Life Insurance and Mortgage Insurance help Canadians protect themselves, their families, and their mortgages. While both provide security against unforeseen circumstances, they differ significantly in terms of benefits and coverage.
Your payout decreases as you pay down your mortgage and can only cover your remaining mortgage balance.
Guaranteed, level payout amount throughout the term, which can be used for anything, not just the mortgage.
The lender reviews your claim after you pass away, which may affect whether your beneficiaries receive a payout.
The insurer completes underwriting beforehand and approves your life insurance before you receive your policy.
You cannot get better rates based on improved health, and your premiums may change when you renew your mortgage.
Your premiums reflect your health and stay the same throughout the term.
The lender owns the policy and is the only beneficiary.
You own the policy and choose the beneficiary.
Coverage ends when you move or refinance, and you’ll need to reapply.
Coverage remains intact even if you move, refinance, or pay off your home early.
Payout shrinks over time as the mortgage balance is paid off, and can only be applied towards your mortgage, nothing else.
Guaranteed, level payout amount throughout the term, which can be used for anything, not just the mortgage.
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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. Seek professional advice before making any decision.
