Personal Mortgage Insurance:

Insurance with a Bank or Mortgage Broker:

1.

You own your policy it’s a unilateral contract. You are the only one who can change or cancel your policy.

1.

The policy is a group policy and is controlled by the lender, who is the owner. The lender's insurer can cancel their group policy leaving you without any coverage.

2.

Your policy stays the same and the premium is guaranteed for the term of the policy regardless of how many times you refinance your mortgage or change lenders. Once approved you don’t need to qualify for the policy again.

2.

With most lending institutions your policy terminates when you refinance your mortgage. You will need to re-qualify medically and pay higher premiums.

3.

The policy is underwritten when you apply for coverage not at time of claim.

3.

The policy is underwritten at time of claim. The only thing you qualify for at time of application is to pay the premiums. If the lender changes their insurer for their group policy you may not qualify with the new insurer even though you qualified for the original policy. 

4.

Discounts on premium for a healthy person, you could save as much as 75%. Savings would allow you to pay of your mortgage faster saving thousands in interest.

4.

No discount on premium for a healthy person.

5. 

Term life insurance offered by most insurance companies is renewable and convertible.

5. 

Not guarantees to be renewable or convertible.

6. 

Premiums are guaranteed when the policy is issued, they remain the same for the duration or the term of the policy.

6. 

Your premium can increase depending on the claims experience of the group by the lender's insurance provider.

7. 

You choose the amount of coverage. Maximum sum insured can be higher than your mortgage.

7. 

The amount of coverage is equivalent to the amount of your mortgage balance.

8. 

The amount of coverage doesn't decrease unless requested, in which case the premium decreases proportionally.

8. 

As your mortgage balance decreases the amount of coverage (life, critical illness, disability) decreases proportionally with most policies, although the premium remains the same.

9. 

You can choose your beneficiary or beneficiaries.

9. 

The lender names itself as the beneficiary.

10.

You can keep your coverage after mortgage is paid off.

10.

Coverage terminates after you pay your final mortgage payment.

11. 

Your only obligation to keep your coverage is to pay your premium.

11. 

Any default on the payment of your mortgage is also a default on your insurance premium. With the majority of lenders after a default of 90 days your mortgage insurance coverage is cancelled.

12.

Critical illness insurance can be part of your coverage and can cover up to 25 illnesses or conditions.

12.

Critical illness insurance offered by lenders typically covers only three or four basic illnesses or conditions.

13.

Disability insurance can be part of your coverage.

13.

The majority of lenders no longer offer disability benefits with mortgage insurance. Lenders have terminated this coverage due to high claims. Disability is estimated to account for 50% of all foreclosures in Canada.

14. 

Your insurance coverage is fully portable wherever you move, or if you change lenders.

14. 

Your coverage may not be portable even with the same lender. If you switch lenders it is cancelled.

15. 

The majority of term life insurance policies are renewable and convertible to permanent insurance even if you are no longer insurable.

15. 

There is no option to convert your policy to permanent insurance.

16. 

The policy is underwritten before the policy is issued.

16. 

The policy is underwritten at time of claim, this is now illegal in some Canadian provinces.

17. 

You can purchase a disability waiver rider with your policy. This rider will pay your insurance premium in the event you become totally disabled.

17. 

There is no waiver option available on mortgage insurance with lenders.

18. 

Coverage can be in force with the payment of your first premium and/or a conditional insurance receipt or temporary insurance coverage receipt.

18. 

Please read fine print to see when the effective date of the coverage is in force. It may be the date the mortgage is approved or the closing date.

19. 

The insurance policy is in force for the duration of the term of the policy. 

19. 

The majority of policies terminate at age 65 leaving you uninsured.

20. 

You own your critical illness policy, it's a unilateral contact. You are the only one who can change or cancel your policy.

20. 

The policy is a group policy and is controlled by the lender, who is the owner. The lender's insurer can cancel the critical illness policy leaving you without any coverage.

21. 

All of Stone-Hedge Financial Group Inc. insurance brokers are licensed professionals that are trained and qualified to provide insurance advice.                                                                                                                                    

21. 

Loans officers are not licensed insurance brokers. They cannot, by law, provide you with insurance advice as they are not trained or qualified.