Individual life insurance

• The insured owns the policy and is the only one who can make changes to the policy and can choose his own beneficiary (ies).
• The protected capital is based on a financial security analysis (other variables are considered, including taxation of the product and particularities of the mortgage transactions and not just the mortgage amount) and, therefore, you have the option to take out single life insurance dedicated to your needs.
• In individual life insurance, the protected capital and premium paid remain the same throughout the term of the contract.
• The underwriting process (medical analysis) for an individual life insurance policy is done at the beginning, during the application. Variables such as your age, gender, smoking or non-smoking rate and medical history are considered when applying. After two years, the contract is incontestable and even the suicide clause lapses.
• The policy remains in effect after the mortgage is paid. The policyholder can convert his or her term life insurance into a permanent life insurance policy before the age of 71[1] without medical proof.
• Coverage stays with you for the duration of the contract: if the owner changes a mortgage lender, the life insurance policy stays in force; there is no need to requalify.

Mortgage life insurance

• The lender (the bank) is the owner of the policy. The terms of the policy can be changed by the lender at any time and the lender names itself as the sole beneficiary.
• The protected capital (death benefit) linked to a mortgage decreases over time, corresponding to the balance of the mortgage and unlike the death benefit, the premiums increase with the age of the person insured.
• Premiums are not guaranteed and may increase depending on the claim rate of the group covered under group insurance.
• As part of mortgage-related life insurance coverage, eligibility for life insurance coverage will not be made until the time of death claim. This could lead to unpleasant surprises for your estate (refusal of claim).
• Mortgage-related life insurance at the bank does not allow you to transfer your coverage to another financial institution in the event of a better mortgage rate at the time of renewal or refinancing and ends with the final payment of the mortgage.
•  No possibility of converting this insurance into a permanent life insurance contract.
• If the insured changes mortgage lenders, he or she will lose his or her life insurance coverage and will have to requalify.

[1] The maximum conversion age may change depending on the insurance company.