Still paying for your bank’s mortgage insurance?
Many Ontario homeowners switch to personal term life insurance — often for less money, with coverage that doesn’t shrink and a payout the family controls.
Requesting a comparison is not an application for insurance and does not create coverage.
An honest comparison — even if the answer is “stay.”
We compare your bank coverage against personal term options on price, features, and protection. If switching isn’t a good fit, we’ll say so.
If switching is not a good fit for you, we will say so — happily.
We weigh features, flexibility, and the claims process — not just the premium.
A free comparison with zero obligation and zero follow-up ambush.
Bank mortgage insurance vs. personal term insurance
The two are often confused. Six differences that matter — each one side by side.
Who gets the payout?
The lender. The payout goes to the bank to pay down the mortgage. Your family never receives the money directly.
Your family. Your chosen beneficiary receives the money and decides how to use it — mortgage, bills, kids’ future.
What happens to the coverage amount?
It shrinks. As you pay down the mortgage, the coverage drops with it. Near the end, there may be almost nothing left.
It stays level. $500,000 on day one is still $500,000 in year 20 — for the full term you choose.
What happens to the price?
You pay the same for less. Premiums are often priced in age bands while coverage keeps shrinking — the same price for less and less protection.
Locked in. Your premium is set when you’re approved and stays level for the whole term.
What if you switch lenders?
It ends. The coverage is tied to that lender’s mortgage. Move your mortgage and you start over from scratch.
It follows you. Not tied to any mortgage or lender. It travels with you wherever you go.
When is your health checked?
Often at claim time. When your family needs the money most. Claims can be denied if the original answers were inaccurate.
Upfront. Fully underwritten before the policy is issued. You know you’re covered from day one.
Who owns the policy?
The bank’s product. The terms serve the lender. You can’t take it with you or change who benefits.
You do. You own it, control the beneficiaries, and can usually convert or renew it.
Three steps. No gaps in coverage.
The order matters. We never leave you unprotected in between.
Compare your options
Get a free quote and see what personal term coverage would look like next to your current bank coverage.
Apply and get approved
Apply for the personal term policy. Approval is completed before anything else changes.
Cancel the bank coverage
Only after the new policy is approved and delivered do you cancel the bank’s coverage.
Keep your bank coverage in place until the new policy is approved and delivered. Cancelling early would leave your family unprotected and could leave you unable to get new coverage at the same price.
Why personal term often costs less — and protects better.
Bank mortgage insurance premiums are often priced in age bands, while the coverage itself keeps shrinking as you pay down the mortgage — so you can end up paying the same price for less and less protection.
Personal term insurance works the other way: the coverage stays level, and the premium is locked in for the whole term. And we don’t stop at price — we compare features, service, and the claims process too, so you get the best value, not just the cheapest premium.
Actual pricing depends on your age, health, coverage amount, and term length. A side-by-side comparison is the only way to know for your situation — and it is free.
What happens to your coverage over 25 years?
Same starting coverage. Very different endings.
Illustrative. Your actual mortgage paydown schedule determines the exact bank coverage curve.
Questions about switching
Straight answers before you make a move.
Is bank mortgage insurance mandatory in Canada?
No. Bank mortgage insurance is optional — your lender may offer it, but you are not required to buy it. It is different from CMHC mortgage default insurance, which applies when your down payment is under 20%. That insurance protects the lender against default and cannot be replaced with a personal policy.
Can I cancel my bank mortgage insurance?
Yes. You can generally cancel bank mortgage insurance at any time without penalty. The safe way to do it is to keep the bank coverage until your new personal policy is approved and in force, then cancel.
What happens to bank mortgage insurance if I switch lenders?
It ends. Bank mortgage insurance is tied to that lender’s mortgage, so moving your mortgage means the coverage stops — and you would have to re-apply with the new lender. Personal term insurance is not tied to any mortgage, so it follows you no matter which lender you use.
Do I need a medical exam to switch?
Often not. Many personal term applications require only health questions. Whether an exam is needed depends on the coverage amount, your age, your health, and the insurer.
How long does switching take?
Typically days to a few weeks, depending on the insurer, the coverage amount, and underwriting requirements. Your bank coverage stays in place the whole time, so there is no rush.
Should I cancel my bank coverage first?
No. Never cancel your bank coverage before the new policy is approved and delivered. Keep both until the switch is complete so there is no gap in coverage.
Ready to see the difference?
Get a free, no-pressure comparison of your bank coverage and personal term options.
Compare my options →