MORTGAGE Protection Insurance
We have you covered
Just before you sign off on your mortgage, we are required to tell you about mortgage protection insurance.
Prepare for life’s complications – plan ahead! It’s the unexpected events in life that can cause you the most stress. Did
you know that 65% of Canadians would have trouble covering their living expenses, including the mortgage, for more
than a few months if the primary wage earner died?* What would your family do if something unfortunate happened
to you and they were left to make the mortgage payments on their own?
Mortgage Protection Plan insurance provides a quick and easy solution. Mortgage Protection Plan® (MPP) insurance is
optional life and disability insurance coverage, insured by The Manufacturers Life Insurance Company (“Manulife”).
It can protect your investment while helping secure your family’s financial well-being in the event of your death or disability.
MPP insurance offers flexible premium payment options that allow you to pay your premium in smaller installments.
Look at the quote section on your application form for your initial premium payment frequency. Every eligible applicant is approved for some kind of coverage.
You won’t be denied coverage regardless of your health. You are eligible to apply if you’re a Canadian resident between 18
and 64 years old and are a borrower, co-borrower or guarantor on a residential mortgage, up to $1,000,000, arranged by a mortgage broker who offers MPP insurance. Even if you don’t qualify for full life and/or disability coverage, you can receive accidental death for 50% of the full life premium, and/or accidental disability insurance for 60% of the full disability premium.
Applying is easy, plus you have the option of immediate protection. Your coverage can begin the minute the insurer
receives your application and premium payment information. Or you have the option to delay the coverage start
date to match with your mortgage funding date. If you want to delay coverage, check the box, “I want to delay my
coverage start date to match the funding date” on your application. One phone call may be all it takes to complete your application. When you apply for MPP insurance, you may be asked some questions about your health on your application
and/or via a medical interview over the phone.
Your answers will determine if medical tests are required, which would be completed at a mutually convenient time.
Based on those tests, coverage level and premium will then be determined. If your insurance is to start immediately,
you will continue to be covered while we complete the medical review of your file. You’ll receive confirmation of your
coverage by mail. Valuable Features When you make a life or disability claim, the coverage offered through MPP insurance
can help see you through these challenging times. We are able to provide you with valuable extra benefits like the Life Bridge
Benefit and the Disability Bonus.
Coverage is portable with your mortgage. You will not lose your coverage (or have to re-qualify) no matter how many times
you change homes or lenders in the future, and premiums (based on your original mortgage amount and amortization
period) don’t increase with changes in your health or because you get older. Blend and extend your coverage You may
apply for additional insurance to cover a significant change to your mortgage, if you are eligible. If you have MPP insurance
and are applying for additional insurance. This will tell us that you’re applying for an increase in coverage. The
additional coverage will work as follows: • I
If you already have life coverage with us, and are applying for additional life
coverage now, your initial life insurance benefit under the new certificate will equal your new refinanced debt minus your
initial life insurance amount on your existing certificate. • If you already have disability coverage with us, and you are applying
for additional disability now, your initial disability benefit under the new certificate will equal your new mortgage payment
amount minus the initial mortgage payment amount on your existing certificate. The additional coverage premium will be calculated using your age at that time and the rates then available. You’ll keep your existing coverage at your existing rates,
and the payment frequency for your existing insurance will change to match your new frequency, if different. The combined insurance may not cover your full debt or payment. Please see your certificate for details.
IMPORTANT MORTGAGE PROTECTION INFORMATION Buying a home is likely one of the single largest purchases you will
make in your lifetime. It is also an investment in your family’s financial future – an investment that needs to be protected.