Protect what matters most, not just your house
When you buy a home, you need a way to help protect yourself and your family financially, no matter what happens.
Your bank/lending institution probably talked to you about mortgage insurance (also called creditor insurance) when you bought your house. It means if you die, your mortgage is paid off.
But is mortgage insurance the best option for you?
If you want to protect more than just your home, individual insurance may better suit your needs. Individual insurance generally provides more control, options and benefits to help you financially protect what matters most.
By comparing mortgage and individual life insurance, you ensure you’re giving yourself and your family the type of insurance protection that meets your needs.
A financial security advisor is a trusted professional who can help you build a financial security plan to help protect your mortgage and what matters most in your life.
Individual insurance versus mortgage insurance
|?||Individual insurance||Mortgage insurance|
|Who receives the money?||Money goes to whomever you choose and they decide how the money is used.||Money goes to the lender. The money can only go toward paying down your mortgage.|
|What is my coverage like?||Choose how long you want your coverage to last – short-term or for a lifetime. Your coverage stays the same as you pay down your mortgage.1||You’re typically only covered for the mortgage. The amount of coverage decreases as your mortgage is paid down, but the monthly premium payment doesn’t decrease.|
|How much choice do I have?||You have many choices. Pick between several types of insurance – life, critical illness and disability insurance. Each type offers different product options and optional benefits (called riders) customized based on your current or evolving needs.||In general, you have limited options. For example: mortgage life insurance only lasts until you’ve paid off your mortgage – you typically can’t make changes based on your evolving needs nor make it last a lifetime. If your lender offers critical illness and/or disability insurance (not all do) you typically have to buy mortgage life insurance first or at the same time.|
|Who controls the policy?||You own the policy, giving you control over a variety of options. It’s unrelated to your mortgage, so it doesn’t matter if you move your mortgage to a different lending institution.||The lender typically owns the policy so you can’t move your mortgage insurance to another lending institution. If you find a better mortgage somewhere else, you may have to re-qualify medically for mortgage insurance protection with the new lender. This may increase your premiums.|
|What happens when I pay off my mortgage?||Your insurance isn’t tied to your mortgage so your coverage stays with you, and you may have options to adapt the coverage to meet evolving needs.||Your insurance coverage ends.|
1 As long as you haven’t changed your policy – for instance, added coverage or benefits, taken out a policy loan or made a withdrawal.