| Considerations: |
Most Mortgage Insurance from a bank, credit union, or mortgage broker: |
Term Insurance through a Canadian Life Insurer: |
| Do I own the policy? |
No, the lending institution holds the contract with the insurance carrier? |
Yes |
| Can I choose my beneficiary? |
No, the mortgage provider is the beneficiary |
Yes |
| Will I still have insurance if the mortgage is paid off? |
No |
Yes |
| Can I get non-smoker rates? |
No |
Yes |
| Does the death benefit change over time? |
Yes |
No |
| Can I change the plan if my needs change? |
No |
Yes, there are additional coverages that can be added or dropped, the coverage can be increased or decreased, and the plan can be made permanent. |
| If I change my lender, will I still have insurance coverage?
(Is it portable)
|
No, you would have to get coverage through the new lender. If your health has changed, you might not be eligible. |
Yes, whether you move, refinance, or change your lender, you keep your coverage. |
| Is the amount I pay guaranteed? |
No, your lender can change the rates of your policy at any time. |
Yes, your qualifying rate and renewal rate is guaranteed. |
| Is the amount I’m covered for guaranteed? |
No, your lender can change the policy at any time. |
Yes, the amount you apply and are approved for is guaranteed if the insurance is in force. |
| Can my beneficiaries use the proceeds for something other that the mortgage? |
No |
Yes, your beneficiary can use some or all the tax-free death benefit for other things like living expenses and other debts. |
