Creditor Insurance

Mortgage Insurance is an insurance policy which compensates the mortgage lender (often the bank) for the balance of the remaining mortgage at the time of the death of the insured home owner. These are usually offered for sale directly by the mortgage lender…however if it is done through an insurance company we can save you money and pay off mortgages sooner!
Often the insurance that banks offer to protect loans and mortgages is more expensive than individually owned insurance policies done through an insurance company. With bank insurance the insurance only covers the balance of the loan and yet the premiums remain the same throughout the life of the debt. These policies are not portable and if you switch lenders or increase your mortgage balance through re-financing, you will have to reapply for the coverage and qualify medically when done with the bank.
An interesting news story by CBC Marketplace regarding Bank Mortgage Insurance is available here.