Peace of Mind or Protection

Canadians go to the bank for a mortgage and, during the final paperwork, they find themselves in the middle of a hard sale for insurance on the mortgage. Sounds like a great idea but is the bank the right choice?

A person should insure themselves for any debt that is owing since you never can tell when your health may take a turn for the worse. So let’s compare the options:

  • Life Insurance
    • With life insurance you are insuring you

    • Life insurance is fully underwritten which means you will get paid

    • The death benefit always stays the same

    • Complete one application for the entire term of the mortgage

    • Life insurance can be used for Estate purposes
  • Mortgage Insurance
    • With Mortgage insurance you are insuring the bank
    • Underwritten at time of claim which means you may not get paid if you answered the questions wrong
    • Death benefit is equal to the balance of the mortgage which is always decreasing
    • Answer new questions every time you change mortgage lenders. What happens if health changes?
    • Mortgage insurance is to insure the bank only

The evidence is overwhelming — banks should focus on lending money. Trust your family’s security to the professionals in insurance.

Life Quoter
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