Term Life InsuranceMortgage Insurance

Who owns the policy?

  • You
  • The Bank/Lender

Who is the Beneficiary?

  • You Choose
  • The Bank/Lender
Is there a medical?
  • Maybe. Policy is active upon approval
  • No. Medicals at the time of claim often lead to declined payouts
Will my coverage ever change?
  • No. Coverage will never change
  • Yes. Your coverage is decreasing as it only covers the balance of the mortgage/loan
What happens if I sell my home?
  • Your policy remains in force as long as you are the owner
  • The policy is cancelled
What happens when I renew my mortgage
  • Nothing changes
  • You reapply for new coverage often at a higher cost

Term Life Insurance vs. Mortgage Insurance

​Provide financial security for your loved ones, your family and your business. With life insurance, you can give them a tax-free payment upon death.

​While all life insurance plans pay a benefit when someone dies, there are two basic categories of life insurance: term life and permanent life.

Life insurance

Term Life Insurance

​Term life insurance is affordable, easy-to-understand coverage that gives you flexible protection.

Your insurance costs will remain the same for a specific period of time (the "term"), until it renews for another term. If you die while the policy is in effect, a tax-free payment will go to the person or people you name (your "beneficiaries"). And with most term policies, you can also convert your coverage to permanent insurance regardless of any changes to your health, occupation or lifestyle. Common terms for these plans are 10, 15, 20, 30, and 100 years.

*Term Life Insurance is also great replacement for mortgage insurance. Usually, Term is more affordably priced and provides greater flexibility, as displayed in the chart below:

Permanent Life Insurance

​Permanent life insurance is often called whole life insurance because it covers you for your whole life. It gives your beneficiaries a tax-free payment after you die.

Some plans can build large cash value over time, and can be used in the future as a retirement plan alternative to an RRSP. Permanent insurance costs are usually guaranteed not to increase from the time you first buy the policy. And some permanent insurance plans let you pay for a limited time and then never again.

Universal life is another form of permanent life insurance that you may want to consider. These policies provide the flexibility to increase coverage and cash values through additional deposits.