Personal Finance

Have mortgage insurance, want to switch to life insurance to cover mortgage.

  • Last Updated:
  • Jun 26th, 2019 7:06 pm
[OP]
Sr. Member
Sep 27, 2009
723 posts
451 upvotes
Sask, Canada

Have mortgage insurance, want to switch to life insurance to cover mortgage.

So I currently have a mortgage through Street Capital where I put %20 down. We initially signed up mortgage insurance but I found that it's a waste of money when I could get life insurance to cover the house mortgage if need be. Do I need to contact Street Capital about cancelling my current mortgage insurance and going with life insurance? Is there anything I'm missing with my plan?

Thanks
9 replies
Sr. Member
Sep 23, 2013
508 posts
286 upvotes
Windsor, Ontario
Paxonator wrote: So I currently have a mortgage through Street Capital where I put %20 down. We initially signed up mortgage insurance but I found that it's a waste of money when I could get life insurance to cover the house mortgage if need be. Do I need to contact Street Capital about cancelling my current mortgage insurance and going with life insurance? Is there anything I'm missing with my plan?

Thanks
You'll need to contact them and they'll most likely ask you to e-mail them something in writing to cancel the plan. Don't cancel anything until you have a new plan in place as other life insurance needs to be underwritten before you're approved.
Life and Health Insurance Agent.
Licensed with 8 companies, access to nearly a dozen more.
[OP]
Sr. Member
Sep 27, 2009
723 posts
451 upvotes
Sask, Canada
SteveDfsin wrote: You'll need to contact them and they'll most likely ask you to e-mail them something in writing to cancel the plan. Don't cancel anything until you have a new plan in place as other life insurance needs to be underwritten before you're approved.
Sorry the mortgage insurance is through a separate company. Contract says I can cancel anytime. I'm currently getting life insurance quotes from local places.
Deal Addict
Jan 15, 2017
3755 posts
3165 upvotes
Paxonator wrote: Sorry the mortgage insurance is through a separate company. Contract says I can cancel anytime. I'm currently getting life insurance quotes from local places.
You need to contact the insurance company that you have the mortgage life insurance ( I assume that it is mortgage life insurance) to cancel it. Most likely they will want written confirmation due to the risk involved. Do you also have mortgage disability insurance?

I agree with the previous poster that you should have new life insurance firmly in place before you cancel your current mortgage life insurance.
Sr. Member
Sep 23, 2013
508 posts
286 upvotes
Windsor, Ontario
Can you clarify what you mean by separate place? Do you mean it's not attached to the actual mortgage as in you independently applied for it and underwritten for it? Or it's attached to the mortgage via a third party company .

The reason I ask is sometimes people tell me they want "mortgage insurance" to cover the mortgage, so I put in place a T20 for the mortgage amount. In their minds they might think it's mortgage insurance but it's just independent life insurance covering the mortgage.

In the event that it is actually post claim underwritten insurance, my original post still applies.
Life and Health Insurance Agent.
Licensed with 8 companies, access to nearly a dozen more.
[OP]
Sr. Member
Sep 27, 2009
723 posts
451 upvotes
Sask, Canada
SteveDfsin wrote: Can you clarify what you mean by separate place? Do you mean it's not attached to the actual mortgage as in you independently applied for it and underwritten for it? Or it's attached to the mortgage via a third party company .

The reason I ask is sometimes people tell me they want "mortgage insurance" to cover the mortgage, so I put in place a T20 for the mortgage amount. In their minds they might think it's mortgage insurance but it's just independent life insurance covering the mortgage.

In the event that it is actually post claim underwritten insurance, my original post still applies.
Our mortgage broker sourced it out for us. Company is Canada Life and says iprotect Mortgage Insurance. Contract says it is portable and can move if we change financial institutions.

I'll call street capital tomorrow to verify everything and make sure to have appropriate life insurance in place before cancelling anything.
[OP]
Sr. Member
Sep 27, 2009
723 posts
451 upvotes
Sask, Canada
skeet50 wrote: You need to contact the insurance company that you have the mortgage life insurance ( I assume that it is mortgage life insurance) to cancel it. Most likely they will want written confirmation due to the risk involved. Do you also have mortgage disability insurance?

I agree with the previous poster that you should have new life insurance firmly in place before you cancel your current mortgage life insurance.
It looks like my mortgage insurance has some disability built into it. I'll make some phone calls tomorrow and get a handle on what everyone needs.
Deal Addict
Jan 15, 2017
3755 posts
3165 upvotes
Paxonator wrote: It looks like my mortgage insurance has some disability built into it. I'll make some phone calls tomorrow and get a handle on what everyone needs.
It may have disability, terminal illness and critical illness also. Depends on how the quote was bundled and whether your broker went over everything with you. Just make sure you understand what you have now and can compare it with whatever another company is overing. Don't compare life, disability and critical illness insurance for instance with just term life insurance. Compare life with life, disability with disability and so on.
Member
Nov 9, 2015
369 posts
36 upvotes
ON
Recommendation for Universal and term Insurance !
Be positive & stay blessed :)
Deal Addict
User avatar
May 11, 2014
4441 posts
5188 upvotes
Iqaluit, NU
sh8wh4sg wrote: Recommendation for Universal and term Insurance !
Are you asking for an agent?
Posting here can get better responses
https://forums.redflagdeals.com/life-in ... on-929132/

I would look up an insurance broker with good reviews.

I bought from http://www.insurancedirectcanada.ca/ and they were really good as it was difficult finding an agent with a Nunavut license.
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