Mortgage Insurance — Personally Owned Coverage
Level benefits, portability, and beneficiary control — personally-owned mortgage protection that beats bank coverage. Michael compares options across multiple carriers.
Your family deserves coverage they control — not insurance that benefits the bank.
What is mortgage insurance?
Mortgage insurance protects your family from losing their home if you pass away while owing money on your mortgage. But there is an important distinction most homeowners do not understand: bank-issued mortgage insurance and personally-owned term life insurance are not the same — and personally-owned coverage is almost always better.
When you accept mortgage insurance from your bank, the policy belongs to the bank. The death benefit decreases as you pay down your mortgage, but your premiums stay the same. If you die, the benefit goes directly to the bank to pay off the remaining balance — your family has no say in how the money is used.
With personally-owned term life insurance sized to your mortgage, the death benefit remains level throughout the term. You own the policy, name your own beneficiaries, and maintain coverage even if you change lenders or refinance. Your family receives the funds directly and decides how to use them — whether that means paying off the mortgage, covering living expenses, or both.
The cost is often comparable, sometimes even lower, because you are dealing with competitive insurers rather than group coverage through a bank. Michael compares options across multiple carriers to find the best mortgage protection value for your situation.
Quick Reference
Is this right for you?
New homeowners
First-time buyers who need coverage but want better value than bank insurance.
Refinancing homeowners
Those with existing mortgages reviewing their protection options.
Those with bank insurance
People who realize their current coverage may not be optimal.
Self-employed professionals
Those who may face challenges with bank post-claim underwriting.
Homeowners with health concerns
People who want coverage locked in now through proper underwriting.
Real estate investors
Those with multiple properties needing structured protection.
How it works
Mortgage Analysis
We review your mortgage balance, remaining term, and overall coverage needs.
Coverage Design
Michael recommends appropriate term length and coverage amount.
Carrier Comparison
We compare pricing across carriers to find optimal value.
Policy Placement
Complete underwriting secures your coverage — no surprises at claim time.
What to expect
What This Covers
- Full death benefit paid to your named beneficiaries
- Level coverage amount — does not decrease as mortgage decreases
- Portable — coverage continues if you change lenders
- Underwriting completed at application, not at claim
- Optional riders for disability and critical illness
- Conversion to permanent insurance without medical exam
×Common Exclusions
- ×Bank mortgage insurance often declines claims at time of death
- ×Bank coverage decreases while premiums stay constant
- ×Bank coverage ends when you pay off mortgage or switch lenders
- ×With bank coverage, you cannot name beneficiaries — bank receives funds
- ×Group underwriting may leave coverage disputed at claim time
- ×No conversion options with bank-issued coverage
Protecting Toronto homeowners with better mortgage coverage since 1999.
How we compare
Michael compares mortgage protection options across all major Canadian carriers: Manulife, Sun Life, Canada Life, RBC Insurance, iA Financial, Empire Life, and others. Each offers competitive term life products that can be sized to your mortgage.
Unlike bank mortgage insurance, which uses simplified group underwriting, personally-owned policies are individually underwritten at the time of application. This means your coverage is locked in — there are no surprises if your family needs to make a claim.
The independence to compare across carriers often reveals significant savings over bank coverage, with dramatically better policy terms. Michael shows you exactly how personally-owned coverage compares to what your bank offers.
Frequently asked
With personally-owned coverage: the death benefit stays level (doesn't decrease), you choose beneficiaries, coverage stays if you switch banks, and underwriting happens at application rather than claim time. Bank coverage often costs the same or more for decreasing protection with no portability.
Bank approval is often provisional — full underwriting may occur at claim time, meaning your family could face a denial when they need funds most. Personally-owned policies complete underwriting upfront, locking in your coverage.
Yes. Once your personally-owned policy is in force, you can cancel the bank coverage. Do not cancel bank coverage until your new policy is active and any contestability requirements are understood.
Most people match coverage to their mortgage balance or choose slightly more to cover closing costs and provide family transition funds. Michael analyzes your full financial picture to recommend appropriate coverage.
Typically, match the term to your mortgage amortization or the period until children are independent — often 20 or 25 years. If you plan to pay off your mortgage early, a shorter term may suffice.
Often no — and sometimes less expensive than bank coverage. Competitive individual underwriting frequently beats group rates, especially for healthy applicants.
You may also consider
Term Life Insurance
Comprehensive term coverage for all your family protection needs.
Learn MoreIICritical Illness Insurance
Lump-sum payment to cover mortgage if diagnosed with serious illness.
Learn MoreIIIDisability Insurance
Income protection to keep up mortgage payments if you cannot work.
Learn MoreLet's discuss mortgage insurance.
Reach out for a private consultation — no obligation.