Mortgage Protection Insurance

Insurance to help protect your mortgage and payments.

When purchasing a home, you may hear about several types of insurance, such as homeowners or property insurance, mortgage default insurance, title insurance and Mortgage Protection Insurance.

Mortgage protection insurance is creditor insurance that protects you against certain circumstances where you may be unable to continue paying your mortgage. Different than default insurance (which protects the lender, not you) this type of insurance is a voluntary option for you, as a homeowner, to consider.

What is mortgage protection insurance?

This type of insurance pays out to the lender, not you or your family, and is considered creditor insurance.

A mortgage protection plan can be a simple, convenient solution that helps protect your home investment and can be arranged through your lender when your mortgage contract begins.

It provides life and disability protection to cover your mortgage in the event of unexpected illness or death (conditions will apply and details may change):

• 44% of Mortgage Protection Plan claims have been made in the first 2 years of a mortgage (Source: over 10 years of MPP claims data).
• 11.4% of working-age Canadians suffer from some form of disability, with 43% of those disabilities severe or very severe (Source: Statistics Canada: 89-579).
• With this plan, your mortgage will be paid out in case of unexpected death or illness*

*Agreement and alignment with the Mortgage Protection Plan Provider's Terms and Conditions will apply.

Here's how Mortgage Protection Insurance (MPP) from Manulife works:

• Competitive Premium Rates. Manulife competes with the major banks to offer a competitively priced product, and its Disability product is among the least expensive in the industry.
• 60 Day Money Back Guarantee. You can choose MPP today and change your mind any time within the first 60 days, and it will cost you nothing.
• Fully Portable Product. You have future flexibility. This insurance plan can move from lender to lender and property to property. Premiums do not increase within the amortization period. If you've applied for additional money at a later time, only the 'topped up' portion will be priced at your current age.
• Auto Approval. Mortgage amounts under $300,000 ,where health questions have been answered 'No,' are auto-approved. You can have instant coverage if you so choose.
• No Post Claims Underwriting. A paramedical is required for mortgage amounts over $300,000 or when 'Yes' has been answered to a health question, which protects you. At their cost, medical issues are uncovered upfront, so that claims are more easily paid down the road should the need arise.
• Extended Amortizations. Extended amortizations may be covered at no additional premium cost.
• Disability Stand Alone. Most banks require you to purchase Life Insurance to obtain Disability. Manulife offers Disability on its own, with or without Life Insurance protection.
• Disability Not Reportable or Taxable. You won't need to report your Disability claim to either Canada Pension Plan (CPP) or your Private Insurer, and it is not subject to income taxes (because they pay the lender, not you).
• Interim Mortgage Payments. In the event of death, this MPP will make the interim mortgage payments while the claim is being adjudicated.
• Underwritten by Manulife. A trusted name and industry leader.

Have more questions about this type of mortgage insurance? We're here for you, anywhere you are in Canada.

If you're interested in a mortgage protection solution, we can refer you to an insurance advisor who may fit your needs.