Mortgage Insurance
From a Bank, Trust Company or
Credit Union

• The lending company owns the policy

• The lending company is the beneficiary

• Coverage is underwritten at the time of claim

• Amount of protection cannot be for any more than the amount owing on the mortgage

• When the mortgage is renewed a new policy is issued at a higher premium

• Cost of Insurance does not decrease even though the amount of protection does

• Insurance is part of a group and subject to a change in carriers and/or terms

• Protection lapses when the following occur:
  • the mortgage is in default
  • you move the mortgage to another institution
  • for a lower mortgage interest rate
  • the mortgage property is sold

• When mortgages are renewed, you usually renew your insurance at the same time and if you have had a serious illness that would make you uninsurable, the bank will usually decline the mortgage insurance.

• Bank Mortgage Insurance does not offer preferred rates for healthy people.

• The bank's mortgage insurance premium can change when you renew the mortgage - usually the term on a mortgage is 3 to 5 years although it could be amortized over 20 to 25 years. Ask to see the rate schedule - it will likely have different rates divided into 5 year age groups - e.g. 35-40;40-45.

• You have a separate policy for the mortgage and other policies for other life insurance needs.

Personally Owned Policy
 

• You own the policy

• You choose the beneficiary

• Coverage is underwritten at the time of application

• You select the amount of insurance protection

• The premium is guarantied and never increases

• Amount of protection does not decrease unless you decide to reduce it

• The insurance is not part of a group and you decide how to tailor it to your needs

• Protection does not lapse when the following occur:
  • When the mortgage is in default
  • When you change mortgage companies
  • When you sell the property

• The protection is guaranteed renewable
  and, after first issued, you will never have to provide medical evidence again.

• You own the policy and it is guaranteed renewable - usually to age 85 although it would be very expensive at older ages. If you have your health, you would purchase new insurance at the end of the term.
  
• Are you healthy and fit? Save big with new preferred life insurance rates that can save 35% or more.

• Premium is fully guaranteed.
  Personal policies have guaranteed rates. They will have premiums that stay the same for 10 years or whatever term you select 10,15 or 20 years.

• You can combine all your insurance needs and get a lower rate with your own plan.