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-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.|