User our online calculator to compare RBC's offer. Shopping for mortgage insurance has never been simpler!
If your family is going through difficult times, it is reassuring to know that your insurance company will not jump ship.
However, some insurance contracts contain clauses that provide for the removal of your protection in the event a financial setback. For instance, mortgage loan insurance from the Royal Bank will automatically terminate on the date that you file a petition for bankruptcy or a petition for bankruptcy is filed against you. Far from protecting your family in the most challenging times, this clause you’re your protection.
With InfoPrimes, the act of filing a bankruptcy petition will not affect your insurance policy. Signing up for an individual policy gives you the benefits and flexibility that you cannot get from most banking institutions, who have group contracts. The bank owns the insurance policy and the premium, so that in case of death or disability, it can be used to pay for the mortgage, and nothing else.
To help you better plan your purchase and all of the related fees, InfoPrimes offers a mortgage insurance calculator. You can compare the cost of InfoPrimes’ insurance, as opposed to the insurance from many other banks, including RBC.
|RBC||Infoprimes||Savings After 25 Years|
|Male, 45 years old, non-smoker
Mortgage life insurance for a loan of $ 150 000.
|$ 47.42||$ 23.22||$ 7,260.00|
|Husband and Wife, 30 years old, non-smokers
Mortgage life and disability insurance. For a loan of $ 250 000.
|$ 68.43||$ 41.45||$ 7,989.00|
|Husband and Wife, 53 years old, non-smokers
Mortgage life and disability insurance for a loan of $ 200 000.
|$ 232.67||$ 154.53||$ 24,309.00|
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.
Note that the eligibility rules are quite strict with group insurance. It is important to complete the insurability report and return it to the financial institution within 30 days after its signing. You must monitor yourself. With InfoPrimes, there are no worries, as the company and your representative will take care of you. You can rest easy.
It is also important to note that it is impossible to switch mortgage lenders with the contract with your financial institution. As your age changes, your insurability may change as well. If you decide to change to a new lender because it offers better conditions or lower interest rates, you will have to change insurers, which could result in a change in the premium and the terms of your policy. These constraints do not exist with InfoPrimes, as you keep your insurance policy regardless of the lending institution.
|Who owns the contract ?||The Bank||The owner of your choice.|
|What type of insurance is available ?||Canada-Life Group No. G60101/H60101||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 results from a preexisting condition 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 Royal Bank for a family-type property with no more than 6 units.||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 ?||Your insurance will terminate if you have not paid your premiums for 60 days.||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?||No||Yes|
|What is the maximum age at which insurance can be purchased ?||Under 66, depending on your health.||85, depending on your health.|
|At what age does the insurance end ?||70 years||Your choice|
|What is the maximum amount of life insurance ?||$ 500 000||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?||65 years||59 years|
|What is the maximum amount of disability insurance ?||$ 3 000 / month||$ 5 000 / 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 ?||24 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 ?||The amount payable by the insurer is capped at $3000/month.||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?||No||Yes|
|What is the maximum amount of insurance ?||Not available||You choose|
|What diseases are covered?||Not available||You choose between 24 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 Royal 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 help you think about, and most importantly, help you plan your purchase, InfoPrimes offers a mortgage insurance calculator. With this handy tool, you will be able to compare the rates of major banks like Royal Bank with InfoPrimes. You will also be better informed about the protection you get, and the fees you pay, in order to make a well-reasoned decision.