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. |
It is a long established fact that a reader will be distracted by the readable content of a page.