SERVICE LAW FIRM 78 Mary Street, P.O. Box 40, Stn. Main, Barrie, Ontario, L4M 4S9 Phone: (705) 737- 2123,  Fax: (705) 737- 2194 MORTGAGE INSURANCE COMPARISON

COMPARISON  OF  INSURANCE  SUPPLIER FOR  MORTGAGE  LIFE  INSURANCE

Mortgage Insurance from Banks, Trust Companies, or Credit Unions

Individual Term Mortgage Insurance from a Life Insurance Company

Often more expensive	Often less expensive
You are insured under a group policy issued by an insurance company	You are insured under an individual life insurance policy
Your policy is subject to change of the insurance provider and the terms of the agreement between the lender and the insurance provider	The insurance company cannot change the policy provisions or the guaranteed policy premiums during the term
Your mortgage lender owns the certificate of insurance	You are the owner of the policy of insurance
Your mortgage lender is the beneficiary	You name the beneficiary of your choice
The amount of insurance protection reduces as you make your mortgage payments	The insurance protection never decreases unless you request a reduction during the term
The cost of insurance does not decrease even though the amount of protection does	If you reduce your coverage, your payments will be reduced as well
The insurance protection is not transferable and is limited to the mortgage you have for a certain property with a certain lender	This protection stays in place when you change homes and mortgage lenders
The insurance protection stops when the property is sold or mortgage refinanced	The insurance protection stays in place even if the property is sold
No changes are permitted under the plan	You can make changes to your policy, including changes of beneficiary, amount of coverage and conversion to a permanent insurance policy
The insurance is not guaranteed renewable for a new mortgage and, if you change financial institutions, you may be required to provide new evidence of insurability	Insurance protection is guaranteed renewable to age 85 and you can keep it this long if you wish for many policies
You have a bank employee to look after you	You use your own insurance and financial advisor to arrange and service the policy
Prepayment penalty, if any, is included in payout	Prepayment penalty applies requiring planning to minimize