Do you have a mortgage? Then there’s likelihood you have mortgage insurance. This type of insurance is provided by the lender and not the government (CMHC insurance). The purpose of lender mortgage insurance is that if you become utterly ill or pass away before paying off the mortgage, the coverage will kick in and pay it off for you. It is intended to offer the consumer assurance that your family will not have the financial burden of a mortgage when you are deceased or gravely ill.
There’s a huge grey area when it comes to this. In this video (provided by CBC Marketplace), two families who acquired the coverage and thought they were protected, later realized that their claims had been turned down when loved ones became sick or died. In each case, the insurer claims that each party falsely filled out the required forms.
It turns out a regular visit to the doctor could be reason to deny your claim, if you don't mention it. Have you had a nurse or doctor put on a cuff to inflate on your bicep? That counts as being tested for high blood pressure.
As the report entails, bank employees who sell mortgage insurance are unlicensed and rarely qualified to explain the details and legalities of these insurance products. The results are people who pay premiums and think they are protected; later realize that they are not.