User our online calculator to compare HSBC Bank's offer. Shopping for mortgage insurance has never been simpler!
The striking similarity between financial products offered by major banking institutions has the effect of trivializing the act of buying mortgage protection. Yet, it is the protection that you provide for your loved ones so they can be safe if something happens to you.
Consumers are often tempted to purchase the insurance made available at the time of signing their mortgage documents. These group insurance policies protect the mortgage issuers’ interests more than the financial security of policyholders.
On the other hand, an individual insurance policy will guarantee a payment to the beneficiary, who canuse it to pay the mortgage, partially or fully, depending on whether death or disability has occurred.
The insurance offered by HSBC does not stand out from that of its competitors. The typical group insurance offer cannot rival what you can find by signing up for an individual policy. It is important to shop around and consider all possible scenarios before making your final choice.
To help you better plan your purchase and all of the related fees, InfoPrimes offers a mortgage insurance calculator. You can compare InfoPrimes’ insurance rates with those of many other banks, including HSBC.
|HSBC Bank||Infoprimes||Savings After 25 Years|
|Male, 45 years old, non-smoker
Mortgage life insurance for a loan of $ 150 000.
|$ 45.78||$ 23.22||$ 6,768.00|
|Husband and Wife, 30 years old, non-smokers
Mortgage life and disability insurance. For a loan of $ 250 000.
|$ 75.84||$ 41.45||$ 10,212.00|
|Husband and Wife, 53 years old, non-smokers
Mortgage life and disability insurance for a loan of $ 200 000.
|$ 250.37||$ 154.53||$ 29,619.00|
No. According to Article 439 of the Act respecting the distribution of financial products and services :
“A distributor may not require the entering into of a subordinate contractual obligation for the customer to enter into a contract of insurance with the specified insurer. He may not exercise undue pressure on the client or use fraudulent tactics to induce him to purchase a financial product or service.”
Note that, under certain circumstances, financial institutions may ask you to obtain mortgage life insurance before they approve a loan. However, they cannot force you to obtain that insurance from their financial institution. See Article 22.
If your loan is for commercial or rental property and you have written confirmation which confirms that this life insurance (not applicable to disability) is required for acceptance of the loan, your premiums will be tax deductible under certain conditions. See Article 20-1 E.2.
This compares what you get by purchasing insurance from a bank, compared to InfoPrimes. In the case of InfoPrimes, you get an individual contract. The documents that are returned to you are a real contract, not a certificate. You own the contract in an individual policy, while the contract is owned by the bank in the case of a group policy.
What is important to keep in mind when comparing this table with individual insurance products is that the amount of your insurance always equals the amount of your mortgage, in the case of HSBC and all other products offered by the major banks. With InfoPrimes, you will pay for an insured amount, which will remain the same regardless of the amount of your mortgage. To put it simply, if you purchase insurance of $ 200 000, equivalent to the mortgage that you signed for, it will remain at $ 200 000 fifteen years later, even if your mortgage no longer totals more than $ 50 000. The remaining capital is yours to use.
|Who owns the contract ?||The Bank||The owner of your choice.|
|What type of insurance is available ?||Group insurance with Household Life Insurance.||Individual|
|Will I receive a contract ?||No (You will only receive proof of a contract)||Yes|
|Preexisting conditions (Conditions for which you have consulted with or been treated by a doctor)||If a death or disability due to a preexisting condition occurs within 12 months following the effective date of coverage, no benefit is payable.||The risk selection is made at the start of the contract. No exceptions to coverage..|
|Eligibility||You can sign up if you have a loan from HSBC.||Any loan from a financial institution or recognized organization providing for a minimum payment over a fixed period of time. *Even if they are different and there is more than one.|
|Can I change my mortgage lender and keep my insurance ?||No||Yes|
|Who receives the benefit ?||The Bank||The beneficiary of your choice (spouse, children, etc.)|
|How much is insured ?||The total amount owed||Your Choice|
|Are premiums guaranteed ?||The insurer has the right to change the premium rates at any time.||Yes|
|Is there a tax payable on the premium ?||A provincial tax is applied in Quebec (9%) and Ontario (8%). There are no taxes in any other provinces.||No. This is an insurance premium of individual persons, so the tax doesn’t apply.|
|Can term insurance be converted to permanent insurance ?||No||Yes|
|Do I pay my premiums with my mortgage payment ?||Yes||It’s up to you|
|If I don’t pay a mortgage rider, does this end my insurance ?||No, because your insurance and your mortgage are not linked together|
|Can people who aren’t on the mortgage be insured ?||No||Yes|
|Is the pricing based on tobacco usage?||Yes||Yes|
|What is the maximum age at which insurance can be purchased ?||64, depending on your health.||85, depending on your health.|
|At what age does the insurance end ?||70 years, or a maximum insured period of 40 years.||Your choice|
|What is the maximum amount of life insurance ?||$ 500 000 including any other insurance with HSBC.||Unlimited|
|What happens in the case of multiple insured parties who die simultaneously ?||The balance of the loan will be paid off||You receive the total amount that you chose at the beginning (eg, $ 200 000 per person).|
|Can I get disability insurance without buying life insurance ?||No||Yes|
|What is the maximum age at which insurance can be purchased?||64 years||64 years|
|What is the maximum amount of disability insurance ?||$ 3 000 / month||$ 10 000 / month|
|Class of Occupation||No||Depending on your occupation, generally better.|
|Can I choose the percentage of the payment that is protected ?||No. The only option is 100% of the monthly payments.||You get to choose, and can even add other loans.|
|How long do I have to be disabled in order to make a claim?||60 days, and no benefit is payable if a total disability is connected to a preexisting condition that occurs during the first 12 months of coverage.||You choose between 30, 60, and 90 days.|
|What is the maximum disability time permissible ?||12 months||You choose: 24 months, 60 months, or until you reach age 65.|
|Own-occupation (which prevents the insured from engaging in all remunerative work))||24 months||Depending on your occupation, it may vary between 24 months, 60 months, or until you reach age 65.|
|What happens in the case of two insured persons simultaneously becoming disabled ?||Benefits are only paid in respect of one disability.||You choose|
|What is the maximum age at which insurance can be purchased ?||Not available||64 years|
|Can I get critical illness insurance without purchasing life insurance?||Not available||Yes|
|What is the maximum amount of insurance ?||Not available||You choose|
|What diseases are covered?||Not available||You choose between 3, 4 or 25 diseases.|
Individual mortgage insurance, like all contracts offered by InfoPrimes, offers many advantages when compared with the group insurance products offered by most financial institutions. Not only will you have better protection, but the price of our insurance is often cheaper!
If you want to change your insurance to InfoPrimes, rest assured that you can cancel your mortgage insurance with HSBC Bank at any time without being penalized.
WARNING: It is important that you keep your current insurance in effect until your new policy is accepted, issued, and in force.
To better assist you in your efforts, InfoPrimes offers a mortgage insurance calculator. You'll be much better equipped to get an accurate picture of the amount that you will spend on protecting your mortgage, while incorporating protections specific to your financial and family situation. This table allows you to compare premiums for various banks including HSBC Bank, with those of InfoPrimes..