Mortgage life insurance pays off your mortgage if you die. Lenders offer “creditor” insurance at signing, but the benefit shrinks as you pay down the loan, it is payable to the lender, and it may be underwritten only when a claim is made. A personal term policy sized to your mortgage often costs less, keeps a level benefit, pays your family directly and moves with you when you switch lenders or renew.
Life insurance
8 min read
How Much Does Mortgage Life Insurance Cost in Canada? How Lender Premiums Are Calculated
Lender mortgage life insurance is priced as a monthly rate per $1,000 of the amount you borrow, set by your age band when you apply. Here is a worked example with CIBC's published rates next to Instasure term life estimates, and how to check your own numbers.
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