Tag Archive: dads

Burlington Dads – Mortgage Life Insurance vs. Traditional Life Insurance

Hello my fellow Burlington Dads!

Recently, there has been some media coverage about life insurance offered through major Canadian banks (click to see Globe & Mail Article).  I thought that I would provide a bit of insight on the subject to make sure our Burlington Dad’s better understand the products offered from banks.  If you prefer to watch a CBC Marketplace video, click here.

Did you know?:

  1. “The Bank Act” is very clear about Canadian banks not being able to sell insurance products.  To get around these rules, banks are allowed to offer ‘creditor insurance’ against loans given by the bank.  Creditor insurance is the most profitable product a bank has to offer
  2. Creditor insurance is often far more expensive than private insurance (I have an example below using Scotiabanks posted rates)
  3. Creditor insurance premiums increase every 5 years (see below)
  4. The beneficiary of creditor insurance is the bank (not your family)
  5. The amount of coverage reduces (as your mortgage reduces) — in other words, the product gets more expensive as you age, but the amount of coverage reduces
  6. Medical underwriting is completed post-mortem (ie. after you’re dead).  Therefore, the benefit may not be payable because of poor health (even though you’ve paid premiums for years)

Private life insurance coverage you purchase through a broker/advisor has guaranteed costs (10, 20 or 30 years).  The coverage never reduces.  The beneficiary is your family (not the bank).  Also, since medical underwriting is required up-front, 99.8% of all claims are paid.

How do I know if I have creditor insurance?

Each lender/bank has their own online services.  At Scotiabank, when you login to your online banking, it clearly shows if you are insured and the costs for life, critical illness and disability.  See a screenshot below:

 

 

 

 

 

 

 

 

 

 

How much does creditor insurance cost?  How does it compare to privately owned insurance?

I googled “Mortgage Insurance rates” and was sent to this link.  Below is a screenshot from that page:

Life Insurance Example:  Assume a mortgage of $500,000

  • Age 35: $750/yr vs. 10 Year Term $255/yr
  • Age 40: $1,100/yr vs. 10 Year Term $350/yr
  • Age 45: $1,650/yr vs.  10 Year Term $535/yr
  • Age 50: $2,200/yr vs. 10 Year Term $766/yr
  • Age 55: $2,750/yr vs. 10 Year Term $1,300/yr
  • Age 60: $3,700/yr vs. 10 Year Term $2,231/yr
  • Age 65: $5,450/yr vs. 10 Year Term $3,957/yr

Protecting your family is what’s most important.  Replacing your mortgage insurance with private coverage is an absolute no-brainer for everybody.

Brian Laundry

Direct Line: 1-(289) 644-2345
Cell Phone: 1-(905) 330-2366 (text to this number)

 

 

Burlington Dads – Business Owner Directory

Trades & Services (Plumbers, Carpenters, HVAC, Hot Tubs, Pools, Construction, etc.)

HVAC

  • Adam Travis – HVAC Services
  • Brian Mayor – HVAC Services
  • Matt  Youngblut – www.myhvacguy.ca
  • Sean Fabien – Halton Air Experts, Heating & Air Conditioning (289-218-8504)

Electricians

  • Mike Serravalle – Can Power Electric — Electrical Contractor
  • Sukhdeep Jakhar – Electrical Contractor (www.905electric.ca)
  • Mike Soder – Soder Electric Inc
  • Matthew Guglielmi, Enlightened Electrical (enlightenedelect@gmail.com / 905-484-5776

Plumbers

  • Dalton Savoie – Savvy Plumbing & Drain Services (https://www.savvyplumbing.ca/)
  • Jason Burke – Journey Plumbing & Mechanical
  • Ian Chambers – Burloak Plumbling (www.burloak-plumbing.com)

Carpenters

Hot Tubs

Home Renovations/Contractors

Tiling & Caulking

  • Mark Foster – General Contractor/Speciality on Tiling (Mark@evergreencontracting.ca / 416-508-5736 / Web)
  • Matthew Stillar – Not Just Caulking (www.notjustcaulking.ca)

Flooring

  • Rakan Khair

Builders/Decor

Home Painting

  • Wj Waji – Interior/Exterior Painting
  • Scott Clark – Living Colour Painters, Interior/Exterior Painting (www.lcpainters.com)

Waste Removal

Other

Home/Property Maintenance (Windows, Doors, Home Decor, Landscaping, etc.)

Windows & Doors

Smart Homes & Technical Services

  • Sean Kontkanen – RSA Properties Inc – Security, smart homes, home theatre, network, cell boosters, etc (905-407-5717 / sean@rsaproperties.ca)

Landscaping & Property Maintenance 

Other

  • Steve Hoover – J&B Greenhouse & Trailer Storage
  • Jordan BradBurn – Residential & Commercial construction (www.bradburngroup.ca)
  • Robert Ackerman – Scenic Artist, Film Sets, Theme Rooms & Design (647-588-5236)

Automotive (Repair, Service, Sales, etc.)

Marketing/Advertising, Cyber Security, Search Engine Optimization & Technology

Marketing, Advertising & Printing

Search Engine Optimization

Cyber Security

  • Jason Hammerschmidt – Owner Cyber Security

IT Services

  • Bojan Cupcez

Merchant Accounts

Business Management

  • Jacques Gauthier, Business Management Consulting (www.carpedia.com / 416-569-5658)

Legal & Accounting (Lawyers, Accountants, Bookkeepers, etc.)

Accountants

  • Bill Butler – Accountant focusing on Small & Medium Sized Businesses (www.deethco.com / 905-333-1775 / bbutler@deethco.com)
  • Nic Freeman – Accountant focusing on Small & Medium Sized Businesses (519-570-4000 x2976 / nfreeman@bdo.ca)
  • Jay Thomblison – Accountant  (www.jtca.ca / 905-319-3515)

Lawyers

  • Paul Silva – Lawyer specializing in Real Estate & Wills
  • Brent Nyznyk – Precision Paralegal Services (www.precisionparalegal.ca)
  • Joseph Kazubek – JK Paralegal Services (www.jklegal.ca)
  • Sam Rasim Misheal – Family Lawyer (www.familyseparation.ca / 905-842-4977 x 4)
  • Ryan Carson (www.carsonlaw.ca)

Professional Coaching

  • Ronn James – Business Coach, specializing in Real Estate, Mortgage and Sales Teams

Financial Services (Insurance, Financial Advisors,  Banking, etc.)

Financial Planning, Insurance & Investments

  • Brian Laundry – Planning & Insurance Expert — Professional Resource for other financial advisors (289-644-2345 / blaundry@blfinancial.ca)
  • Clint Theys – Group Insurance & Pensions (clint@theysinsurance.ca / 416-565-9185)
  • Peter Ziolkowski – Experior Financial Group
  • Alaeddine Jabri – Insurance & Investment Broker (www.novusfinancial.ca)
  • Jonathan Jackson – Sunlife Financial Advisor (www.sunlife.ca/jonathan.jackson)
  • Mark McDonald – Financial & Insurance Advisor
  • Ryan Brown (www.escarpmentwealth.ca)
  • Rahul Arora – Process Company Payments & Banking (www.ronduremedia.com/)
  • Jason DeJean – Argosy Securities Inc (www.argosynoonnan.com / 289-233-0350)

Auto & Commercial Insurance

  • Stephen Warnica –  Home Auto Commercial Insurance (905-317-1875)

Home Purchase/Financing (Realtors, Mortgage Brokers, Home Inspection, etc.)

Realtors

Mortgage Brokers

Home Inspection

  • Tim Labankich – Owner Home Inspection & Energy Audits & Property Maintenance
  • Bryan Shering – Professional Home Inspector (www.inspect905.com / 905-333-0211)
  • Andrew Robb – Calzonetti Contracting (289-707-3033 / www.calzonetticotracting.ca)

Stores & Restaurants (Services Business)

Photographers

Restaurants & Food

Entertainment (DJ’s, Playgrounds, Music, Home Products & other family services)

Children’s Entertainment/Birthday Party Locations

  • Jessie Pimentel – Little Goobers
  • Phil Atkinson – Paintball Nation (www.paintballnation.ca)
  • Gagan Pabla – Arcade on Wheels

Music, DJ’s & Limo Service

Sports

  • Graham Agnew – Senior Hockey Instructor at The Pond 
  • John Lippert – Pro Hockey Visors

Television

  • Kevin Benton – Home Theatre Projector Lamp Specialists (www.projectorbulbs.ca)
  • Andrew Massey – iptv Services (Vaders iptv & Beast TV)

Pets

  • Rick Allen – Bark & Fitz Burlington North

Other

Other Businesses (Hot Sauce, Recruitment, Apparel, etc.)

Health & Education (Personal Training, Health Care, Tutoring, etc.)

Dentists & Orthodontists

Chiropractors

Optometrists & Vision

  • Farshad Nekoui – Vision Clinic (Walkers Line/Dundas)
  • Pat Hector – Optometrist (www.hectoroptmetrists.com)

Chiropodists/Foot Care

  • Amit Kaushal – Chiropodist & Foot Clinic

Massage Therapy (RMT)

  • Derrick Gibson (905-483-3329)

Physiotherapy

Personal Training/Fitness

Health Care & Spas

  • Nitin Jain – Healthmedica Canada – Medical Clinic & Medispa

Tutoring/Teaching

  • Bob Ross – Tutor Bright (In Home Tutoring)