Insurance is definitely not the most exciting topic in the world. On the other hand, if you were told that you are probably paying too much for your mortgage insurance and that you could get more for your money, it becomes more interesting, right?
Everyone wants to have the best product at the most competitive price.
That is perfectly normal.
When it comes to protecting one’s family and covering one’s mortgage, however, many homeowners choose an option that is not optimal.
Mortgage insurance is not necessarily the most appropriate product to cover your mortgage in the event of death.
But the good news is that even if you have one and you realize that you are paying too much, you can change your insurance at no cost or penalty at any time!
We will be explaining why you may be paying too much for your mortgage insurance and how you can change at any time to save money.
Are you paying too much for your mortgage insurance? It is very likely!
We never really know if we are paying the right price for our insurance, right?
If you suspect that you are paying too much for your mortgage insurance, you should know that you may be right.
When we accept a mortgage loan from a bank, it will always offer mortgage insurance for protection.
That’s when most people, happy to get their loan, make a mistake and accept conditions without taking the time to compare other options.
In fact, bank mortgage insurance is good but the reality is that they are not OPTIMAL products that provide you with maximum benefits.
In Quebec, even financial planners, the most proficient professionals in personal finance, do not recommend mortgage insurance to their clients but rather propose life insurance!
Why is it likely that you are paying too much for your mortgage insurance from your bank?
Banks are not insurance companies.
They invest less time, money, and energy in their client classification and charge higher premiums to better manage their risks.
What does it mean in English?
By and large, low-risk and healthy clients usually pay too much while higher-risk clients pay too little.
If you pay too much, know that you can reverse the situation!
Further, be advised that mortgage insurance from banks is not the same as mortgage default insurance which is mandatory if your down payment is less than 20%.
Get a better understanding by referring to mortgage life insurance – rights and responsibilities from the Financial Consumer Agency of Canada.
Contrary to what you may think, you do not have handcuffs that hold you prisoner in your bank. Your insurance contract does not require you to stay with your bank for a fixed term.
YOU CAN THEREFORE CANCEL AND CHANGE YOUR MORTGAGE INSURANCE WITHOUT PENALTY AT ANY TIME!
Yes, you can simply contact your bank to terminate your insurance. We recommend, however, that you take out new insurance before canceling your existing mortgage insurance to avoid risks.
Shop around and make sure you have your new insurance before ending your current one.
The thing to remember here is that you do not have to pay penalties or hidden fees if you want to change insurance.
As mentioned earlier, there is a good chance that you will pay too much if you accept the mortgage insurance of your bank.
It is always recommended to shop around and take the time to compare different offers or even different products.
We then established that financial planners generally recommend life insurance as a solution to their client wishing to cover their mortgage in the event of death.
We have explained that even if you have mortgage insurance right now, you can still change it at ANY TIME without any fees or penalties!
Nothing is holding you back!
What are you waiting for to cancel your current contract and change your mortgage insurance?
If you are not already convinced, the following chart will clearly show you all the benefits and potential savings that Life Insurance VS Mortgage Insurance offers.
In order to show you, once and for all, that life insurance is more advantageous than mortgage insurance, we have created a very simple but revealing summary of the two products!
The table below presents the different features of life insurance compared to mortgage insurance.
Aside from the lower cost of life insurance, you will find that it is a much better product in terms of benefits!
|Life Insurance||Mortgage Insurance|
|The coverage is constant no matter what your mortgage balance is||The amount of coverage is based on the balance of your mortgage|
|You can choose the amount of insurance you want||Your insured amount is the initial amount of your mortgage|
|You can choose your beneficiaries||The bank/lender is your beneficiary|
|Insurance premiums are based on age, health and other factors to get the best price for you.||Insurance premiums are the same for all clients of the same or almost the same age.|
|You can change or move your mortgage to another bank without consequences.||If you change your mortgage or bank, you need to apply for new insurance|
|Your insurance coverage remains in place as long as you pay the premiums.||Your insurance coverage disappears when your mortgage is repaid.|
|Your insurance benefits your family.||Your insurance benefits your bank.|
If you had to make a choice, which product would you choose?
Are you also wondering which life insurance company is the best? Check out the top 20 life insurance companies in Canada who can offer life insurance to protect your mortgage.
Want to see if you are paying too much?
Compare your current insurance with other life insurance products.
Remember that you can change at any time, so why not do it now?
Just fill out our free online request form and we’ll put you in touch with one of our life insurance partners.
He will be able to look at your current insurance and present alternatives which will cost you less and provide you with better coverage!
No cancellation fees, no penalty to cancel your current mortgage insurance!
Do not wait any longer and fill out the form on this page to save money and speak with one of our life insurance partners!
Just fill out the following form to get an insurance quote according to your needs and budget.