"Oh, we already have mortgage insurance, we're good"

I've heard this one more than a few times. And yes, it's better than no insurance. However, mortgage insurance doesn't usually mean the same thing as life insurance. Here are a few typical and crucial differences that everyone should be aware of, followed by a link to a CBC Marketplace report done many years ago, that is still just as relevant today. Education is key.

1. Post claim underwriting - Silly question. Would you want to know for sure that you're covered when you're paying a premium or wait for your family to find out after you're gone that you actually weren't insurable after all? Getting your own coverage separately will ensure you have that peace of mind. You will know from Day 1. And not leave a legacy of financial devastation.

2. Beneficiary/Declining benefit - Mortgage insurance only covers the remaining balance (which has been declining) even if you've been paying for 20 years. Plus that money goes to the bank, not your family. That's it, that's all. OR.... have your family receive all the proceeds, the amount hasn't declined, and you can make sure there is enough to pay off debts, replace your income for as long as you see fit, fund education funds for children, etc - effectively allowing your loved ones to maintain their previous standard of living and the time to grieve rather than forcing a fire sale of their home down the road in unpredictable market conditions just to stay afloat. That means your own individual life insurance policy.

3. Moving? - New house, new coverage. Maybe. If you re-locate, you are now older and will pay a higher premium for coverage, that once again, you won't likely know for sure will pay out. Your family will find out after you're gone. But with your own individual life insurance policy, it doesn't matter how many times you move, same coverage and same premium all along. No need to re-qualify.

4. Little known facts - Your own coverage is often cheaper than through the bank anyway. And at that bank, you aren't actually dealing with a licensed insurance professional....which would probably be a good idea, don't you think? Especially when you are looking at protecting the largest one-time investment most people will ever make. And lastly, remember, that mortgage insurance IS NOT mandatory, even if it feels that way or is suggested. Mortgage loan default insurance is mandatory (when you put less than 20% down upon purchase) BUT IT IS NOT life insurance, and not what we are talking about here.

An hour or less of education can pay huge dividends in both the short-term and long-term. So make sure to take the time. Here's that CBC Marketplace report.

https://www.youtube.com/watch?v=qe61HVGIwUo