get twice the amount of the policy. That surely makes daddy and mommy sleep at night! Cheers, FB. I personally think that any kind of life insurance is better off than mortgage life policy! I canceled all my life insurances related to my debt to contract a huge JFTD that will meet all my spouse or my personal need if anything happens.

What also I like about it, is that if both of you and yous spouse die within 45 days, your beneficiary will get twice the amount of the policy.

That surely makes daddy and mommy sleep at night!
Cheers,
FB.

]]> By: Carin http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-700 Carin Mon, 19 Nov 2007 20:06:28 +0000 http://financialjungle.com/2007/06/12/insurance/putting-mortgage-insurance-in-the-penalty-box/#comment-700 Term life insurance allows you as the policy holder to name your beneficiary; the bank names themselves. Should something happen, this gives your beneficiary complete control over that money. The bank will simply pay themselves. Bank mortgage insurance has the best interests of the bank; term life has yours. Term life insurance allows you as the policy holder to name your beneficiary; the bank names themselves. Should something happen, this gives your beneficiary complete control over that money. The bank will simply pay themselves. Bank mortgage insurance has the best interests of the bank; term life has yours.

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