Mortgage Life Insurance Comparison TIP #3
Transferable vs Non-Transferable

Many Canadians have a lot on their plate, they spend time looking for their dream home, dealing with matters at work, negotiating mortgage rates, and much more. This is why Mortgage Life Insurance becomes an important decision, but not one they want to spend an unnecessary amount of time on. 

When we compare Mortgage Life Insurance from your lender vs going direct to an insurance company, there is one competitive advantage the insurance company offers. That is that their plans are independent (often referred to as Transferable). Meaning you do not have to change your Life Insurance just because you found a better mortgage and decided to change it 3 years after making your original decision.

Most of the times when you purchase Life Insurance through your lender, your Life Insurance also gets tied to the lender (Non-Transferable).

That means if you switch lenders in the years to come your Life Insurance will need to be repurchased at the time of signing your new mortgage.

Here are the problems that comes with waiting until the new mortgage signing:

1. You are now older, so your rates will be more expensive to get the same amount of coverage 
2. Its another decision you have to make 
3. Your health may have changed, potentially making you either uninsurable or insurable at a much hire rate. 

By taking the easy option and just taking the coverage that the lenders have to offer you at the time of purchasing your mortgage, you run the risk of putting yourself in a more risky situation for later on. 

Be smart about the coverage you take on. After all, the purpose of it is for the people you love and care about!

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