Important: Watch This Video Before You Buy Mortgage Life Insurance from Your Bank or Lender
7 Reasons Your Own Life Insurance Is Better Than the Default Option from Your Bank or Lender
Lender Mortgage Insurance
- The mortgage lender is automatically the beneficiary
- The insurance is paid directly to the lender and covers your remaining mortgage balance. You have no choice.
- Your mortgage amount reduces over time but your premiums stay the same. You pay more for less over time.
- Your insurance is not always portable. If you change mortgage companies you may lose coverage. You may have to re-qualify for insurance at the new bank / lender.
- You lose the coverage if the mortgage is assumed or in default
- If you cancel your coverage you lose all your premiums.
- Often times underwriting is done post-claim and not upfront causing problems when a claim is made.
Your Own Life Insurance & Disability Plan
- You name the beneficiary. You decide who gets the money.
- You choose how the payment is used. It can pay off the mortgage, eliminate debts and provide money for your family.
- Your coverage amount does not decrease unless you choose. You get what you pay for the whole time.
- Your insurance is portable and tied to you, not the mortgage. You can change your mortgage provider and keep your insurance
- As long as premiums are paid your coverage is maintained. Even if your mortgage is assumed or in default, the life insurance remains in force.
- Some types of Life, Disability and Critical Illness insurance give back all or a portion of your premiums if you cancel the coverage.
- Underwriting is done upfront so you know that you are covered if the worst happens.
See What CBC Marketplace Has to Say About Mortgage Insurance
Watch this CBC Marketplace expose on mortgage insurance in Canada and hear real stories Canadians who thought they were covered but weren’t.
Contact Us
At Safe Pacific Financial, we specialize in helping Canadian business owners, incorporated professionals, and investors structure life insurance for maximum wealth protection, tax savings, and business growth.
If you would like to discuss whole life insurance or investments, we’re happy to chat and see if we can be a good fit to work with you. Fill out our contact form and we will get back to you within 24 hours on business days.
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