Mortgage Insurance Comparison

Acquiring individually-owned mortgage insurance is an excellent choice.

	Individually-owned Mortgage Insurance	Through your Mortgage Lender
Type of Insurance Available	Term or Permanent (Universal Life)	Term
Beneficiary	Anyone you decide	Your Mortgage Lender
How Insurance is Used	Your beneficiaries decide. For example, if the mortgage rate is low, it may be better to invest the death benefit rather than use it to pay off the mortgage.	Pays off the mortgage
Payment Frequency	Monthly, quarterly, semi-annually, annually	With your mortgage payment
Other Life Insurance Needs	You can take care of all your other insurance needs with one policy	You can cover only the mortgage
Continuing Coverage	You're either covered until age 80 or you can convert* to any eligible permanent or universal life policy	Your insurance ends with your mortgage
Portability	You insurance stays with you even if you refinance or change lenders	If you move your mortgage, your insurance ends and you have to re-qualify with the new lender. Refinancing may also require you to re-qualify, even though you're with the same lender.
Insurance Benefit	You can get a level benefit, or you can adjust your benefit over time to match your mortgage	Decreasing with the amount borrowed
Advice	You deal with a licensed life insurance advisor who can help you determine the type and amount of coverage that's best for you	Your mortgage lender may not be licensed and may not be able to provide advice on life insurance
Premium Guarantees	Your premiums are guaranteed, as are future renewals	Premiums are not guaranteed (although they rarely change)
How long are Premiums Paid?	Will vary depending on the plan chosen	As long as the mortgage is payable
Male and Female Rates	Your premium is based on gender, smoking status, health and lifestyle factors	Same rates for men and women
Provincial Sales Tax	None	Premiums in Quebec and Ontario are subject to sales tax
Options and Riders	You can customize your coverage with Waiver of Premium, Accidental Death and Dismemberment and Children's Insurance riders	None usually available
Non-Smoking and Healthy Lifestyle Discounts	Yes	Not usually offered