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Mortgage Life Insurance


mortgage life insurance

Buying a home can be the single biggest decision and purchase you will ever make. For most buyers, that purchase involves a substantial mortgage and years of debt.

If covering your mortgage when you die is your main insurance need or part of a larger insurance plan, consider using Solution 20 term life insurance from Empire Life on its own or add it as a rider. This product offers simplicity, more benefits and greater flexibility over group mortgage life insurance offered by traditional mortgage lenders.

The advantages and competitive features of Solution 20 from Empire Life are clear

  • You own the policy, not your lender.
  • You choose your beneficiaries and they decide how the money is used.
  • Your coverage is portable. No need to re-qualify if you change lenders.
  • Your coverage remains the same, even as your mortgage decreases.
  • You keep your coverage for as long as you need it.

Comparing the initial premium of Solution 20 to traditional mortage insurance

Mortgage Amount – $250,000

Empire Life Solution 20 Policy

Empire LIfe Solution 20 Rider - Saving $50 policy fee

Traditonal mortgage life insurance from banks*

Male, Age 35, Non-smoker $257.50 $207.50 $402.24
Male, Age 40, Non-smoker $352.50 $302.50 $615.60
Female, Age 35, Non-smoker $205.00 $155.00 $402.24
Female, Age 40, Non-smoker $267.50 $217.50 $615.60

* The traditional mortgage life insurance premium shown is based on the average rate quoted in a survey of Scotiabank, Bank of Montreal, TD Bank, RBC, and CIBC conducted January 6, 2016 by Empire Life. All amounts shown are based on a initial annual premium rate.


Complete the package with Critical Illness coverage

Combine our Solution 20 term life insurance and Vital Link Critical Illness coverage for a comprehensive package. Vital Link offers financial protection if diagnosed with any one of the 23 covered conditions including Heart Attack, Stroke, Cancer and Loss of Independence. If you do not become ill, you could receive all of your Vital Link premiums back by adding one of our two Return of Premium options to your critical illness coverage.


mortgage life insurance

Let’s look at the differences between typical creditor group coverage purchased from a lender and what you, as an advisor, can offer:

Mortgage Lender

Empire Life Policy

Policy ownership Lender owns the policy Client owns the policy
Beneficiary Lender is the beneficiary Client chooses the beneficiary
Proceeds on death Lender uses the proceeds for the outstanding mortgage balance Beneficiaries may use proceeds any way they choose
Portability Any change in lenders means client will have to qualify for coverage and rates may increase Any change in lenders will not affect coverage or the existing insurance costs
Rate banding Lenders will cover only the mortgage balance, giving less opportunity to reduced rates Combining other insurance needs with mortgage coverage could further reduce overall costs
Underwriting Post-claims underwriting, increases the risk that a client could be denied coverage years after payment commenced Coverage is underwritten at the time of application and once the policy is placed it cannot be revoked by the insurer (except in cases of misrepresentation or fraud)
Decreasing coverage Coverage automatically decreases as the mortgage is paid off without any decrease in costs Coverage can only be decreased by the client, and any decrease will also decrease the costs
Guarantees Some mortgage insurance offerings may allow the lender to increase rates or even cancel coverage on a group basis Rates and coverage amounts are fully guaranteed once insurance is placed
Critical Illness Options Typical lender critical illness offerings cover 3 conditions only and limited options Individual critical illness coverage provides comprehensive coverage with multiple options including the return of premium options
Refinancing Clients needing to draw equity from their home may be required to forfeit some coverage and possibly reapply at higher rates Clients can keep their coverage regardless of any changes to their mortgage



The information in this document is for general information purposes only. Please seek professional advice before making any decision. ® Registered trademark of The Empire Life Insurance Company. TM Trademark of The Empire Life Insurance Company. Policies are issued by The Empire Life Insurance Company.

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