What are the main differences between insurance offered by a financial institution and independent plans?

The choice regarding portability and premium collection captures key distinctions between insurance offered by financial institutions and that provided by independent plans.

Portability refers to the ability of a policyholder to maintain their insurance coverage when they transition to another job, move between provinces, or wish to switch insurance providers. Independent insurance plans often offer more flexibility and portability than those tied to a financial institution, which may limit property or health insurance options based on the borrower’s financial situation or association with that institution.

Premium collection is another critical difference. Financial institutions generally bundle insurance with their financial products, such as mortgages or loans, which may result in automatic premium collection as part of monthly payments. Independent plans, on the other hand, typically allow for more tailored premium payment options and collection methods since they operate outside of the financial products offered by institutions.

The other choices involve aspects that either don't distinctly categorize the differences between the two types of insurance or are less relevant. For instance, while coverage types and payment methods may vary, they do not singularly define the comprehensive differences regarding how institutions and independent plans work in context with portability and premium collection. Similarly, interest rates and terms of service more directly pertain to loans and financial products rather than the insurance coverage itself.