Mortgage Life Insurance vs. Term Life Insurance
Buying a home often creates the largest debt a family will ever take on.
That naturally raises an important question:
What happens to the mortgage if you die?
Two products are commonly considered:
Mortgage life insurance
and:
Term life insurance.
Both can help protect a household from the financial impact of a homeowner’s death, but they work very differently.
The most important distinction is simple:
Mortgage life insurance is generally designed to pay the remaining mortgage balance to the lender.
Term life insurance pays a chosen death benefit to the beneficiary you name.
The Financial Consumer Agency of Canada, or FCAC, explains that mortgage life insurance is an optional product that may pay the outstanding mortgage balance directly to the lender when the insured borrower dies. By comparison, term life insurance pays a death benefit to the beneficiary selected by the policyholder, who can generally decide how to use the money.
That difference can dramatically affect:
Control
Flexibility
Value
and:
How much protection your family ultimately receives.
Quick Comparison
| Feature | Mortgage Life Insurance | Term Life Insurance |
|---|---|---|
| Main purpose | Pay off remaining mortgage | Provide cash to chosen beneficiaries |
| Beneficiary | Usually mortgage lender | You choose beneficiary |
| Death benefit | Usually decreases with mortgage balance | Usually remains level during term if level coverage is selected |
| Premium | Often remains similar even as balance declines | Usually fixed for selected term, depending on policy |
| Portability | Often tied to mortgage/lender | Usually follows you personally |
| Family controls proceeds | Usually no | Yes |
| Can cover other financial needs | Limited | Yes |
| Separate from mortgage? | Usually linked to mortgage | Yes |
| Optional in Canada? | Yes | Yes |
| Best for | Convenience and direct mortgage payoff | Broader family financial protection |
FCAC specifically notes that as the mortgage is paid down, mortgage life insurance generally covers a smaller amount, while premiums generally remain the same. It also notes that term or permanent life insurance may provide better value because the death benefit does not decrease during the policy term.
What Is Mortgage Life Insurance?
Mortgage life insurance is a form of:
creditor insurance.
It is often offered when you:
Take out a mortgage
Renew a mortgage
or:
Refinance a mortgage.
Its purpose is usually straightforward:
If the insured borrower dies while the policy is in force, the insurer may pay the remaining mortgage balance to:
the mortgage lender.
This can allow the surviving family to remain in the home without having to continue making the same mortgage payments.
FCAC describes mortgage life insurance as an optional insurance product that may pay the remaining mortgage balance to the lender on death.
Is Mortgage Life Insurance Mandatory in Canada?
No.
This is extremely important.
Mortgage life insurance is:
optional.
A lender cannot require you to purchase optional mortgage life insurance simply to approve your mortgage.
FCAC states clearly that borrowers do not need to buy optional mortgage insurance in order to qualify for a mortgage, and lenders must obtain express consent before providing it.
This is different from:
mortgage loan insurance.
Mortgage Life Insurance Is Not Mortgage Default Insurance
These two are often confused.
Mortgage Life Insurance
Protects against the financial consequences of:
your death.
Mortgage Loan Insurance
Also called:
mortgage default insurance.
This protects the:
lender
if a borrower defaults on a qualifying high-ratio mortgage.
FCAC explains that mortgage loan insurance is generally required when the down payment is less than 20% of the home’s purchase price, while mortgage life insurance is an optional product.
They are completely different products.
How Mortgage Life Insurance Works
Imagine you purchase a home with a:
$600,000 mortgage.
You buy mortgage life insurance through your lender.
Ten years later, your mortgage balance has fallen to:
$430,000.
If you die while the coverage remains valid, the benefit would generally be based on:
the outstanding mortgage balance.
That means the benefit might be approximately:
$430,000
rather than the original $600,000.
The money generally goes:
directly to the lender.
Your family receives the benefit indirectly because:
the mortgage is reduced or eliminated.
The Death Benefit Usually Shrinks
This is one of the biggest differences between mortgage life insurance and term life insurance.
With mortgage life insurance:
the insured debt decreases over time.
Therefore:
the death benefit typically decreases as well.
FCAC explicitly notes that mortgage life insurance coverage becomes smaller as borrowers make mortgage payments and reduce the outstanding balance.
But:
the premium may generally remain the same.
So you may continue paying a similar premium while receiving:
less insurance protection.
Example: Declining Mortgage Life Benefit
Suppose your mortgage begins at:
$500,000.
Over time:
| Year | Approx. Mortgage Balance | Approx. Mortgage Life Benefit |
|---|---|---|
| Start | $500,000 | $500,000 |
| Year 5 | $445,000 | $445,000 |
| Year 10 | $370,000 | $370,000 |
| Year 15 | $270,000 | $270,000 |
| Year 20 | $145,000 | $145,000 |
These figures are purely illustrative.
The important concept is:
the coverage follows the outstanding mortgage.
If the mortgage decreases, the insurance benefit generally decreases.
Who Receives the Money?
With mortgage life insurance:
the lender is generally the beneficiary.
FCAC states that the mortgage lender receives the death benefit rather than the borrower’s family or heirs.
Your family typically doesn’t receive:
a lump-sum cheque.
Instead, the insurer applies the benefit toward:
the mortgage.
That can be very useful if your family’s primary goal is:
keeping the house.
But it provides less flexibility if your family also needs money for:
Food
Childcare
Education
Utilities
Other debts
Funeral expenses
or:
Income replacement.
What Is Term Life Insurance?
Term life insurance is personally owned life insurance that provides coverage for:
a specified period.
Typical term lengths include:
10 years
20 years
25 years
or:
30 years.
Some policies instead provide coverage until:
a certain age.
FCAC explains that term life insurance pays a death benefit if the insured person dies during the term. If the insured survives beyond the term and does not renew or convert coverage, the policy ends without a death benefit.
How Term Life Insurance Works
Suppose you buy:
$750,000
of 25-year level term life insurance.
You name your spouse as:
beneficiary.
If you die during the covered term:
your spouse receives the death benefit.
If the policy is structured as level term coverage, that amount generally remains:
$750,000
throughout the term.
Your spouse may then decide to:
Pay off the mortgage
Pay only part of the mortgage
Invest some of the money
Cover household expenses
Fund children’s education
or:
Replace lost income.
That flexibility is one of the strongest advantages of personally owned term life insurance.
The Beneficiary Controls the Money
This is the central difference.
Suppose your remaining mortgage is:
$350,000.
Your term life policy pays:
$750,000.
Your spouse might use:
$350,000 to eliminate the mortgage
and retain:
$400,000
for other household needs.
With mortgage life insurance, the benefit would normally be designed primarily to:
pay the mortgage lender.
FCAC notes that term-life beneficiaries can use the proceeds for any purpose.
Side-by-Side Example
Consider two homeowners.
Both have:
$500,000 mortgages.
Both die after 12 years.
By that point, each mortgage balance has fallen to:
$320,000.
Homeowner A — Mortgage Life Insurance
The policy benefit is based on:
$320,000 remaining mortgage.
The lender receives the money.
Mortgage balance:
paid.
Additional insurance money for family:
$0 from that policy.
Homeowner B — $500,000 Level Term Life Insurance
The beneficiary receives:
$500,000.
They can choose to pay:
$320,000
toward the mortgage.
Remaining funds:
$180,000.
Those funds might help cover:
Living expenses
Childcare
Education
or:
Loss of income.
This illustrates why term life can provide:
broader financial protection.
Mortgage Life Insurance Premiums
Mortgage life insurance premiums are commonly based on factors such as:
Your age
and:
The initial mortgage amount.
FCAC states that premiums are generally added to mortgage payments and usually remain the same even as the mortgage balance decreases.
That creates an unusual relationship:
Same premium → declining benefit.
Over time, your cost per dollar of remaining coverage can effectively increase.
Term Life Insurance Premiums
Term life insurance pricing typically considers factors such as:
Age
Health
Smoking status
Coverage amount
Term length
and:
Underwriting classification.
FCAC notes that life-insurance pricing may also reflect gender and medical history, depending on the insurer and applicable underwriting practices.
For level term coverage:
the premium is typically guaranteed for the selected term.
At renewal:
the premium may increase substantially.
FCAC notes that renewable term policies often become more expensive when renewed at older ages.
Is Mortgage Life Insurance Cheaper?
Not necessarily.
Mortgage life insurance can seem inexpensive because it’s:
convenient.
But comparing premium alone can be misleading.
Compare:
how much coverage remains.
A mortgage life policy may begin with:
$500,000.
Years later, you may still pay a similar premium for:
$250,000 of remaining coverage.
A term life policy might still provide:
the original $500,000 benefit.
FCAC explicitly states that term or permanent life insurance may provide better value than mortgage life insurance.
That doesn’t mean term life will always be cheaper for every individual.
Health history and underwriting can change the comparison.
Mortgage Life Insurance Is Usually Easier to Buy
One reason borrowers choose mortgage insurance is:
convenience.
When signing mortgage paperwork, you may be offered coverage almost immediately.
The application can feel simple.
Depending on the product:
health questions may be limited.
For someone with medical conditions who struggles to obtain traditional individually underwritten coverage, creditor insurance may therefore deserve consideration.
But simplicity shouldn’t replace:
understanding the policy.
FCAC advises consumers to examine the coverage conditions, limitations and exclusions before purchasing optional mortgage insurance.
Underwriting Can Work Differently
Traditional term life insurance generally evaluates:
your insurability when you apply.
Depending on the insurer and coverage amount, underwriting may involve:
Medical questions
Prescription-history review
Lifestyle questions
Medical records
or:
Medical testing.
Once approved and issued, the policy is based on that underwriting decision, subject to contract terms and contestability provisions.
Mortgage creditor insurance can use a different process.
Some products may involve:
eligibility questions at enrolment
and additional assessment when a claim occurs.
This is often referred to as:
post-claim underwriting.
Not every creditor product uses the same process, so review:
the actual certificate of insurance.
Portability: One of the Biggest Differences
Imagine you have mortgage life insurance through:
Bank A.
Five years later, you refinance or transfer your mortgage to:
Bank B.
Because creditor mortgage insurance is often tied to:
the mortgage
and:
the lender,
your existing coverage may not automatically follow you.
You may have to:
apply for new mortgage insurance.
And five years later:
you’re older.
Your health could also have changed.
Term Life Insurance Usually Follows You
Personally owned term life insurance generally isn’t tied to:
a specific mortgage lender.
Suppose you move your mortgage from:
Bank A
to:
Bank B.
Your term life policy can usually continue unchanged as long as:
you continue paying the premiums and meet policy terms.
This portability can be a major advantage.
Your insurance protects:
you,
not a particular mortgage.
What Happens If You Sell Your Home?
Suppose you sell a house before the mortgage is fully repaid.
Mortgage life coverage tied to that mortgage may:
end when the mortgage ends.
If you buy another home and take out a new mortgage, you may have to apply again.
A term life policy is different.
You can sell:
House A
buy:
House B
and generally keep:
the same personally owned policy.
What Happens If Your Mortgage Gets Smaller?
With mortgage life insurance:
your benefit generally gets smaller.
With level term life insurance:
the death benefit usually doesn’t.
That means term insurance can become increasingly valuable for other needs as:
your mortgage falls.
Suppose:
Original mortgage: $600,000
Term policy: $750,000
Twenty years later:
Mortgage remaining: $120,000
Term coverage remaining: $750,000, assuming the policy term is still active.
Your family could theoretically pay the mortgage and still have:
$630,000
for other financial needs.
But Bigger Isn’t Automatically Better
This doesn’t mean everyone should automatically buy:
the largest term policy possible.
Life insurance should reflect:
Income replacement
Debt
Dependants
Education goals
Existing assets
Employer life insurance
Savings
and:
Budget.
The goal isn’t:
maximum insurance.
It’s:
appropriate insurance.
Mortgage Life Insurance Can Still Make Sense
Mortgage life insurance isn’t necessarily a bad product.
It can be useful for people who prioritize:
simplicity.
It may make sense if:
You want coverage specifically tied to the mortgage
You value automatic mortgage payoff
You have limited need for broader family protection
You already have substantial life insurance elsewhere
or:
Traditional term coverage is difficult to obtain.
The mistake is not:
buying mortgage life insurance.
The mistake is buying it:
without comparing alternatives.
Term Life Insurance Can Be Better for Families
Term insurance often makes more sense when the household needs protection for more than:
the mortgage.
Suppose a family depends on one parent’s:
$90,000 annual income.
If that parent dies, eliminating the mortgage helps.
But the surviving household still has:
Groceries
Property taxes
Utilities
Childcare
Transportation
Education
and:
Everyday living costs.
Term life insurance can be sized to cover:
multiple financial needs.
Mortgage Life Insurance vs. Term Life for a Young Family
Imagine:
Couple age: 32 and 34
Mortgage: $600,000
Two young children
Major dependence on both incomes
Mortgage life insurance could:
eliminate or reduce the mortgage.
But term life insurance could potentially provide enough funds to:
Pay off the mortgage
Replace several years of income
Fund education goals
Cover immediate expenses.
For many young families:
the mortgage is only one part of the financial risk.
Mortgage Life Insurance vs. Term Life for a Single Homeowner
Now imagine:
Single homeowner
No children
No financially dependent relatives
Strong retirement savings
The primary concern may simply be:
preventing the mortgage from becoming a burden on the estate.
Mortgage life insurance might therefore be more appealing.
But even here:
term insurance deserves comparison.
It may still provide:
More portable coverage
A level benefit
and:
Greater beneficiary flexibility.
Mortgage Life Insurance vs. Term Life for Someone With Health Problems
This comparison can change significantly when health is involved.
Suppose a borrower has:
significant medical history.
A traditional term insurer might:
Charge more
Postpone coverage
or:
Decline the application.
If lender-offered mortgage insurance has easier eligibility requirements, it could provide:
useful protection.
But don’t assume approval automatically guarantees every future claim.
Read:
the eligibility requirements, exclusions and claim rules.
Can You Have Both?
Yes.
There’s nothing inherently wrong with having:
both mortgage life insurance and term life insurance,
provided the coverage is appropriate.
For example:
Mortgage life insurance: targeted mortgage payoff
and:
Term life insurance: income replacement and family needs.
But carrying both can also mean:
unnecessary duplicate premiums
if the term policy already provides enough protection.
Review total coverage rather than considering each product:
in isolation.
Don’t Forget Employer Life Insurance
Many employees already have:
group life insurance
through work.
Before buying mortgage insurance, FCAC recommends checking whether existing coverage through an employer or another policy already meets your needs.
But employer insurance has limitations.
Coverage may end or change if you:
Leave your job
Lose benefits
Retire
or:
Change employers.
Therefore, employer life insurance shouldn’t automatically be treated as:
a permanent substitute for personal coverage.
What If Your Family Could Sell the House?
Another important question is:
Must the mortgage actually be paid off after your death?
Not necessarily.
FCAC notes that a home can potentially be sold to repay the mortgage, meaning mortgage life insurance may not be necessary for every borrower.
For example:
A single homeowner dies with no dependants.
Their estate may simply:
Sell the home
Pay the mortgage
and:
Distribute remaining equity.
In that case, large mortgage-focused coverage may not be essential.
Term Life Can Cover More Than the Mortgage
A useful way to estimate term coverage is to consider:
Total financial obligations.
For example:
| Need | Amount |
|---|---|
| Mortgage | $450,000 |
| Other debt | $25,000 |
| Income replacement | $400,000 |
| Children’s education | $100,000 |
| Final expenses | $25,000 |
| Total need | $1,000,000 |
| Existing savings / coverage | -$250,000 |
| Approximate remaining need | $750,000 |
This is only an illustration.
The right amount depends on:
your household.
A mortgage-only policy would address just:
one part of this calculation.
Joint Mortgage? Think Carefully About Coverage
Suppose two spouses jointly owe:
$700,000.
Both incomes are needed to maintain:
the household.
A single mortgage policy might cover the mortgage balance depending on:
the insured borrowers and policy structure.
But a more complete life-insurance analysis should ask:
What happens if Person A dies?
and separately:
What happens if Person B dies?
The financial consequences may be:
very different.
Each person may need:
separate life insurance.
Should Both Partners Have Term Life Insurance?
Often, yes if:
the household would suffer financially from either person’s death.
Even a spouse with lower income or no employment may provide valuable economic contributions through:
Childcare
Household management
Transportation
and:
Other unpaid work.
Replacing those services could be expensive.
Life insurance need should therefore be based on:
financial impact,
not salary alone.
What Happens When the Term Ends?
Term life insurance isn’t automatically:
lifetime coverage.
When the term expires, options may include:
Letting the policy end
Renewing
or:
Converting to permanent life insurance
if the contract permits.
FCAC notes that some term policies can be renewed, but renewal premiums may rise substantially as the insured gets older.
That’s why the selected term should match:
the period of greatest financial risk.
Match the Term to the Mortgage—But Not Blindly
Suppose you have:
25 years remaining on your mortgage.
You might consider:
25-year term insurance.
That can be sensible.
But don’t choose the term solely because:
“My mortgage is 25 years.”
You might only need high coverage while:
Children are dependent
Income replacement matters most
or:
Other debts remain high.
Your insurance strategy should reflect:
your complete financial timeline.
What About Permanent Life Insurance?
Permanent life insurance can last:
for life,
provided policy requirements are met.
Examples include:
Whole life
and:
Universal life.
Permanent coverage can be useful for:
Estate planning
Long-term tax or legacy strategies
Final expenses
and:
Permanent insurance needs.
But it’s often considerably more expensive than comparable term coverage at purchase.
If your primary goal is:
protecting a mortgage for 20–30 years,
term life is usually the more direct product to compare with mortgage life insurance.
What Happens If You Refinance?
Mortgage life insurance may be tied to:
the existing mortgage contract.
If you refinance and create a new mortgage:
coverage conditions may change.
You might need to:
Reapply
Update coverage
or:
Purchase new insurance.
Term insurance generally continues independently of refinancing.
This makes term insurance particularly useful for homeowners who expect to:
refinance, move or change lenders.
Mortgage Life Insurance and Prepayments
Suppose you aggressively pay down your mortgage.
You make:
Annual lump-sum payments
and:
Accelerated biweekly payments.
Your outstanding balance drops faster.
That means your mortgage life insurance benefit may:
also shrink faster.
But the premium may generally remain unchanged.
With level term insurance:
the benefit stays the same.
This widens the difference between:
remaining mortgage debt
and:
available life-insurance proceeds.
Is Mortgage Life Insurance Worth It If You Plan to Move?
Potentially—but portability becomes more important.
Suppose you expect to:
move every five years.
Every time you switch homes or lenders, lender-based coverage may need:
reassessment.
A personally owned term policy can usually remain with you.
You may therefore avoid the risk of:
needing new underwriting later.
The Convenience Trap
Mortgage paperwork can be overwhelming.
You’re dealing with:
Purchase agreements
Inspections
Lawyers
Closing costs
Taxes
Mortgage documents
and:
Moving.
Then you’re asked:
Would you like mortgage insurance?
Checking:
“Yes”
can feel easy.
But life insurance is important enough that it deserves:
separate consideration.
Take time to compare:
Coverage amount
Premium
Beneficiary
Underwriting
Portability
Exclusions
and:
Family needs.
Questions to Ask Before Buying Mortgage Life Insurance
Ask your lender or insurer:
- What exactly does the policy cover?
- What is the current monthly premium?
- Does the premium change as the mortgage decreases?
- How is the death benefit calculated?
- Who receives the payment?
- Does coverage continue if I change lenders?
- What happens if I refinance?
- What happens if I sell the property?
- Are there age limits?
- What health questions apply?
- Are there exclusions for pre-existing conditions?
- Can coverage be cancelled?
- Is there a waiting period?
- How are claims assessed?
- Does the policy cover one borrower or both?
FCAC recommends reviewing the insurance certificate carefully because optional mortgage-insurance products can contain important coverage limitations.
Questions to Ask Before Buying Term Life Insurance
Ask:
- What death benefit do I actually need?
- How long should the term last?
- Is the death benefit level?
- Is the premium guaranteed during the term?
- Can I renew the policy?
- Can I convert it to permanent insurance?
- Who should be the beneficiary?
- Are there exclusions?
- Does my health affect the premium?
- Would separate policies for each spouse be better?
- Is employer coverage already included in my calculation?
- What happens if I move or change mortgage lenders?
Mortgage Life vs. Term Life: Which Gives More Control?
Mortgage Life Insurance
The benefit is designed primarily to:
pay the lender.
Term Life Insurance
The beneficiary generally receives:
the cash.
That means term coverage gives the family:
substantially greater control.
For many households, that’s a major advantage.
A surviving spouse may decide that immediately paying off the entire mortgage is:
not the best use of every dollar.
They may instead:
Continue regular mortgage payments
Keep emergency savings
Pay high-interest debt
or:
Invest part of the insurance proceeds.
Term insurance allows:
that choice.
Which Is Better?
There is no universal answer.
But for many families:
Term life insurance is usually more flexible.
It can provide:
Level coverage
Beneficiary choice
Portability
Broader financial protection
and:
A benefit that isn’t directly reduced as the mortgage falls.
FCAC itself notes that term or permanent life insurance may provide better value than mortgage life insurance.
Mortgage life insurance can still be appropriate when:
Simplicity is the priority
Mortgage payoff is the only major concern
You already have other life coverage
or:
Traditional coverage is difficult to obtain.
A Practical Decision Framework
Choose Mortgage Life Insurance When:
You primarily want:
the mortgage paid off automatically.
You don’t need significant additional family protection.
You value:
simplicity.
You have reviewed the exclusions and understand:
the decreasing benefit.
Consider Term Life Insurance When:
Your family needs:
Mortgage protection
plus:
Income replacement
Education funding
Debt repayment
Final expenses
or:
Financial flexibility.
You expect to:
Move
Refinance
or:
Switch lenders.
And you want:
your chosen beneficiary to control the proceeds.
Common Mistakes
1. Thinking Mortgage Life Insurance Is Mandatory
It isn’t.
FCAC says optional mortgage life insurance isn’t required for mortgage approval.
2. Confusing It With Mortgage Default Insurance
Mortgage default insurance protects:
the lender against borrower default.
Mortgage life insurance addresses:
the borrower’s death.
3. Comparing Premiums Without Comparing Benefits
A cheaper-looking product isn’t necessarily:
better value.
Look at how much coverage remains:
ten or twenty years later.
4. Protecting Only the Mortgage
Families need more than:
housing.
Consider lost income and other obligations.
5. Forgetting Portability
If you change lenders:
what happens to your insurance?
Ask before buying.
6. Assuming Your Employer Coverage Is Enough
Employer life insurance may disappear when:
employment changes.
7. Cancelling Existing Coverage Before New Coverage Is Approved
Never cancel an existing life policy merely because:
you’ve applied for a replacement.
Wait until the new policy has been:
approved and placed in force,
and review the replacement carefully.
Frequently Asked Questions
Is mortgage life insurance mandatory in Canada?
No. Mortgage life insurance is optional, and lenders cannot require you to buy it as a condition of approving the mortgage.
What happens to mortgage life insurance as I pay down my mortgage?
The benefit generally declines as your mortgage balance falls, while premiums usually remain the same.
Who receives mortgage life insurance money?
The mortgage lender is generally the beneficiary and receives the benefit to pay off the outstanding mortgage.
Who receives term life insurance money?
The beneficiary you name generally receives the death benefit if you die while the policy is in force.
Can my term-life beneficiary use the money for something besides the mortgage?
Yes. FCAC states that term or permanent life-insurance beneficiaries may generally use the proceeds for any purpose.
Does term life insurance get smaller as my mortgage decreases?
A standard level term policy generally keeps the same death benefit throughout the selected term.
Can I keep term life insurance if I switch mortgage lenders?
Generally yes, because personally owned term insurance is separate from the mortgage lender, provided the policy remains in force.
What happens to mortgage insurance if I change lenders?
Coverage tied to a particular mortgage or lender may not automatically transfer. Review the contract before switching.
Can I have both mortgage life and term life insurance?
Yes, although you should consider whether having both creates unnecessary overlapping coverage.
Which is cheaper?
It depends on your age, health, coverage and insurer. Mortgage life insurance shouldn’t be assumed cheaper simply because it’s offered with the mortgage.
Which provides better value?
For many healthy applicants, level term coverage can provide stronger long-term value because the death benefit can remain constant while a mortgage-life benefit decreases. FCAC also notes that term or permanent life insurance may provide better value than mortgage life insurance.
Key Takeaways
Mortgage life insurance and term life insurance can both help protect a household after:
a homeowner dies.
But they are built differently.
With mortgage life insurance:
The lender generally receives the benefit.
Coverage usually declines as the mortgage is paid down.
Premiums generally remain the same despite the shrinking balance.
Coverage may be tied to the mortgage or lender.
With term life insurance:
You choose the beneficiary.
Level coverage can remain unchanged during the term.
The beneficiary decides how to use the money.
Coverage generally follows you even if you change lenders or homes.
For families that need protection for:
more than just the mortgage,
term life insurance often provides:
greater flexibility.
For homeowners seeking a simple product specifically intended to eliminate the mortgage, lender-offered mortgage life insurance may still be useful.
The best choice is the one that protects:
your household’s full financial needs,
not simply the loan balance.
Disclaimer
This article is for general educational purposes and does not constitute individualized insurance, financial, tax or legal advice. Mortgage-insurance terms, underwriting, exclusions, premiums and claims procedures vary by lender and insurer. Review the policy or certificate carefully and consider speaking with a licensed Canadian insurance professional before purchasing or replacing coverage.