What is it for?

Mortgage protection insurance in Canada protects you and your family by either paying off your mortgage or covering the mortgage payments for a certain amount of time if you pass away, get ill, or become injured. 

A good insurance brokers job is to come up with a plan for you while making sure that you don’t pay too much for your mortgage protection, find out how you can save up to 30{a03822e28c5c906589e58caafc71b922ff7b2692d58bfeefe8f12d55f85871c7} on your mortgage protection.

It can a provide a tremendous amount of financial relief at a time when your family or partner may be left with no means with which to meet the obligations of a mortgage on their own.

The idea is that if you pass away, become disabled, or critically ill, you may not be able to earn the same amount of money as when you were healthy.  Making up this short fall of income is what mortgage protection insurance is all about. It’s job is to provide that cash when you no longer can, so that your family or partner will be able to keep their home and not have to worry about the bank foreclosing on them.

In this way, a mortgage protection insurance plan provides a critical function which allows families to stay in their homes and get financial relief at a time when they need the most support.

What are the different types?

There are only three real risks to our health that are so grave as to cause us to lose our ability to earn money. Therefore, there are three different types of mortgage protection insurance, they are:

  1. Mortgage Life Insurance: Just as the name states, upon death, this is a type of life insurance that will pay a lump sum benefit that can be used to pay off the mortgage in its entirety. Letting your family have the security of a roof over their head without worrying about mortgage payments at a time when they are grieving.
  2. Mortgage Disability Insurance: This is a form of disability income protection that will pay off the monthly mortgage amount in the event that the insured becomes disabled and is unable to go to work.  If you get injured and are unable to work, having mortgage disability insurance will allow you to focus on what’s most important: regaining your health. You will know that the mortgage payments will be made on your behalf while you are regaining your strength.
  3. Mortgage Critical Illness Insurance: In Canada, Critical Illness protection will pay out a lump sum tax free benefit that can be used to pay off all or part of your mortgage. The good news is that because of advancements in medical science, many of us are surviving a critical illness. The bad new is that when we are recovering from this illness we may not be able to work. Not being able to work will result in having difficulty in making mortgage payments. The money that a Critical Illness insurance policy can provide can be used in any way that the beneficiary pleases and can mean the difference between a successful recovery or a stressful one. Canada is one of the only countries in the world that has a Return of Premium option on their Critical Illness policies. Find out more by getting in touch with one of our advisors.

When Mortgage Insurance is put in place properly, with the help of a licensed insurance professional, the individual is the one that owns that policy; they can customize the coverage. Having  options available to you in terms of how long their coverage lasts, and what you will do with the benefit is in your best interests. But when mortgage insurance protection is purchased at the bank, it is not designed to protect you, it is designed to protect the bank and is called creditor protection plan. Creditor protection should be avoided whenever possible when one is insuring their mortgage.  Make sure your insurance agent has many years of experience to help you get coverage with the best terms and conditions in the market.

Which one is right for me?

The right mortgage insurance protection for you will depend on your unique situation. Therefore, it is best to consult a licensed insurance professional who can design a plan that suits your needs, while getting you the best coverage possible and saving you money.

Make sure you are using a licensed brokers that can help identify your requirements by performing an insurance needs analysis. This will help them to know how much insurance is needed so that they can provide you with a free no obligation insurance quote and get started on putting a plan together for you. 

Once that is done our brokers will do a health and lifestyle evaluation with you to identify any obstacles that may exist in your lifestyle or medical history that could make it difficult to get insurance. There are many insurance companies in Canada so knowing which insurance companies to match up to your unique situation with can save you thousands of dollars in premiums. Even if previous medical conditions, or lifestyle risks exist, we have access to no medical exam insurance policies that will ensure you and your family have the protection when you need it most.

Take your financial security into your own hands and get in touch with us. The best investment is one that gives you peace of mind. Even though providing for your family in Canada can be difficult, protecting your family is easier than you might think.