Is the mortgage insurance through the bank your best choice in the long run?
Find out more from our table of comparison.
Bank Mortgage Insurance
Personal Mortgage Insurance
Amount of Insurance
You can purchase an amount only to cover your mortgage.You can purchase more than an amount to cover your mortgage if required.
Terms of Coverage
You have the protection only while your mortgage is with this institution. If you refinance and more the mortgage, you have to buy new coverage.A personal policy is based on your life, and you have the protection no matter who holds the mortgage itself.
Premium Cost The cost per /$1,000 is increasing even through coverage decreases to keep in line with the mortgage balance. Renewal price ins not guaranteed.The option t guarantee renewal prices is available. The cost of personally owned policy varies little from the bank. Look at all the flexibility and benefits you receive.
Beneficiary Change Death benefit goes to the bank to pay mortgage - no alternative.The death benefit can be paid to any individual you name.
Change of Face Amount Coverage relates to mortgage amount and reduces as mortgage goes down.In some cases the death benefit can be indexed by CPI if desired.
Conversion Privilege No privileges to make changes.You can convert term to permanent insurance. Funding options available on permanent.
Accidental Death and Dismemberment Benefit There are no extra benefits available.Can add AD&D. Death death benefit can be increased if death is accidental, or a lesser amount paid, if a specified loss occurs such as loss of hand, etc.
Guaranteed Insurance Benefit Not available on bank term insurance.An option can be included on some plans which allows you to purchase additional insurance without medical evidence.
Disability Benefit In the case of disability, the loan payment will be waived.You can choose to receive a monthly income in an amount related to the amount of insurance purchased or you can purchase a separate Disability Income plan.
Tax Sheltering No cash values available for tax sheltering.If a plan has cash values, the growth is tax sheltered.