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Canadian Mortgage Life Insurance
Traditional mortgage life insurance available through banks has a variety of deficiencies when compared to an individual life insurance policy. For example:
  • Insurance pays the bank, not your beneficiaries.Mortgage life insurance is 'decreasing term' insurance. Your premiums stay level but the amount of insurance decreases with your mortgage balance.
  • Your mortgage life insurance is up for renewal every time your mortgage is up for renewal. Become uninsureable, and you will have a problem the next time your mortgage is up for renewal.
  • Generally speaking, mortgage life insurance costs more than an individual term life insurance policy.
All in all, you may be better off (and pay less) with a traditional term life insurance policy when comparied to a mortgagel life insurance policy. Shop it out and see for yourself.


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