Insurance / Mortgage Protection
Mortgage Protection Insurance: Keep Your Family in Their Home
If you pass away or become seriously ill, mortgage protection makes sure your family can keep the home. We compare the bank’s mortgage insurance with personal coverage so you get the better deal.
When you sign your mortgage, the bank usually offers its own mortgage life insurance. It is easy to sign up for, but it is not always the best value. Personal term life insurance can protect the same mortgage, often for less, and gives your family more control.
Bank mortgage insurance vs. personal term insurance
Bank mortgage insurance
- Pays the bank, not your family
- Coverage shrinks as your mortgage goes down, but premiums usually don’t
- Health questions may be reviewed only when you claim
- Ends if you move your mortgage to another lender
Personal term life insurance
- Pays your family, who decide how to use it
- Coverage amount stays the same
- Health is reviewed upfront, so you know you are covered
- Stays with you if you switch banks or move
Ways to protect your mortgage
Critical illness insurance
A lump sum to make payments or pay down the mortgage if you are diagnosed with a serious illness.
Learn more →Disability insurance
A monthly income to keep up with mortgage payments if you cannot work.
Learn more →Frequently asked questions
Do I have to buy the bank’s mortgage insurance?
No. Mortgage life insurance from the bank is optional. You can protect your mortgage with your own policy instead. Don’t confuse it with CMHC default insurance, which is required on some mortgages and protects the lender.
How much coverage do I need?
At least the amount of your mortgage, plus enough for other debts and your family’s living costs. We can work it out with you.
Can I cancel the bank insurance after I get my own?
Yes, but only once your new coverage is approved and in force, so you are never without protection.
Talk to Devendra Kumar, Financial Planner (CLU, CHS)
DK Insurance & Investment Inc. serves families across the GTA from offices in Vaughan, Mississauga and Brampton. Call or text +1-647-761-0517 for a free, no-obligation conversation.