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Mortgage Insurance Calculator: Bank vs Personal Life Insurance

Every time a person signs a mortgage in Quebec, the bank advisor offers mortgage life insurance at the same time. Ticked by default in the contract, it seems simple and reassuring. However, compared to personal life insurance taken out with an AMF-certified broker such as Assur360, it loses almost every time. This free calculator shows you, in seconds, just how huge the gap can be — in dollars, protection, and flexibility.

THE BIG MATCH

Banking vs. Personal Life Insurance

Always won by the staff. Calculate the gap in 30 seconds.

Start the calculation
-40 %
Medium Savings
Fixed
Personal face amount
$0
AMF Broker
3 min
To compare

Calculator: Bank vs. Personal Life Insurance

Enter your mortgage and profile information. The calculator compares the monthly premium, cumulative cost and actual coverage paid to beneficiaries between the two options. Rates are 2026 estimates based on average Quebec market prices for a T25 (25-year term) policy.

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Why Personal Always Wins: 6 Reasons

📉

Decreasing vs. Fixed Capital

Bank insurance follows the balance of the mortgage : it decreases every month. After 15 years, your beneficiaries often receive half of what you pay for. Personal life insurance keeps its entire capital.

👪

Free beneficiary

In banking, the beneficiary = the bank. The money is only used to extinguish the mortgage. In staff, you choose who gets the money (spouse, children, trust) and how it's used.

🔁

Mobile between banks

Are you changing mortgages, banks, houses? Bank insurance is cancelled. The Personal follows you for the rest of your life, no matter where you refinance.

✅

Underwriting from the moment of signing

In banking, the health analysis is done at the time of death (post-claim underwriting). Refusals are possible. In staff, your coverage is approved as soon as you sign up.

💵

Competitive Bounties

An AMF broker compares 9+ life insurers and gets the best price according to your profile. The gap reaches 30 to 50% over 25 years for a healthy non-smoker.

🛡️

Modular coverage

Easily add disability, critical illness, waiver of premiums. The personal adapts. The banking sector is rigid and limited to mortgages.

Table: bank vs personal over 25 years

analysis ≈ $
CriterionBank (mortgage)Personal (life)
Principal AmountDescending ↘Fixed ✓
BeneficiaryThe bank (taxed)Free (spouse, children, trust)
PortabilityCancels on changeFollows you for life
MedicalAfter death (refusal possible)Before signing (guaranteed)
Use of the indemnityMortgage repayment onlyFree (studies, retirement, funeral expenses)
Endorsements (disability, critical illness)Not availableOptional, modular
25-year premium ($400K, 35-year NF)30,000≈ $18,000

*2026 estimates based on a 35-year-old non-smoking male, $400,000/25-year mortgage. Get your exact price in 3 minutes.

How to replace your mortgage insurance in 4 steps

1

Get your personal life quote

Fill out a free quote at Assur360. An AMF broker compares 9+ insurers in 3 minutes based on your age, gender, smoking habit and medical history.

2

Get your policy approved

Health questionnaire, and sometimes free medical examination at home. In most cases, the policy is issued in 7 to 14 days.

3

Cancel bank insurance

Once your personal policy is in force, write to the bank to remove the mortgage group protection. Standard form, no cancellation fee.

4

Cash out the savings

You often save 30-50% as a bonus, with superior protection. Some clients use the spread to contribute to an RRSP or TFSA.

💡

Broker's advice

Get your personal policy approved before cancelling the bank. This way, you avoid any period without coverage if a health problem arises during the transition. Assur360 coordinates the transition free of charge.

⚠️

Beware of the trap of "post-claim underwriting"

Bank insurance carries out its medical analysis at the time of the claim, often after a death. If the insurer finds an omission in the original health statement, the claim may be denied and premiums refunded. With a personal policy, you are covered for only 2 years, after which it is irrevocable.

WIN THE GAME

Get your life quote in 3 minutes

Compare 9+ insurers with an AMF broker. 100% free, no obligation.

My free quote1-866-357-4451

Concrete examples by profile

$ 70 17 $ 100 24 $ 150 60 $ 180 125 $ 165 85
ProfileMortgageBank /monthLife T25 /monthEconomy 25 years
Female 28 years old, non-smoker350,000≈ $≈ $≈ $15,900
Male 35 years old, non-smoker400,000≈ $≈ $≈ $22,800
Couple 40 years old, non-smokers500,000≈ $≈ $≈ $27,000
Male 45 years old, smoker450,000≈ $≈ $≈ $16,500
Woman 55 years old, non-smoker300,000≈ $≈ $≈ $24,000

Where Assur360 accompanies you in Quebec

Our AMF brokers advise homeowners in Montreal, Quebec City, Laval, Longueuil, Gatineau, Sherbrooke, Trois-Rivières, Saguenay, Lévis, Terrebonne, Saint-Jean-sur-Richelieu, Drummondville and Thetford Mines to replace their bank mortgage insurance with a more suitable and economical personal life solution.

Related Resources

Frequently asked questions

Is bank mortgage insurance mandatory in Quebec?
No. There is no law in Quebec that requires you to take out the life insurance offered by the bank at the time of signing the mortgage. Financial institutions routinely offer it, but you have the right to refuse and choose personal life insurance instead. The AMF regularly reminds us of this right.
Can I replace my bank's insurance after I sign?
Yes, at all times. Once your personal policy is issued and in force, you send a simple form to your bank to cancel the group coverage. No fees, no penalties. The personal insurer will then be your only coverage.
Why is decreasing capital a disadvantage?
You pay the same monthly premium for 25 years, but the coverage paid when you die decreases each month with the balance of the mortgage. After 15 years, your beneficiaries could receive half or less. Personal life insurance, on the other hand, always pays out the full capital.
What is "post-claim underwriting"?
This is the practice of group banking insurance: the analysis of your medical history is only done at the time of the claim, often after death. If the insurer finds an omission in the original questionnaire, they can deny the claim and simply refund the premiums. With an individual policy, the analysis is done before the issue — after 2 years, the policy becomes indisputable.
How much does T25 personal life insurance cost in Quebec?
For a healthy non-smoker: about $15 to $25 per month at age 30, $25 to $45 at age 40, $60 to $110 at age 50, for a principal amount of $400,000. Smokers pay about 2.2× more. Use the calculator above for an estimate based on your profile.
What happens to my policy if I change banks or houses?
The personal policy is yours : it continues without interruption regardless of the bank, mortgage or address. Bank insurance, on the other hand, expires as soon as the mortgage is paid off or refinanced elsewhere — you have to start all over again (and often at a higher rate because you're older).
Is the spouse automatically covered in the bank?
Only if the spouse is a co-borrower and only if he or she has also ticked the box. In personnel, each spouse has his or her own policy at the amount he or she chooses, or a joint policy with payment on first death (common solution for couples).
I am young and healthy, is it really urgent?
This is precisely the best time: the younger you are, the lower the premium and the more it remains locked in for 20 or 25 years. At 30, you can lock in a rate that will be 3 to 4× cheaper than at 50. Later, a medical diagnosis can make insurance inaccessible.
Is it better to use T10, T20 or T25 to cover my mortgage?
The ideal term is the one that covers at least your amortization, with a margin for unforeseen events. For a 25-year mortgage, a T25 makes sense. Some prefer T20+ smaller permanent font. Your AMF Assur360 broker will do the analysis according to your estate and budget objectives.
Can I increase the capital without having to do a new medical examination?
Yes, with the Guaranteed Insurability Rider or by choosing a permanent policy with a Flex Amount. Bank insurance, on the other hand, only increases if you take out a new mortgage and it does its own analysis each time.
Does personal life insurance cover disability?
Not automatically, but you can add a premium waiver rider (premium paid by the insurer in the event of disability) and critical illness coverage (lump sum payment if cancer, stroke, heart attack, etc.). Bank insurance sometimes offers disability, but under stricter conditions and more limited definitions.
How does the quote work with Assur360?
You fill out a quote online (3 min) or call a broker at 1-866-357-4451. We compare 9+ AMF-certified insurers, give you the best scenarios, then coordinate medical examination and issuance. The transition from banking to personal is managed by your broker, with no interruption in coverage.

Why trust Assur360?

✓AMF certified firm
✓ChAD Member
✓100,000+ Submissions
✓9+ Life Insurers Compared
✓Independent broker
✓Phone: 1-866-357-4451

FREE QUOTE

Save on your mortgage insurance today

Compare 9+ insurers with an AMF broker in 3 minutes. 100% free, no obligation.

My free quote1-866-357-4451
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