Archives for January 15, 2019
Mortgage Insurance vs Life Insurance
You picked a house that was the perfect match for your needs. Selecting insurance for your home should be no different.
When it comes to home insurance there are two types. One that covers the lender and one that covers you. Here’s the difference:
Mortgage insurance pays the balance of your mortgage to the bank if one of the people listed on the mortgage passes away. The loan will be completely paid off so this liability is not left to your family. This option is readily available and conveniently added to your regular mortgage payment. You are most often approved for this insurance by filling out a simple questionnaire, which includes basic health questions.
This convenience comes at a cost. The most important thing to remember is that, even though you are paying the premiums, you are not necessarily guaranteed you will be covered in the event of a claim. These types of policies use post-claim underwriting. If you have a health condition, whether you are aware of it or not, at the time of signing papers and it is not disclosed, your claim will most likely be denied.
Term Life Insurance
Term Life insurance typically requires a more detailed screening process, which can include blood and urine samples and information from your doctor. Depending on age, gender, smoking status and overall health, premiums can vary when compared to mortgage insurance, however generally it tends to be more affordable.
Once your coverage has been confirmed, you own the policy and can name whoever you choose as the beneficiary. Only you can cancel or make changes to the policy, as long as you keep up premiums. Your coverage does not decrease. Your coverage will remain in force even after the mortgage is paid off.
Term insurance is portable, it is attached to you rather than your debt. You can also personalise your coverage by selecting from various available options.
Most Canadians renew their mortgage every 5-10 years depending on term. You will need to renew your mortgage insurance at this time and may have to pay higher premiums.
Mortgage insurance benefits only pay the outstanding amount owing on your mortgage which declines as you pay down your debt. Only the lender can receive the benefit from the insurance.
Term life insurance is insurance for a specified time, for example 10, 15 or 20 years. The benefit does not decrease over the term. Your family can decide what to do with the payout. In today’s world there are many financial obligations to consider and having the flexibility to choose offers peace of mind.
This column is written by Michelle Weisheit CFP, IG Wealth Management and presents general information only and is not a solicitation to buy or sell any investments. Please contact your own advisor for specific advice about your situation.
A wonderful shot of Riverside Place (highrise condo) on the foot of McKinney Rd – I had thought at the time the “lights are on and no one home” BUT
Checked with Town of Oliver building inspector Wayde Bliss* this morning – both the top floor and the 3rd floor approved for occupancy with a scheduled visit today to look at
the 2nd floor.
The development is 30 units in total with underground parking. Bliss could not confirm the # of suites with permits and those without.
Best of luck – I am sure the neighbours will be pleased – some of them have waited almost 30 years to see completion of the project.
Without getting to a larger story the Oliver Landing Project of 12 units started a number of years ago at the corner of Co-op Avenue and Sawmill Rd has sold 4 units with occupancy permits granted.
Various sub-contractors continue to work slowly to finish the remaining 8 housing units.
NOTICE of Assent Needed for the Reconstruction of the Town’s Sewer Main Lift Station
Pursuant to the Community Charter, the Council of the Town of Osoyoos is proposing to seek the assent of the electors in the Town of Osoyoos by means of Alternative Approval Process (APP). The question before the electors is whether they are opposed to the borrowing of $3,500,000 for the re-construction of the Sewer Main Lift Station on Kingfisher & 89 Street for a 20 year period.
The total cost of the Reconstruction of the Sewer Main Lift Station is $5,989,000, the construction portion is $5,136,000, which includes a 10% contingency allowance, the balance of the funding is secured with Sewer Reserve and Operating Funds.
Estimated cost to average single family resident:
•The Town will use existing sewer revenues and funding from Okanagan Basin Water Board to pay for the debt servicing. No additional charges will be levied.
•If you are opposed to Loan Authorization Bylaw 1347, 2018 you can sign an Elector Response form.
•Elector Response forms are available at the Town office at 8707 Main Street, Osoyoos, B.C., V0H 1V0.
•A person who receives an Elector Response form shall only make accurate copies of the form.
•Each Elector Response form or accurate copy of an Elector Response form may be signed by one or more electors.