HELLO!! Thanks for visiting RateHouse, your source for the Best Rates, Professional Services & Expert Advice. We are currently updating our rates algorithm. We will be offering rates again soon, we apologize for any inconvenience.

RateHouse Quality Assurance team

Creditor Insurance Mortgages

Creditor insurance for mortgages may not be the best choice for your insurance needs in case of premature death. Here’s why:


    • Rates are not guaranteed. Insurers may raise the rates at any time depending on market interest rates, the carriers’ expenses, etc.


    • If you move your mortgage to take advantage of more competitive rates elsewhere, you may be left without insurance coverage.


    • You can’t take a death benefit in a lump-sum cash payment and invest the money instead of using it to pay off the mortgage.


    • They are age banded, which means your rates may increase as the policy matures. Your initial bank quote may only be valid for one year.


    • Creditor mortgage insurance is subject to a 30-day cancellation notice that could strand you without mortgage life insurance coverage.


    • If you respond affirmatively to any health questions on a creditor application, you’ll be denied coverage. Impaired risks are not covered at a rated premium. Individual term policies offer you more investigation into the present status and background of the illness, and can usually often offer coverage at a slightly higher premium.


    • You can’t terminate this kind of mortgage because it isn’t a legal contract unlike an individual term life insurance contract.


    • You have no penalty insurance (about three months’ interest) if you pay off your mortgage early through a bank or trust company. Penalty insurance is covered as part of an individual term insurance policy.


    • Once the mortgage is retired, you don’t have the option of retaining the insurance coverage.


  • If your spouse dies prematurely, you are no longer automatically insured


Stay connected with us using your favourite flavor!

Want to become a Ratehouse professional partner?