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Protect your mortgage with complete mortgage insurance

If you own your own home, the chances are that you have a mortgage with a leading financial institution and have insured the balance of the mortgage against your death and possibly that of your spouse as well.

Most homeowners assume that this is the best way to insure their mortgage. In most cases, this is simply not the case.

Please watch this poignant and powerful video produced by CBC's Marketplace Show in 2009, which highlights the pitfalls and risks of purchasing a bank sponsored mortgage creditor insurance product instead of a life insurance product.

Click here to read an article in The Star about how banks put pressure on mortgage borrowers to take their life insurance but don't explain the consequences of answering questions quickly.

For further information about the drawbacks of bank creditor insurance vs. traditional life insurance please read this Toronto Star article on this topic

Consider the following facts about bank mortgage insurance:

  • Bank mortgage coverage decreases as you pay off your mortgage while the premium remains constant. This represents a creeping increase in the cost.
  • Bank mortgages are often renegotiated. Often better deals are found with lenders other than the original one. When this happens, a new mortgage insurance must be purchased at an older age and with fresh insurability requirements.
  • Bank coverage is not transferable nor convertible to a more permanent insurance should the need arise.
  • Bank coverage makes the bank your beneficiary, not your spouse or estate. This removes the bankruptcy protection provided under normal life insurance.

What we can do for you:

  • We can add Critical Illness coverage to protect your home investment in the event of you or your spouse suffering a catastrophic illness.
  • You will receive a lump sum cash benefit when you survive 30 days from diagnosis of a critical illness including cancer, heart attack, stroke and other conditions.
  • Benefits are paid directly to you, not your beneficiary or mortgage lender
  • Payment is not dependent on your ability to work
  • Coverage is convertible to a long-term critical illness plan without medical requirements
  • Best Doctors and Helping Hands assistance services are available at no extra cost
  • Our team uses a computerized rate tracking program to ensure that you benefit from the lowest available rate in the Canadian market.

Click here for an in-depth look at the benefits of complete mortgage protection.

Bank Mortgage Insurance vs. Life Insurance:

Please review this article from CBC Marketplace, entitled "Mortgage insurance: Not always a sure thing". It clearly explains the difference between mortgage insurance through the bank vs. a licensed independent insurance advisor.

Bank InsuranceLife Insurance
Who sells the policy? Sold by lending institution.
(unlicensed representative)
Sold by licensed experts.
Who owns the policy? The bank owns the policy Insured owns the policy.
Who is the beneficiary? The lender is always the beneficiary. Upon death, the money is used exclusively to pay off the balance of the mortgage. Client can name a beneficiary who will have the option of repaying the mortgage or using the funds for a different need.
What happens as you pay off the mortgage? Fixed premiums for declining coverage. Fixed premiums for level coverage (pay for what you get).
What if you incur financial difficulties? Coverage will automatically terminate if the mortgage is in arrears. Policy will not lapse if mortgage is in arrears.
Will coverage continue to the surviving spouse? Coverage is paid on the first death, not both; coverage can not be continued for survivor Spouses may own individual policies; upon the first death, coverage on surviving spouse continues.
What about disability protection? Disability protection is rarely available. Disability protection is available.
What happens if you sell? Coverage will terminate upon cancellation of the mortgage. Coverage is fully portable, and can continue as long as the client wishes.
Who has control of policy? The client has no control over the policy. The client controls all the policy options.
Is coverage transferable? Cancelled after mortgage is paid off or transferred Continues regardless of which lending institution you deal with.
Are there limits? The face amount of the policy cannot exceed the exact amount of the mortgage, maximum of $250,000. Client may purchase any amount of coverage.
Who services the policy? Serviced by the lender. Serviced by personal licensed insurance expert.

Contact a Link Insurance representative to learn more

Referral Fee Program available to Mortgage Brokers and Real Estate Agents. Please email Tamara Adamson for further details.

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