Life and mortgage insurance options you should know more about

When buying a home, many Canadians are offered mortgage insurance through their lender, but it is not the same as traditional life insurance. Mortgage insurance is designed specifically to pay off the remaining balance of a mortgage if the borrower dies. The payout goes directly to the lender, meaning it can only be used to cover the loan.

Life insurance, on the other hand, provides a lump‑sum payment to beneficiaries, who can use the money however they choose. That could include paying off a mortgage, but also covering daily expenses, debt, or future costs like education.

We expand more in this edition of Money Matters with Integris.