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Mortgage Life Insurance vs. Personal Life Insurance

• The mortgagor owns your policy. 

• The insurance amount can only be the exact amount of your mortgage. 

• The mortgagor is the beneficiary. 

• Outstanding balance of the mortgage is paid upon death of insured. 

• Coverage reduces as the mortgage balance reduces but premiums are level.

• You may need to re-qualify if your mortgage is refinanced or transferred - rate based on current age. 

• Coverage terminates when your mortgage is paid off.

• Coverage is not portable if you change lenders. Submit new application based on current health and rates. 

• Coverage is not convertible to permanent insurance.

• If both insured clients die together, only the mortgage balance is paid.

• Generally, no distinction is made between smokers and non-smokers.

• You own your policy. 

• You may select any insurance amount. 

• You name the beneficiary. 

• Proceeds are paid to the beneficiary upon death of insured.

• Coverage may be maintained at original amount or reduced as you choose. 

• You may never have to re-qualify. 

• Coverage remains in place once your mortgage is paid off.

• Coverage is portable if you change lenders - no need to re-apply to prove your insurability. You are protected from the risk of losing your insurance because of change in health. 

• If both insured clients die together, both policies are paid (double coverage). 

• Your rates will be based on your smoking status.


For a Mortgage life insurance quote or to be referred to a licenced Life Insurance broker please contact my office in Nanaimo at:

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