Mortgage Protection Insurance: What You Need To Know
There are several types of insurance that come into play when you are looking to purchase a home. There is Fire/Home Insurance, CMHC Insurance, Title Insurance and Mortgage Protection Insurance. This article will explain the pros and cons of the last type of insurance, Mortgage Protection Insurance.
True North Mortgage offers Mortgage Protection Insurance to clients that are interested in the protection. We do not sell insurance, but are required to be informed about it and discuss the options available to you, the mortgage applicant.
What is Mortgage Protection Insurance?
Mortgage Protection Insurance is an affordable, simple and convenient solution that allows you to protect your home right away, at the same time you arrange for your mortgage. This protection plan is designed to provide life and disability protection to home buyers. Your home maybe your largest single investment and it is also where you have chosen to raise your family. The simple truth is that illness or death can happen to anyone of any age at any time. In fact:
- 44% of Mortgage Protection Plan claims have been made in the first 2 years of the 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 today’s high cost of living, taxes, and mortgage payments, it’s more difficult to save than ever before. With Mortgage Protection Insurance for Life and Disability, your mortgage will be paid out, in case of unexpected death or illness*
*Agreement and alignment with Mortgage Protection Plan Providers Terms and Conditions will apply.
We offer Mortgage Protection Insurance (MPP) from Manulife. Why?
- Competitive Premium Rates - They compete with the major banks to be a competitively priced product. Their Disability product is one of the cheapest 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. The insurance can move from lender to lender and property to property. Premiums do not increase within the Amortization period. If additional money is applied for, only the “topped up” portion will be priced at your then 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 in situations where “Yes” has been answered to a health question. This PROTECTS YOU! At great cost to them, they get the “medical skeletons” out of the closet UPFRONT, so they can pay claims down the road should they arise.
- Extended Amortizations - They will cover extended amortizations at no additional cost in premiums to you.
- Disability Stand Alone - The banks MAKE you take Life insurance in order to get Disability. They offer our Disability by itself…with or without our Life protection.
- Disability Not Reportable or Taxable - To either CPP or your Private Insurer and is NOT subject to income taxes, (because they are paying the lender).
- Interim Mortgage Payments - In the event of death, MPP will make the interim mortgage payments while the claim is being adjudicated.
- Underwritten by Manulife - A trusted name and industry leader.
Note: Rules and guidelines are subject to change. Please inquire within.