Insurance Comparison


  1. You are covered under a group policy owned by the bank.
  2. Because the bank owns the policy you have no control over the policy.
  3. The features and provisions of the group policy are the same for everyone insured under it.  Only the face amount will vary.
  4. The face amount of your policy can only be for the exact amount of your mortgage - no less, no more.
  5. The group coverage is always decreasing term insurance, declining as the mortgage declines.  Rates remain the same until mortgage renewal.
  6. The bank or the issuing company can cancel the group policy at any time.
  7. Group coverage will terminate upon the occurence of any of the following events:

    a) the mortgage is repaid
    b) the mortgage is assumed
    c) the house is sold
    d) the mortgage is in default
    e) the group policy terminates

  8. Group mortgage insurance is not convertable to permanent coverage.
  9. You must use a 'Joint Life - First to Die' policy for spouses/partners.  Surviving spouse must re-apply for new insurance at advanced age.  Only one limit paid if "common" death occurs.
  10. Face amount declines as mortgage is paid


  1. You purchase an individual personal policy owned by you.
  2. Because you own the policy, you have complete control over it.
  3. With a personal individual policy you may select the type of plan you wish with the features and provisions you require.  The choice is yours.
  4. You may purchase any amount of coverage you require.
  5. You may purchase any kind of insurance, whether permanent or term, level or decreasing.  The choice is yours.
  6. An individual policy cannot be canceled unless you wish to cancel it yourself.
  7. Your individual policy may be continued as long as you wish.  It is a portable plan that can be used to cover any mortgage anywhere.  (Statistics Canada reports that the average Canadian family moves once every five years.)
  8. An individual term policy may be converted regardless of health, usually until at least age 65.
  9. You may choose a "Multi Life" policy.  Each spouse/partner is insured individually.  Twice the limit paid if "common" death occurs.  Surviving spouse retains coverage.
  10. Face amount remains constant for the duration of the term.


Get Real Insurance, Not Promises

Drawbacks of Bank-Promoted Mortgage Life Insurance

This article from The Star provides you with information about the drawbacks of bank-promoted mortgage life insurance.