Protect the investment in your home with Individual Mortgage Insurance. When it comes to buying your home you take the time to consider all options to ensure the home is right for you.
Why not do the same when it comes to protecting your home – most likely your single biggest investment?
Many consumers do not know they have choices or they do not take the time to consider Individual Mortgage Insurance vs. Creditor Insurance through their lending institution. Nine out of ten people that compare Individual Mortgage Insurance with their mortgage insurance from their lending institution, purchase Individual Mortgage Insurance. Generally, you are going to experience a 20%+ discount but the real benefits are in the brief summary below.
Creditor (Mortgage) Insurance Individual Insurance
Most companies offer decreasing term insurance. Even though the death benefit is decreasing, the
cost remains level. The coverage expires without allowing you the opportunity to purchase other insurance or provide you with cash values.
You can choose term coverage and match the term length to your amortization period. A term policy may be converted, regardless of health, until age 65.
The proceeds are payable to the mortgage company. In the event of death, the mortgage is automatically repaid. You appoint a beneficiary who can use the proceeds in whatever manner he/she wishes (i.e., to invest rather than pay off a low interest mortgage).
In most cases, if you take your mortgage to another company, you lose your protection. To obtain
mortgage insurance with the new company you must submit new satisfactory evidence of health and
are subject to the current rate charged by the new mortgage company.
Your policy is portable. If you
transfer your mortgage to another company, your insurance remains in force – no need to re‐apply and
prove your insurability. You are protected from the danger of losing your insurance because of a change in your health.
The face amount can only be the exact amount of your mortgage (no more, no less). You may select an insurance amount sufficient to cover your mortgage and other outstanding debts and term length to match
You may not be able to insure both you and your spouse if the mortgage is registered in only one
You can insure both you and your spouse even if the mortgage is registered in one spouse’s name.
We strongly recommend that you take a few minutes to watch this video that aired on CBC Marketplace on the “dangers of Mortgage Life Insurance”. Simply click on the photo below to bring up the video.