Mortgage Insurance

Protect your home and not your bank!

Banks offer you Insurance policies to help pay off your home in case something happens and you are unable to pay your monthly mortgage. However, their policies are skewed to protect themselves much more than to protect you.

Here are the main differences between purchasing Mortgage Insurance from a bank and having a personal policy created for you:

	Mortgage Insurance from a BANK	PERSONAL Mortgage Insurance
Does the death benefit remain the same for the whole policy?	NO As your mortgage decreases, so does your coverage… but your premium stays the same. The death benefit will pay only the balance of the mortgage upon death.	YES The death benefit of a personal plan remains the same for as long as you own the plan unless you decide to decrease the coverage. The death benefit will be whatever the face amount of Insurance that has been purchased.
Do I Own the Policy?	NO The bank has total control over your coverage and can cancel it at any time	YES You own the coverage and are the only one who can cancel it or make any changes.
Can I choose the Beneficiary of the Policy?	NO The only beneficiary for your policy is the bank.	YES You have the choice of whomever you wish to name as beneficiary of your life policy.
Can my beneficiaries use the proceeds from the policy for something other than paying off the mortgage?	NO They are the ones who will receive the money to cover your outstanding mortgage in the event that you die.	YES Upon death, your survivor may choose not to pay the mortgage off immediately, as there may be other investments or expenses besides paying off the mortgage.
Is the coverage flexible?	NO The lender will only insure you for the amount of your mortgage. You can’t alter, renew or convert the policy. If you move your mortgage to a NO ther lender, you can’t transfer your policy. Your coverage ends when the mortgage is paid off or ends.	YES You choose the amount of coverage you want regardless of your mortgage balance. You can increase or decrease your coverage, renew your coverage and convert to permanent protection. If you renegotiate or pay down your mortgage, or sell your home, you can continue your coverage.
Is the coverage portable?	NO If you want to move your mortgage to another institution, you will have to reapply for mortgage Insurance. This will then be purchased at your current age at a higher premium, assuming you are healthy enough to qualify for the coverage.	YES No matter where you have your mortgage, your coverage will stay with you. You do not need to worry about re-qualifying for coverage. You would only have to prove insurability if you needed to increase your coverage.
Are preferred rates available if I'm in excellent health or a non-smoker?	NO Banks issue group rates for Insurance coverage, meaning that everyone pays an average premium regardless of your individual health or lifestyle.	YES Many companies offer preferred rates if you are in excellent health or if you are a non-smoker, which results in a lower premium compared to a standard rate.
Can I continue the coverage after the mortgage is paid?	NO The day your last mortgage payment is made, your mortgage Insurance terminates. If you die the next day after paying your mortgage, no benefit is paid.	YES When your mortgage is paid, you have the option to continue the coverage, convert the coverage or cancel the coverage. The choice is totally yours.