Mortgage Insurance vs. Term Life Insurance

Many Canadians sign up for the bank’s mortgage life insurance without fully examining their options. The chart below gives a quick snapshot of the differences. In addition to the benefits listed below you could be paying thousands of dollars more in insurance premiums over the life of mortgage by taking out the banks plan. You can get an instant quote and compare for yourself at our free Term Life Instant Quote Page. You can also call us at 1.866.899.4849 to find out about our cash back mortgage life insurance plan.

Bank's mortgage Life Insurance	Individual Life Insurance
No discounts on premiums for healthy people.	Discounts on your premium if you are a healthy person with a healthy family history (Very significant savings for older people)
The older you are, the more expensive premiums are. (in comparison to an individual policy)	Over 20 companies competing for your business. Get the best rates available based on your health situation.
Group Policy- No Control	You are in Complete Control
Policy may be cancelled by the bank	Policy can only be cancelled by YOU
Non-portable	Fully-portable
Non-convertible	Fully-convertible (Life portion)
Premiums NOT Guaranteed	Premiums are fully guaranteed on most plans
VOID if mortgage in default.	Insured even if mortgage is in default.
LAPSES if property is sold or if you move your mortgage to another bank.	Your insurance moves with you.
NOT guaranteed renewable at mortgage renewal date.	Automatically renewable to age 85.

4 Responses to “Mortgage Insurance vs. Term Life Insurance”

How much will cost for over $370,000.00

Sara thought on January 22nd, 2010 1:17 am
Hi Sara,

Thanks for the note. The premiums will depend on your age, smoking status and the type of plan and options you select.

I will send you a separate email now. Regards … Lorne

lorne thought on January 22nd, 2010 7:53 am
Hi Lorne,

Would I be able to cancel my present bank mortgage insurance without penalty?

Are your insurance premiums based on my present mortgage balance?

Thank you for your assistance.

Jens Jorken thought on January 26th, 2010 6:53 pm
Hi Jens,

Thanks for the note. You can cancel the bank’s mortgage without a penalty but you would want to make sure you qualify for a new plan before cancelling the banks plan.

Regards … Lorne

lorne thought on January 26th, 2010 7:20 pm

Mortgage Insurance vs. Term Life Insurance