Mortgage Insurance from your bank or lender may be sold to you by an unlicensed person, who is not an insurance agent. There may be only a few health questions asked. At the time of death, the insurance company can look for a pre-existing illness and also talk to the individual's Doctor. (Underwritten at time of claim)  The insurance sometimes is not paid out.  Alberta Insurance Broker will advise you to purchase insurance that is "underwritten at time of issue".  This means all the health questions are asked now, and your Doctor may be contacted, at the time that you apply.  If the policy is issued, it will pay out regardless of pre-existing illness.