Term Life vs. Bank Mortgage Insurance

Find out why term life beats bank insurance for mortgage protection!

Question Term Life Insurance Bank Mortgage Insurance
Can the mortgage insurance be converted to permanent insurance? Yes, renewable and convertible plans are available. No.
Do the death benefits remain the same? Yes. Only you can change the coverage once a policy is issued. No. Bank mortgage insurance only covers the outstanding loan (the benefit decreases).
Who owns the policy? You do. The lender holds the contract with the insurance carrier.
Can I add optional benefits to the coverage? Yes, additional coverage may be obtained, depending on the insurance carrier. No.
Do I have any control over the policy's beneficiary? Yes, you determine the beneficiary, who uses the proceeds to pay none, part of, or all of the mortgage. No, the bank is the beneficiary.
What if I move? No effect. The insurance coverage ends with the mortgage.
What about medical exams? Usually, but only once (prior to approval). You might have to re-qualify with new rates.
Can I keep this mortgage insurance for life? Yes. No, it terminates at age 65.
Are the premiums taxable? No. Yes (provincial sales tax).

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