Life Insuring Your Mortgage

Why insure your home mortgage with Jelco Financial?


Why insure your home mortgage with Jelco Financial instead of a bank, credit union trust company?

An individual policy can only be cancelled by you.

Your individual policy may be continued as long as you wish. It is a portable plan that can be used to cover any mortgage anywhere.(Statistics Canada report the average Canadian family moves once every 5 years)

Your policy is portable. This prevents the danger of you ever losing the protection because your health has changed. It protects your right of ownership–your insurability.

An individual term policy may be converted regardless of health, usually until age 65

You may purchase any kind of insurance. Either permanent or term insurance; decreasing or level.

You may purchase any amount of coverage you require.

You purchase an individual personal policy owned by you.

An individual personal policy allows the owner to make beneficiary designations. The owner or beneficiary may select any one of several settlement options. In the event of death your beneficiary will receive the proceeds from your policy. Your beneficiary can have the choice of repaying the mortgage or not, thus preventing a hasty decision. **proceeds are protected from creditors.

Because you own the policy you have complete control over it.

An individual policy covering both husband and wife can insure each of them for the same amount. The proceeds will be paid on the death of either one. Should both husband and wife die, the proceeds are paid twice! Also, the coverage on the survivor may be continued to protect family needs. It may be very important to the new breadwinner.

With a personal individual policy you may select the type of plan you wish, the features and provisions you require. The choice is yours!

There are a number of features and provisions which you may add to your policy. You may wish to add a waiver of premium if you were disabled. Or add a disability provision which would replace part of your income should you become disabled. Another option would give you the right to increase your protection, regardless of your health.

You are buying from a licensed professional that can help you in making your decision and explain and offer you a great choice of plans. His or her service in the years to come can be invaluable.

There are no taxes on your life insurance premium.

With Jelco Insurance you can own the insurance coverage.


Understand the disadvantages of insuring your mortgage with a bank or credit union.

The group policy can be cancelled by the bank or issuer at any time.

Group coverage will terminate upon the happening of any of the following events:
a) the mortgage loan is repaid
b) the mortgage is assumed
c) the house is sold
d) the mortgage is in default
e) the insured person ceases to occupy the house(i.e. if you rent your home)
f) the group policy terminates

Group plans are not portable! Illustration: you take your mortgage to another bank – you lose the mortgage insurance at the existing bank.
a) you must then be able to qualify for new coverage.
b) You are subject to rates at the time with a new mortgagor.

Group mortgage insurance is not convertible!

The group coverage is always decreasing term insurance declining as the mortgage declines.

The face amount of your policy can only be for the exact amount of your mortgage (no more, no less)

You are covered under a group policy owned by the bank.

Group mortgage insurance does not allow you to make beneficiary designations or to select settlement options. In the event of death the bank is repaid automatically. Illustration: If you wish to invest the cash, rather than pay off a low interest mortgage you have no choice, your bank gets the cash. Privately owned, the choice is yours. Pay it off or invest the cash.

Because the bank owns the policy you have NO CONTROL over the policy.

Group coverage whereby both husband and wife are covered only pays on the death of one of the insureds NOT BOTH. The coverage on the survivor terminates. It cannot be continued!

The features and provisions of the group policy are the same for everyone insured under it. Only the face amount will vary.

No other benefits or features may be added to your group policy NOTE: The point is, that if you do have bank type coverage you have the deficiencies and problems shown by this comparison! If you don’t have coverage at all consider the advantages.

When you insure through the group policy offered by the bank you are not given the benefit of professional insurance counseling. Your loans officer is not a licensed life insurance agent. They may or may not be well informed on the various types of coverage available.

The Ontario government has applied a tax of 8% to the mortgage insurance premium.

With the bank you are renting the insurance coverage.

Jelco Financial Planning puts you in control of your mortgage insurance.  Contact Jelco Financial Planning today to get started.