| |
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 |
