Buying a home is a huge milestone — and for many Canadians, it’s also when they first hear about mortgage life insurance. But there’s a big difference between mortgage life insurance and personal term life coverage.
What Is Mortgage Life Insurance?
It’s offered by banks and lenders to pay off your mortgage if you pass away. The payout goes directly to the lender, not your family.
Why It Falls Short
- Coverage shrinks as your mortgage decreases — but premiums stay the same
- You can’t choose your beneficiary
- It’s not portable — if you switch lenders, you may need to reapply
- Often more expensive than term life insurance
Term Life Insurance Offers Flexibility and Control
- Your family receives the payout and chooses how to use it
- Coverage amount stays the same for the entire term
- Can cover more than just your mortgage (like income, debts, education)
Final Thought
Mortgage insurance protects your lender. Term life protects your family. If you’re a homeowner, opt for personal coverage that gives you control.
If you would like for a licensed professional to help you explore your options, fill in a quick form below to get connected to a Canadian Insurance Broker.
