Estimated reading time: 45 seconds

CBC Marketplace has warned consumers again about Canadian banks offering imperfect advice and unfriendly insurance products.

They went undercover seeking financial advice from the country's top 5 banks and financial institutions….and….spoiler alert….the results are scary.

Read the story here, and watch the video here.

An earlier CBC investigation revealed why Canadian consumers should avoid buying  mortgage insurance from the bank. Read this.

Despite all of the above, those very same Canadian banks sell more ‘creditor insurance’ (mortgage insurance) than ALL the tier one insurance companies combined!

They achieve stellar sales volumes with a network of well-placed, poorly trained, often unlicensed salespeople.

How, you may wonder, can they be so successful?

Easy: they ask 2 simple questions of their excited mortgage borrower at the time of signing mortgage loan documents.

1. Do you want your mortgage paid if you get sick?
2. Do you want your mortgage paid off if you die?

Who would say NO to that?

It turns out that banks are great at signing people up for mortgage insurance but problems occur when claims are made.

As explained in the CBC report, the banks do their underwriting post-claim, leaving many families in financial ruin.

Here are 5 more reasons for consumers to avoid bank mortgage insurance:

1. Higher Cost - coverage from the bank is usually more expensive than traditional life insurance.
2. No Portability - coverage ends when you move or sell your home.
3. Sales tax - bank mortgage insurance usually costs more AND is subject to Provincial Sales Tax. There is no sales tax on life insurance.
4. It benefits the bank only. Bank mortgage insurance typically pays the balance of the mortgage outstanding only to the bank. With life insurance there’s something left for your family and loved ones who may not want to pay off the mortgage and only continue mortgage payments.
5. Coverage decreases with bank mortgage insurance but the cost of premiums remains fixed. The effective cost of coverage actually increases every month because the bank product covers only the mortgage balance outstanding at death. A life insurance  payout remains fixed throughout the term.

Buying insurance with the help of an experienced financial advisor doesn't cost a penny more, will actually save you money and deliver real protection with the peace of mind that you deserve.

It’s time for an intervention - stop paying too much for inferior coverage and get a no-obligation second opinion on your current situation.

Need help?  Get in touch with us now and let’s get started. Call me toll-free at 1-866-566-2001 or send an email to info@illnessPROTECTION.com

I look forward to helping you and your family.

Stay healthy