BMO Creditor Insurance (Mortgage) Creditor Insurance Reviews

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BMO Creditor Insurance (Mortgage)
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Creditor Insurance Watchdogs Review

by Matthew Inglis on Jan 16, 2022
1.3 out of 5 stars

BMO Mortgage Creditor Insurance certificate offers BMO Mortgage holders the following coverage:

  • Creditor life Insurance: max coverage of $600,000
  • Creditor Critical Illness Insurance: max coverage of $450,000
  • Creditor Disability Insurance: max coverage of $3,000 per month If your mortgage obligations are higher than these limits, your creditor insurance coverage may not fully cover your mortgage obligations in the event of death, critical illness, or disability.

Product CON’s:

  1. Rate Blending: In most cases males/females, smoker/non-smokers all pay the same premium for the same coverage. This means BMO will charge a 40-year-old female non-smoker the same creditor insurance premium as a 40 male smoker to insure the exact same amounts of coverage. This is an extremely unfair pricing practice for Canadian consumers. Creditor disability insurance takes this unfairness one step further by blending occupational risk. This means that a lawyer who sits behind a desk all day pays the same disability rates as a roughneck on a drilling rig despite how drastically different the risks in their occupations are.
  2. Pricing: You will pay anywhere between 100% to 500% more for creditor insurance coverage from this lending institution than you would if you were to purchase these products from a licensed life & health insurance advisor.
  3. Underwriting: Creditor insurance applications usually come with 3 or 4 eligibility questions and these questions are asked by individuals who are not life licensed individuals. If they are answered incorrectly, it can cause serious issues when it comes time to make a claim on your creditor life, critical illness, or disability insurance coverage.

Matthew InglisReview Authour: Matthew Inglis, Life and Accident & Sickness Licensed Advisor, Founder of a Creditor Insurance Watchdogs
Knowledge: Matthew's career in the insurance industry started in 2007, with one of the larger financial institutions in Canada. He is on a mission to educate Canadians about deficiencies of Credit Insurance products while showing potential alternatives. One of his passions for insurance advising revolves around advanced taxation and estate planning with insurance products.
Publications: He is a respected contributor to Canadian media publications e.g. CTV News' article "Are You Paying for Credit Card Balance Insurance You Don't Need?"
Provinces served: AB, BC, ON, SK, ...
Years of experience: Nearly 15 years

Interested to talk to Matthew? CONTACT MATTHEW HERE >.

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