Mortgage Insurance
The majority of individuals who purchase mortgage insurance at the time of signing their mortgage are not aware of the other options. The mortgage insurance you purchase at the time of lending is through your financial institution.
This also means you could be eligible for potential saving and better coverage if you were to go direct to an insurance company. Let’s compare the plan details.
The majority of individuals who purchase mortgage insurance at the time of signing their mortgage are not aware of the other options. The mortgage insurance you purchase at the time of lending is through your financial institution.
This also means you could be eligible for potential saving and better coverage if you were to go direct to an insurance company. Let’s compare the plan details.
Your lender offers only the amount related to your mortgage. Should you purchase a $500,000 mortgage, your coverage will be $500,000.
When you go direct to the Insurance company you have the freedom to choose how much coverage you need. If you have additional debts (credit card debt or student loans etc) you can purchase more coverage to pay off those debts should you or your spouse pass away unexpectedly. Thus leaving you in a better financial situation.
Your lenders policy is describe as a decreasing coverage amount. Even though your monthly payment remains the same, as your mortgage balance declines your benefits decrease too. This means in a later time you will be drastically over paying for your coverage.
When you go direct to the Insurance company both your payment and coverage amount stays level. Meaning even though your mortgage is decreasing the amount of benefit stays the same. In the event your spouse were to pass away, you would receive enough to pay off the mortgage and still have some TAX FREE money left over.
If you purchase coverage through your lender. It should not come without shock that the lender receives the payout on the insurance policy. You won’t have to pay for your mortgage but you also won’t collect any additional proceeds.
If you go direct to the Insurance company the benefits are paid out to the surviving beneficiary. This could mean there is additional money to help you through these tough times.
If you purchase coverage through your lender. It should not come without shock that the lender receives the payout on the insurance policy. You won’t have to pay for your mortgage but you also won’t collect any additional proceeds.
If you go direct to the Insurance company the benefits are paid out to the surviving beneficiary. This could mean there is additional money to help you through these tough times.
Policies purchased through your lender are non-transferable, meaning you will need to re-apply. Being older and potently in worse health means your coverage would cost more.
- Direct to the Insurance company your coverage is transferable. There is no need to re-apply.
- Price, what does it cost to have life insurance.
- Your lender coverage is typically 42% more expensive when comparing it to going direct to the insurance companies. See below table for comparison;
TD Canada Trust
Age | One Applicant | Two Applicants* |
|---|---|---|
35 | $70 | $105 |
40 | $105 | $157 |
45 | $150 | $225 |
50 | $220 | $330 |
* 20% Family Discount is applied
RBC
Age | One Applicant | Two Applicants* |
|---|---|---|
35 | $65 | $110 |
40 | $100 | $170 |
45 | $145 | $245 |
50 | $200 | $340 |
* 20% Family Discount is applied
Scotiabank
Age | One Applicant | Two Applicants* |
|---|---|---|
35 | $65 | $104 |
40 | $100 | $160 |
45 | $145 | $232 |
50 | $200 | $320 |
* 20% Family Discount is applied
Age | Male Applicant | One Applicant | Two Applicants* |
|---|---|---|---|
35 | $37 | $23 | $60 |
40 | $52 | $36 | $88 |
45 | $82 | $55 | $137 |
50 | $136 | $91 | $227 |
“By eliminating the middlemen and going straight to the insurance provider you can find a lower cost for better coverage”
For more information or to speak with a representative feel free to reach out as one of our non-commission advisors will help answer any questions you may have.
You can CLICK HERE to get an instant quote. Compare all the top insurance companies to see what the best price is, given your situation.
Its best to work with an insurance company that is going to give you the best policy for your own situation.
Feel free to speak with one of our representative and ask for our Easy Application Process.
When it comes to purchasing life insurance there is no one size fits all.
The coverage that will be best for you will be determined by your age, the amount of cover you are looking for, the amount of time you need the coverage, your nicotine use and potentially any other health concerns.
Before canceling your mortgage life insurance its best to get your new policy approved and in effect, first. This means the insurance company has approved your coverage and the first payment is made.
To make sure you are not having to pay for both coverage at the same time speak to one of our representatives for help.
You can CLICK HERE to get an instant quote. Compare all the top insurance companies to see what the best price is, given your situation.
Its best to work with an insurance company that is going to give you the best policy for your own situation.
Feel free to speak with one of our representative and ask for our Easy Application Process.
When it comes to purchasing life insurance there is no one size fits all.
The coverage that will be best for you will be determined by your age, the amount of cover you are looking for, the amount of time you need the coverage, your nicotine use and potentially any other health concerns.
Before canceling your mortgage life insurance its best to get your new policy approved and in effect, first. This means the insurance company has approved your coverage and the first payment is made.
To make sure you are not having to pay for both coverage at the same time speak to one of our representatives for help.