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There are a few banks which are able to offer three insurance products: Life insurance, disability and critical illness. But is it possible to customize them like you want ?
Scotiabank offers all three products. However, since this is also a group contract, the advantage of buying these three types of insurance is overshadowed by the fact that you cannot customize your protection. Instead, it come prepackaged and you need to make some compromises for it to fit you.
When you sign up for individual insurance, like that from InfoPrimes, you are able to choose each of the terms of your contract and build the coverage that suits you. Our methods really will provide coverage for your needs.
With regard to the eligibility criteria, Scotiabank is somewhat more flexible than some other financial institutions. Simply put, you are eligible if you have an individual loan at Scotiabank. The residence must be occupied by the owner and must not contain more than four units.
It should be remembered that, as with other financial institutions, the bank is the owner and beneficiary of the group insurance policy. The consumer receives a certificate.
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 Scotiabank.
|Scotia Bank||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.
|$ 77.50||$ 41.45||$ 10,710.00|
|Husband and Wife, 53 years old, non-smokers
Mortgage life and disability insurance for a loan of $ 200 000.
|$ 255.00||$ 154.53||$ 37,641.00|
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 table shows the differences between the products offered by Scotiabank and InfoPrimes. In cases of death, disability or serious illness, for example, any preexisting condition 12 months prior to the signing of the contract means that no payments will be made.
Also, it is impossible to insure people who are not on the mortgage. This clause can be detrimental to spouses, among others.
|Who owns the contract ?||The Bank||The owner of your choice.|
|What type of insurance is available ?||Canada-Life group No. 60166||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, disability, serious illness, or dismemberment 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 join if you have an individual loan from the Bank of Nova Scotia. Must be owner-occupied or rental apartments of 4 units or less..||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 ?||No||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 ?||Yes, 60 days after the due date of your mortgage payment.||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 ?||64, 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).|
In the next table, you will be able to see that Scotiabank is able to offer all insurance products, including coverage for serious illnesses. However, remember that no group insurance policy has the flexibility of an individual policy, like the one offered by InfoPrimes. Think about this before purchasing your next mortgage insurance product.
|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||Not available.||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||You choose between 30, 60, and 90 days.|
|What is the maximum disability time permissible ?||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 ?||Under 55 years||64 years|
|Can I get critical illness insurance without purchasing life insurance?||Yes|
|What is the maximum amount of insurance ?||$ 500 000||You choose|
|What diseases are covered?||Heart attacks, strokes, coronary artery bypass surgeries, cancer, blindness, paralysis, deafness, and comas.||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 Scotiabank 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 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 Scotiabank.