Mortgage Insurance

Protecting Your Mortgage with Life Insurance

Life Insurance and Mortgage Insurance are two types of insurance offered to Canadians designed to provide security and protection to individuals and their families. While both serve to safeguard against unforeseen circumstances, they differ significantly in terms of benefits and coverage.

Life Insurance

Payout shrinks over time as the mortgage balance is paid off, and can only be applied towards your mortgage, nothing else.

Benefit Amount & Flexibility

Guaranteed, level payout amount throughout the term, which can be used for anything, not just the mortgage.

Post-claim underwriting means you may not be guaranteed a payout if the lender finds a reason to decline the claim after you pass away.

Security

Underwriting is done beforehand, and you are approved for life insurance before you obtain your policy.

You do not get a chance to get better rates if you are healthy, and the premiums change when you renew your mortgage.

Premiums

Premiums are competitive based on health and stays the same throughout the term.

The lender owns the policy and is the only beneficiary.

Ownership & Beneficiary

You own the policy and choose the beneficiary.

Coverage ends when you move or refinance, and you’ll need to reapply.

Portability

Coverage remains intact even if you move, refinance, or pay off your home early.

Disclosure: The information in this page is for general information purposes only and is not intended to provide legal, tax, financial or professional advice. Eau Claire Partners Inc. and its affiliates assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this page. Please seek professional advice before making any decision.