What is bank mortgage insurance?

Bank mortgage insurance is a group creditor insurance policy sold by your lender when you take out a mortgage. If you die, it pays the remaining mortgage balance directly to the bank. The coverage amount decreases as you pay down your mortgage, but the premium typically stays the same.

What's the difference between mortgage insurance and term life insurance?

Mortgage insurance pays the lender; term life insurance pays your family. Bank coverage shrinks as you pay down your mortgage while term coverage stays level. Term life is medically underwritten before issue, while many creditor policies verify health only after a claim.

Is bank mortgage insurance worth it?

For many homeowners, a personally-owned term policy provides more coverage for a lower monthly cost — often 30–50% less — while paying your family instead of the bank. Bank coverage can make sense when health issues make individual underwriting difficult. Compare your specific numbers before deciding.

Can I replace my bank's mortgage insurance with my own policy?

Yes. Bank mortgage insurance is optional and can be cancelled at any time. Most homeowners put a personal term policy in force first, then cancel the bank coverage, so there is no gap in protection.

Secure Life Canada

Bank mortgage insurance vs. your own policy — compare instantly.

See the real monthly cost difference, and how each one changes over the life of your mortgage. No email needed to see your numbers.

Your numbers

Five quick answers. Nothing gets sent anywhere — this runs entirely on your device.

Start here

Mortgage balance$

$50k$1.2M

Your age

1875

Years left on mortgage

1 yr35 yr

Smoker

Sex

Your coverage

What each option costs — and what each one still covers as the years go by.

Coverage over time

Your bank's coverage disappears. Your premium doesn't.

Drag the slider to any year and see exactly what each policy would still cover.

Bank covers

$450,000

Term covers

$450,000

Term (level)Bank (decreasing)

Year 0

Bank mortgage insurance

$95/mo

Coverage shrinks as you pay the mortgage down
Pays the bank — not your family
Health often reviewed after a claim

Decreasing

Personally-owned 20-yr term

$42/mo

Coverage stays level the entire term
Pays your family — they decide
Underwritten before you pay a cent

Level

Estimated difference

$53/mo

Over the term

$12,720

That's an estimate. Want the real figure from your bank's actual rate table?

Grow your money

If you kept the difference instead of handing it to the bank, here's what it could become.

If you invested the difference

The same money, working for you instead.

$19,400

after 25 years at 4.0%

Assumed return4.0%

Hypothetical illustration only. Not a projection, guarantee, or offer of any investment product. Assumes the monthly difference is invested at the selected annual rate, compounded monthly, with no fees or taxes.

What to do next

These are estimates. Your real numbers take about two minutes.

Want your exact number?

Get your free Mortgage Protection Audit — your bank's actual rate vs. a real quote, side by side, in your inbox within 24 hours. If the bank's plan wins, we'll tell you that too.

Same event. Very different coverage.

Why the two prices differ.

The coverage shrinks — the premium doesn't

Bank creditor insurance pays down whatever's left on your mortgage. So the payout falls every year as you pay it down, while you keep paying the same premium. A term policy stays level the whole term.

The bank is the beneficiary — not your family

Their plan pays the lender, clearing the mortgage. A personally-owned policy pays the people you name — who can use it for the mortgage, income, childcare, or anything else they need.

Underwritten when you claim — not when you buy

Some creditor policies only confirm eligibility after a death. A personally-owned policy is underwritten up front, so your coverage is settled and in force long before it's ever needed.

✓

Already have coverage through your bank? Switching is simple. A personally-owned policy is completely separate from your mortgage — you put the new coverage in place first, then cancel the bank's. Your rate, your lender, and your relationship with the bank all stay exactly the same. The bank never has to be involved.

Before you request your audit

Common questions.

Is this really free? What's the catch?

Yes — the audit is free and there's no obligation. I'm a licensed advisor; if you decide to set up your own coverage, I'm paid by the insurer, not by you. And if your bank's plan genuinely is your best option, the audit will tell you that plainly.

I already have the bank's mortgage insurance — is switching a hassle?

Not at all. A personally-owned term policy is completely separate from your mortgage and your lender. You put the new coverage in place first, then simply cancel the bank's — nothing about your mortgage, your rate, or your relationship with the bank changes. The bank never has to be involved.

Will requesting this flood me with calls and emails?

No. You'll get your comparison and a short note confirming one detail so I can make the numbers exact. That's it — no call centre, no daily emails. You choose whether to take it further.

I already have life insurance through work — isn't that enough?

It's a good start, but group coverage usually ends when the job does, and it's often a flat amount that wasn't sized to your mortgage. The audit shows whether your current coverage actually covers the balance your family would be left with.

How fast do I get the audit, and what do you need from me?

Within 24 hours. The calculator already captures most of what I need — balance, age, and a few basics — so the request itself takes about two minutes. Your personalized comparison comes back by email.

Ready to see your real numbers?

Your bank's actual rate against a real quote, side by side, within 24 hours. No obligation — and if the bank's plan wins, we'll tell you that plainly.

Free · No pressure · Licensed Alberta advisor

Estimates use representative published creditor-insurance rate bands and illustrative Canadian term-life rates; they are for comparison only and are not an offer of insurance, a quote, or a guarantee of insurability or premium. Actual rates depend on age, health, smoking status, coverage amount, lender, and insurer underwriting. Insurance products offered through licensed advisors. Martin Kajuk, Licensed Life Insurance Advisor, Alberta.