Is Your Bank Overcharging You for Mortgage Insurance?
Most Canadians pay $10,000+ more than they need to for mortgage life insurance. Find out in 60 seconds how much you could save.
The Problem
What Your Bank Doesn't Want You to Know
Bank mortgage life insurance is one of the worst financial products sold in Canada. Here's why.
Declining Coverage
Your coverage shrinks every month as your mortgage balance decreases. But your premium stays exactly the same. You pay the same for less and less protection.
Bank Is the Beneficiary
If you die, the payout goes straight to the bank — not your family. Your spouse has no choice in how the money is used. The bank gets paid, your family gets nothing extra.
Post-Claim Underwriting
Banks don't fully underwrite your application up front. They review your health after you die. This means your claim can be denied when your family needs it most.
The Solution
Independent Term Life Insurance
For a fraction of the cost, you get better coverage that actually protects your family.
Level Coverage
Your $500K stays $500K the entire term. It never decreases. As your mortgage shrinks, the gap becomes extra protection for your family.
Your Family Is the Beneficiary
The full payout goes directly to your family. They decide whether to pay off the mortgage, cover living expenses, or fund education.
Fully Underwritten Up Front
Your health is assessed before your policy is issued. Once approved, your claim can't be denied. No surprises for your family.
Bank Mortgage Life Insurance
$68–$82/mo
- Coverage declines with your mortgage
- Bank is the beneficiary, not your family
- Claim can be denied after death
- Not portable — lose it if you switch banks
Total over 20 years: $16,000–$19,680
Independent Term Life
$25–$35/mo
- Coverage stays at $500K the whole time
- Your family is the beneficiary
- Fully underwritten — can't be denied later
- Portable — keeps coverage regardless of lender
Total over 20 years: $6,000–$8,400
Typical savings over 20 years
$10,000 – $13,000+
Real Bank Rates vs. Term Life
Based on a 35-year-old non-smoking woman with a $500K mortgage, 20-year term.
| Provider | Monthly | 20-Year Total |
|---|---|---|
| TD Bank | $67.66 | $16,238 |
| CIBC | $70.00 | $16,800 |
| BMO | $72.00 | $17,280 |
| RBC | $75.60 | $18,144 |
| Scotiabank | $82.00 | $19,680 |
| Term Life (Independent) | $25–$35 | $6,000–$8,400 |
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Stop Paying More for Less Coverage
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