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Comparing Mortgage Life Insurance Rates Among the Big Five Banks
Mortgage life insurance
does not stack up against
an individual life plan.
Most Canadians who take out a mortgage with one of the big five banks are also offered a mortgage life insurance policy which will pay off the insured's mortgage if he or she dies during the mortgage period.
On the surface, this seems like a very good deal, but when further analyzed the pricing offered by big five banks for this policy is generally much higher than an individual life policy. Individual life insurance also comes with additional benefits, including:
1.Level coverage. the policy does not decrease as your mortgage decreases.
2. The coverage is portable. It moves with you if you decide to switch banks or move to another home.
3. You choose your own beneficiary.
4. A wide variety of plans that can be combined with your mortgage. A number of terms and plans are available and your life insurance can be combined with your other insurance plans. Your mortgage component can also be merged with your other life insurance needs.
The following is the premium pricing for $300,000 of mortgage life coverage through the big five banks for a 50-year-old, male non-smoker:
RBC Insurance: $92.00 a month.
BMO: $192.00 a month
TD Bank: $120.00 a month.
Scotia Bank: $120.00 a month
CIBC: $97.20 a month.
Most of the banks do offer a discount when coverage is taken out on both spouses. However, when compared with an individual life insurance plan, the pricing does not stack up.
For the same 50-year-old, male non smoker,
$300,000 of Term 10 coverage would be:
BMO Insurance: $49.95 a month
Equitable Life: $51.75 a month
Canada Life: $52.29 a month
$300,000 Term 20 coverage would be:
Manulife: $103.29 a month
Canada Life: $105.75 a month
Standard Life: $107.64 a month
For more details, visit our Mortgage Insurance Quote Page
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Interested in life insurance with medical exam. just canceled my mortgage ins, premium to high.
Thanks for the note – we are happy to assist info@lsminsurance.ca 1.866.899.4849
Hello!
Is it possible to obtain a ranking of Creditor Life insurance companies?
Thanks
Thanks Cintya – ranked by what criteria? Regards,
Creditor life insurance leading companies, or companies whose main business is the creditor life insurance.
Thanks
Hi Cintya,
Thanks but ranked in what way. Plan available, by premiums sold or by lowest pricee to the consumer.
Lowest price to the consumer and premiums sold would be great.
The example in the article for $300,000 of mortgage life coverage through the big five banks for a 50-year-old, male non-smoker is below. Other pricing would depending on the insured’s age mortgage amount and weather they want life and disability or just life. In terms premiums sold I do think this numbers are public for creditor insurance. Thanks,
RBC Insurance: $92.00 a month.
BMO: $192.00 a month
TD Bank: $120.00 a month.
Scotia Bank: $120.00 a month
CIBC: $97.20 a month.
ok, thnks
You’re welcome!