Rita Jethi Sales Representative

If you have a mortgage on your home, chances are good you also have mortgage insurance. The idea is that if you sholud become seriously ill or die before paying off the martgage, the coverage will kick in and pay it off for you. It's meant to offer peace of mind and to reassure you that your family will be able to stay in your home if anything sholud happen to you.

The reality falls a little short of that. In this week,s Marketplace investigation, we meet two families who bought the coverage and thought they are protected, only to have their claims denied when they become sick or died. In each case, the insurer said the applicant person had lied on their initial application form.

It turns out a routine test at the doctor could be reason to deny your claim, if you don't mention it. Had a cuff inflated on your bicep? That counts as being tested for high blood pressure.

The bank staffers selling mortgage insurance are unlicenced and rarely trained to explain the details and legalities of those insurance products. The results is people who pay premiums and think they are covered, only realise later that they are not.

Source : CBC NEWS FEB 6TH 2008.