Your home is probably the biggest investment you’ll ever make.
Have you considered the advantages of personal life insurance over that of mortgage insurance offered by banks?
You will benefit from a better coverage at competitive rates!
Let’s take a look at a monthly premium comparison for $400,000 of mortgage life insurance with decreasing insurance amount issued by a lender versus our Term Plus insurance coverage with decreasing insurance amount.
Individual life insurance - Term Plus 25
| Age | Lender’s rate* male or female | Term Plus 25 rate female non smoker** | Monthly savings with Term Plus | Annual savings with Term Plus |
| 35 | $52.00 | $26.64 | $25.36 | $304.32 |
| 40 | $80.00 | $36.72 | $43.28 | $519.36 |
| 45 | $116.00 | $52.56 | $63.44 | $761.28 |
| 50 | $164.00 | $82.80 | $81.20 | $974.40 |
Individual life insurance - Term Plus 20
| Age | Lender’s rate* male or female | Term Plus 20 rate male non smoker** | Monthly savings with Term Plus | Annual savings with Term Plus |
| 35 | $52.00 | $27.72 | $24.28 | $291.36 |
| 40 | $80.00 | $34.56 | $45.44 | $545.28 |
| 45 | $116.00 | $55.08 | $60.92 | $731.04 |
| 50 | $164.00 | $84.96 | $79.04 | $948.48 |
* Monthly premium of a Canadian Bank as of April 2021 used for illustration purposes. Provincial sales tax could also apply where applicable.
** Premiums as of May 2021, subject to change.
Talk to you financial security advisor and learn more about how you can benefit from our Term Plus insurance coverage.
Questions you should ask before obtaining mortgage insurance…
Q. Can I choose my own beneficiary for the insurance proceeds?
A. Because the mortgage lender is the policy owner, they automatically become the beneficiary of the proceeds.
Q. Can I apply for more coverage for other needs?
A. You can apply only for an amount equal to the initial mortgage through the mortgage lender.
Q. Will my coverage remain level throughout the mortgage period?
A. The amount of coverage available through a mortgage lender is limited to the outstanding mortgage balance. This coverage amount decreases with each mortgage payment made, but your cost will remain the same.
Q. Are my premiums fully guaranteed in the contract?
A. Premiums paid through a mortgage lender are on a group basis and therefore can be increased on a group basis if the experience of that group become unfavorable.
Q. Could I pay less if I’m in good health and don’t smoke?
A. Most mortgage insurance available through banks consider only the age of the borrower to determine your cost of insurance. There is no preferred pricing for better health risks.
Q. Does my coverage stay in force if I move or change mortgage lenders?
A. Mortgage insurance at most banks is not portable. If you move or change mortgage lenders, you must re-apply and qualify for new coverage with the cost based on your new age.
Q. Can my coverage extend past my mortgage period?
A. Since mortgage lenders only offer coverage to protect the outstanding mortgage balance, once your mortgage is paid off, regardless of time, your insurance coverage will cease.
Q. Can I convert my coverage to a permanent plan, even if my health has changed?
A. There are no conversion privileges with your bank’s mortgage insurance.
Q. Am I guaranteed to receive advice from a licensed insurance advisor?
A. Service representatives with mortgage lenders are not licensed insurance advisors, and therefore cannot offer expert advice regarding your insurance needs.
Why settle for bank insurance when you could take advantage of these great benefits:
As you have probably concluded there are many variables to consider when deciding which type of insurance is best for you. Contact Jack to help you decide which type of insurance best suits you and your family’s needs.