Should I Buy Mortage Insurance or Life Insurance?

And do I have to buy Mortgage Insurance from my bank or lending institution?

No. Your mortgage lender will usually offer mortgage insurance to cover the balance owing should you die. But you may also choose to buy insurance directly from your life insurance provider instead. This is often a less costly option and offers much greater flexibility.

Bank Insurance
Your Life Insurance Company
  • Decreasing coverage
  • Level coverage
  • Not transferable.
  • Fully transferable.
  • Underwritten at time of death -
    (non-disclosure may void contract).
  • Approved at time of application.
  • Pays off the mortgage only.
    (Client has no option).
  • Pays to the beneficiary -
    (client decides what to do with proceeds.)
  • Premiums not guaranteed
  • Insurance ends with your mortgage
  • Cannot be changed to Permanent Insurance
  • Premiums are guaranteed
  • Coverage available to age 80
  • Convertible to Permanent Insurance*
  • Usually no discounts for non-smoker or healthy lifestyles factors.
  • Discounts for non-smokers. Additional discounts may be available for healthy lifestyle and family history
  • Same rates for men & women.
  • Lower rates for women..

* Your insurance company will allow you to change to a permanent policy without evidence of insurability.

If wanting to compare your present Mortgage Insurance premiums we recommend that you use the 10 Year Guaranteed Term setting. This will quote Ten Year Renewable & Convertible Term premiums that provides level coverage and level premiums for 10 years.

The life insurance quote screen asks for your birthdate, sex, and whether you are a smoker or a non-smoker. In addition, you need to describe your health as “Regular, Regular Plus, Preferred, or Preferred Plus”.

We suggest that you use the “Regular” setting. This will generate the “standard” premium that is issued by most insurance companies.

The "Plus and Preferred" settings will generate lower premiums that are available to individuals who qualify. Qualification is dependant on several issues such as height, weight, blood pressure, cholesterol, family medical history, recreational activities, plus many other factors.

Please feel free to adjust the settings to see the other rates. And should you require assistance or want additional information please call or contact Tony Gray at 416-281-6266 or tony@clarke-slighte.com. We would be pleased to send or email you full quotations comparing the most competitive rates.

Please click this link to go to our online quote.

 

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