Your Home Is Your Biggest Asset.
Protect It Properly.
Bank mortgage insurance only covers the bank. Independent mortgage protection covers your family — at a fraction of the cost, with portable, guaranteed coverage.
Free. No obligation. Takes 2 minutes.
✦ Especially valuable if you're self-employed or incorporated
Portable Coverage
Follows you, not your mortgage
Paid to Your Family
Not the bank
The Direct Answer
Individual term life insurance is better than bank mortgage insurance for most Alberta homeowners.
Bank mortgage insurance (creditor insurance) protects the lender, not your family. The benefit declines as you pay down the mortgage. The medical review often happens at claim time — not when you apply. Individual term life insurance is typically 30 to 50% cheaper, pays your family directly, and keeps the same benefit amount for the full term.
The one case where bank insurance makes sense: if you have a serious pre-existing condition and cannot qualify for individual coverage. For everyone else, individual coverage wins every time.
Quick Summary
Bank mortgage insurance: protects the bank, not your family
Individual term life: your family is the beneficiary with full control
Individual coverage is 30 to 50% cheaper for healthy applicants
Bank coverage declines as you pay down your mortgage — individual stays level
Individual coverage is portable — survives refinancing and lender changes
Frank compares 20+ carriers for the best individual rate for your profile
How Much Does Mortgage Protection Insurance Cost in Alberta?
For a healthy 35-year-old non-smoker on a $500,000 mortgage, here is the real comparison.
| Product | Monthly Cost | Payout at Year 1 | Payout at Year 20 |
|---|---|---|---|
| Bank creditor insurance (20yr) | $80–$110/mo | $500,000 | ~$250,000 (declining) |
| Individual 20yr term life | $45–$65/mo | $500,000 | $500,000 (level) |
| Individual 25yr term life | $55–$75/mo | $500,000 | $500,000 (level) |
Illustrative ranges for a healthy 35-year-old non-smoker in Alberta. Individual rates vary by health profile and carrier.
Do You Actually Need Mortgage Protection Insurance?
If you have a mortgage and someone in your life depends on your income, yes. The question is not whether you need protection — it is whether you have the right kind.
Choose individual coverage if
You are in good health
You have a spouse, children, or dependents
You want your family to control the payout
You may refinance or switch lenders
You want coverage that does not shrink over time
Bank insurance may be the only option if
You have serious pre-existing conditions that prevent qualification for individual coverage
You have been declined by individual carriers
Mortgage Insurance vs Life Insurance: Full Comparison
Bank creditor insurance vs. individually owned term life insurance.
| Feature | Bank Mortgage Insurance | Individual Term Life |
|---|---|---|
| Beneficiary | The bank | Your family |
| Coverage over time | Declines as mortgage shrinks | Level for full term |
| Premiums | Stay same as coverage drops | Fixed at approval |
| Underwriting timing | At claim (post-claim) | At application |
| Portability | Tied to the lender | Follows you always |
| Claim reliability | Lower — reviewed when family is grieving | Higher — approved before policy issued |
| Cost per dollar of coverage | Often 2 to 3x more | Lower for healthy applicants |
| Carrier options | One — your bank's product | 20+ carriers compared |
Common Mistakes People Make
1. Signing up for bank insurance at closing without comparing
It happens at the worst moment. You just signed a $600,000 mortgage. The banker offers insurance for $89/month. You say yes. You have no idea if that is a good price or a bad product. Most of the time it is both.
2. Assuming the bank has your family's interest in mind
Bank creditor insurance protects the bank's asset — the loan. Your family is not the client of that product. An independent policy makes your family the beneficiary with full control over the payout.
3. Not knowing about post-claim underwriting
Bank creditor insurance often reviews your medical history only when a claim is filed. That means your family can pay years of premiums and still have the claim denied based on a doctor's note from 2019. Individual policies underwrite you first. The decision is made before you pay a dollar.
4. Thinking individual coverage is too complicated to switch
It is a phone call and a 30-minute application. Frank compares 20+ carriers, recommends one, manages the paperwork, and coordinates the cancellation timing. Most people are switched within 4 weeks.
One way to avoid Mistake #1: arrange your mortgage through an independent broker rather than going direct to the bank. Maple Key Mortgagescompares 50+ lenders in Calgary without bundling creditor insurance into the signing process — so the protection conversation happens on your timeline, not the bank's.
How Getting Coverage Works
No pressure. Frank manages the whole process.
01
Brief conversation
15 minutes. Your mortgage balance, health situation, and what you already have.
02
Comparison across 20+ carriers
Frank finds the best individual rate for your profile. You see the options.
03
One honest recommendation
One carrier, one product, one reason. Not influenced by commission differences.
04
Application to approval
Frank manages the paperwork. Standard cases: 2 to 4 weeks. Then you own a policy that protects your family — not the bank.
Frequently Asked Questions
Get a Personalized Insurance Plan (Free)
No obligation. Unbiased advice. Comparison across 20+ carriers.
Not owned by a bank. You own your policy. Alberta-wide.
How It Works
Three steps. Zero pressure.
Quick Call
15 minutes. We talk about your situation, coverage needs, and budget. No forms. No commitment.
Frank Compares
We shop 6+ carriers and find the best fit for your family. You see exactly what we see — no hidden options.
You Decide
Review the options. Ask questions. Take your time. If nothing fits, we'll tell you. No pressure to sign.
The Difference
Your Bank's Version Protects Them. This One Protects You.
Real-World Example — as cited in national media
Healthy 40-year-old non-smoking couple · $600,000 mortgage
Bank Mortgage Life Insurance
~$180/mo
Declining coverage · capped at $600,000 · benefit paid to the bank
Two Individual 20-Year Term Policies
<$89/mo combined
$1,200,000 total coverage · both insured · level benefit paid to your family
Alberta residents only. No obligation.
"I'd been putting off life insurance for years because I didn't want to sit through a sales pitch. Gavin made it completely painless — explained the options in plain English and had me covered within a week. Got a better rate than I expected too."
Shane T
Local Guide · Life insurance
"I had originally looked at mortgage insurance through my bank and didn't realize how limited it actually was. Gavin showed me a better option where I actually own the policy. No pressure at all, just honest advice."
Giovanni Lombardi
Mortgage protection
"As someone self-employed, I always felt like I was overpaying but didn't know my options. Gavin broke everything down in a way that made sense. No pressure at any point, just straightforward advice and a clear path forward."
Adrian Drysdale
Local Guide · Self-employed coverage
Free · No Obligation · 2 Minutes
Stop letting your bank profit from your mortgage.
Get a real comparison. Independent coverage typically costs less and protects your family — not the bank.
Free. No obligation. Your info stays private.
FAQ
Common questions. Straight answers.
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