Should I take the mortgage insurance my bank offered or buy my own life insurance?
By Reynolds Edokpayi, Zenith Advisory Inc., Saskatoon · Updated October 2026 · 4 min read
What bank mortgage insurance actually is
It's group creditor insurance. If you die, it pays off the remaining mortgage balance directly to the lender. You answered a few health questions when you signed; the detailed check usually happens when a claim is made (called post-claim underwriting), which is when problems surface.
Five differences that matter
When the bank's product can make sense
If you've been declined for personal coverage because of health, creditor insurance with limited questions may be the coverage you can get. For everyone else, it's convenient and usually a worse deal.
What to do
Get a quote for a term policy covering your mortgage amount (or better, your full family need, since the mortgage is only part of it). Compare the monthly cost with what the bank quoted. You can cancel the bank's insurance at any time once your own is in place; don't cancel first.
Want this worked out for your numbers? We'll build a plan for your family that covers the risks, the savings and the goals, and show you what to do first.