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Mortgage protection offers financial security for your mortgage against whatever life throws at you, from serious illness to disability or death. The best form of mortgage protection comes from simply getting a term life insurance.
Term Life Insurance can save you significant money during the mortgage term.
Term Life Insurance has several benefits over your lender's mortgage insurance.
Flexible term & coverage
Term Life Insurance has several benefits over lender's mortgage insurance.
Term Life: Can cover everything from debts to family expenses and obligations
Mortgage Insurance: Only covers the decreasing mortgage balance
Term Life: Can cover you and your family
Mortgage Insurance: Only covers the borrower
Term Life: Can increase coverage amount and term
Mortgage Insurance: No flexibility to change amount or term
Term Life: Consistent coverage throughout the term
Mortgage Insurance: Coverage reduces with mortgage payments
Term Life: Guaranteed coverage means a higher probability of paid claims
Mortgage Insurance: Coverage not guaranteed, only evaluated at claim
Term Life: You choose the beneficiary
Mortgage Insurance: Your lender is the beneficiary
Term Life: Personalised premiums, with lower pricing for healthier clients
Mortgage Insurance: Generic rates, usually higher, and stay same even with reducing coverage
Term Life: Ability to switch lenders throughout the mortgage term
Mortgage Insurance: Coverage may be lost when switching lenders
Term Life: Flexibility to use proceeds in any way
Mortgage Insurance: Can only be used by lender to pay mortgage
Mortgage protection insurance – or mortgage life insurance – is the process of protecting your mortgage debt through term life insurance. With a term that matches the length of your mortgage’s amortization period and a payout that covers the amount you owe on the mortgage, term life insurance can be a more flexible and affordable way to financially protect your home for your dependents.
Mortgage insurance is offered by your lender when you initially take out your mortgage to purchase or refinance a home. It is meant to protect the lender by paying off your mortgage debt should something happen to you during the mortgage’s amortization period. The premium for mortgage insurance does not decrease even as your mortgage debt goes down. The payment is not guaranteed as the policy is underwritten when it’s claimed upon, not when you purchase it.
Mortgage life insurance offered by life insurance companies provides a consistent payout that is not tied to your mortgage debt. The payment is guaranteed as the policy is underwritten when purchased. Because of this rigorous underwriting, the premiums are typically lower. Your beneficiaries have complete control over how they wish to use the proceeds of mortgage life insurance.
Mortgage life insurance is meant to protect you and your dependents, should something unexpected happen to you during the amortization period of your mortgage.
Canadian Mortgage and Housing Corporation (CMHC) insurance is a one-time insurance payment Canadians need to make if they plan on putting down less than 20 percent for a downpayment on their mortgage. It exists to protect your lender should you default on replaying your mortgage loan.
Mortgage protection insurance is a cost-effective way to protect your home for your loved ones or estate. If you want the most flexibility and guaranteed protection when insuring your mortgage, you need mortgage protection insurance.
Read more reasons why protecting your mortgage with term life insurance might be the right fit in our Honest Guide to Mortgage Insurance.
Many different factors go into the cost of mortgage life insurance. There are individual factors pertaining to your insurability, such as age, smoking status, gender, health and more; plus there are policy dependent factors that also hinge on your mortgage amortization period, like the amount of coverage you need and the term length.
Use our quick online tool to determine your need and get instant quotes.
Yes! Our online tools let you browse or take quotes from 16 of Canada’s best insurance companies and start shopping for mortgage protection insurance in minutes. Just provide us with some basic information and you can get started right away!
PolicyAdvisor has partnered with Canada’s 16 best insurance companies to create the biggest marketplace for mortgage protection insurance in the country. You can protect your mortgage through term life insurance with policies from Assumption Life, BMO, Canada Life, CPP, La Capitale, Empire Life, Equitable, Foresters, Humania, iA Group, ivari, Manulife, RBC, SSQ, Wawanesa. We are always building relationships with new potential partners to offer Canadians the most comprehensive choices for mortgage protection. Compare them now with our online tool.
We’ve pored over and researched policies from the best mortgage insurance companies in Canada, and built the tools for you to find the best mortgage life insurance specific to your needs and situation. Answer a few basic questions and you’ll find the best policy for your needs in minutes.
*Representative premium for a 35-year old non-smoker woman in regular health for a 25 year term with $500,000 in coverage. Bank mortgage premium reflects average of 4 major bank lenders with published rates.