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Plain-English answers about life insurance in Canada — every figure dated, sources shown, and the hard questions handed to a licensed human.

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Chart comparing coverage over time: an individually owned term life policy holds a level benefit for the whole term, while bank mortgage life insurance declines toward zero as the mortgage is paid down.Coverage & Needs

Mortgage life insurance vs. term life insurance in Canada

Bank mortgage life insurance pays a shrinking benefit to your lender; term life pays a level benefit to whoever you name. What the FCAC comparison table and the banks' own certificates actually say — and the narrow cases where creditor coverage still wins.

Updated Aug 12, 2026By LifeRate Editorial