Bank Comparison
Scotiabank Mortgage Life Insurance:
Is It Worth It?
Scotiabank charges approximately $82.00/month. the highest among Canada's Big Five banks. Over 20 years on a $500K mortgage, that's $19,680 for declining coverage.
Scotiabank Monthly
$82.00
per month
20-Year Total
$19,680
for declining coverage
You Could Save
$11,280–$13,680
with term life
Scotiabank vs. Independent Term Life
Based on a 35-year-old non-smoking woman, $500K mortgage, 20-year term.
| Feature | Scotiabank | Term Life |
|---|---|---|
| Monthly Premium | $82.00 | $25–$35 |
| 20-Year Total Cost | $19,680 | $6,000–$8,400 |
| Coverage Type | Declining | Level (stays at $500K) |
| Beneficiary | The Bank | Your Family |
| Underwriting | Post-Claim | Full (Upfront) |
| Portable? | No | Yes |
| Can Be Denied After Death? | Yes | No |
What Scotiabank Won't Tell You About Their Mortgage Insurance
Scotiabank charges the highest mortgage life insurance rate among the Big Five at approximately $82.00/month for a $500K mortgage. nearly 3x the cost of independent term life.
Scotiabank is the beneficiary of the policy. Your family receives nothing directly. the payout goes to pay off the mortgage balance.
Post-claim underwriting means Scotiabank reviews your health history after you pass away, creating risk that your family's claim could be denied.
Not portable. If you move your mortgage to another lender, your Scotiabank mortgage insurance is cancelled.
Scotiabank Mortgage Life Insurance — Frequently Asked Questions
Does Scotiabank offer life insurance for mortgages?
Yes. Scotiabank offers mortgage life insurance as part of its ScotiaLife Financial creditor insurance products. If you die, it pays off your remaining mortgage balance — but Scotiabank is the beneficiary, not your family. Coverage declines as you pay down the mortgage, while your premium stays the same.
How much does Scotiabank mortgage life insurance cost?
Scotiabank mortgage life insurance costs approximately $82.00/month for a $500K mortgage for a 35-year-old non-smoking woman — the highest rate among Canada's Big Five banks. Over 20 years, that's $19,680. Independent term life for the same coverage typically costs $25–$35/month.
Is Scotiabank mortgage insurance worth it?
For most Canadians, no. Scotiabank mortgage insurance has the highest rate of the Big Five banks, declining coverage, and uses post-claim underwriting — meaning your family's claim could be denied after your death if Scotiabank finds any undisclosed health history. Independent term life is almost always a better value.
Can I cancel Scotiabank mortgage life insurance?
Yes. You can cancel Scotiabank mortgage insurance at any time without penalty. Make sure your replacement term life policy is active before cancelling to avoid a coverage gap. Contact Scotiabank in writing or through your branch to cancel.
What's better than Scotiabank mortgage insurance?
Individual term life insurance costs roughly one-third of what Scotiabank charges — $25–$35/month vs. $82/month for a 35-year-old non-smoker. With term life, your family is the beneficiary and receives the full $500K regardless of your mortgage balance. Coverage is fully underwritten upfront, eliminating post-claim denial risk.
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