Are you clients properly protected? – Another example of the pitfalls with bank issued Mortgage Life Insurance.
” Brokers should warn clients of the potential pitfalls of mortgage life insurance, following one big bank’s negative press surrounding a claim denial.
Recently deceased Christopher Massa, whose mortgage and mortgage life insurance was with Scotiabank was diagnosed with lung cancer in October. The bank denied the claim on his $289,000 mortgage, according to the Toronto Star….
According to Scotiabank’s website, approval for their bundled life insurance is a simple yes or no question.
“Approval is based on answering one health question. If you answer ‘No’ to this question and your mortgage is $500,000 or less you are approved,” the bank’s website reads. “Answering ‘Yes’ to this question does not necessarily mean you won't be approved; it simply means the insurer will contact you for more information.”
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Ryan McLellan, Financial Advisor
Edward Jones Barrhaven