By Bridge Force Financial Group Inc.
Edited by Admin
Buying insurance from a Canadian insurance company vs a Canadian Bank: Is it the same product?
The short answer to this common question is no.
There are a host of differences between buying insurance from a Canadian insurance company vs a Canadian bank, some of these differences are highlighted below:
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Insurance Company
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Bank (Lending Institution)
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You own the policy and you name the beneficiaries.
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You are part of a group policy owned by the lender. The lender is the beneficiary.
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The benefit amount goes directly to your named beneficiaries. They decide how to use.
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The benefit amount goes directly to the lender and they pay off mortgage.
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The policy amount never changes. Your beneficiary receives benefit in the full amount of the policy.
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As your mortgage decreases the policy amount decreases, however, the premiums remain the same.
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Your payments and benefits are guaranteed for the life of the policy. You are the only one who can cancel the policy.
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Your payments and benefits are not guaranteed. The lender can change or cancel the policy at any time.
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When your mortgage is paid off, you can continue your coverage, convert, renew or cancel.
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When your mortgage is paid off, your policy ends.
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You are in control of your policy.
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The bank if in control of your policy.
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As you can see from this comparison (between buying insurance from an insurance company vs a bank), a policy bought from a Canadian Insurance Company sold by an Insurance advisor offers a more flexible, client centric product.
If you are in the market for mortgage insurance, please contact us and we can match you up with an advisor in your area.