One more reason to avoid mortgage life insurance – and a few exceptions to the rule
For most Canadians, a term life insurance policy is a much more suitable product
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Open this photo in gallery:For most Canadians, a term life insurance policy is a much more suitable product.Jirsak/iStockPhoto / Getty ImagesShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountThere are several good reasons to avoid mortgage life insurance. That’s coverage that promises to pay off your remaining mortgage balance if you die. Banks and mortgage brokers often pitch it when people sign a new mortgage.The main problem with it is that your premiums remain constant even as your coverage effectively shrinks as you gradually pay down your mortgage.Also, the policy is tied to the loan. If you switch lenders or refinance, your insurance is cancelled.
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