Are you a planner? And with that, I mean, do you plan everything out thoroughly and make sure that you have your t’s crossed and your i’s dotted in case of any emergencies? Well, then you may want to consider Mortgage Protection Insurance. Do you know what mortgage insurance is? And no, it is NOT home insurance. It is also not to be confused with mortgage loan insurance. Mortgage Protection Insurance will help you and your loved ones to pay the mortgage if something happens to you. This insurance is not mandatory, but it is recommended.
When applying for a new mortgage, every individual will be offered life and disability insurance. It is our responsibility as a mortgage broker to recommend Manulife’s Mortgage Protection Plan. Even if you don’t want or need it, we still require your signature to indicate that the insurance was offered.
Like most things, some pros and cons go with it. Of course, the biggest pro is that your mortgage is covered in the event you pass away. That means one less thing for your family to worry about.
|Coverage can start immediately.||Decreasing payout.|
|No medical exam is required.||The lender gets the payout money.|
|Budget-friendly payment options.||Creditor validates your coverage after you pass away.|
As soon as you have been approved for your mortgage protection insurance, your coverage can start. You have the choice of starting immediately or from the date of home possession. There is no medical exam required when applying for insurance. It is your choice as to when you pay your premium; you can choose from monthly, semi-monthly, or weekly options to work with your specific needs.
When you apply for mortgage protection insurance, you apply for the total amount of your mortgage. However, your premium remained the same. The policyholder’s family never sees it as it goes directly towards paying the mortgage when it comes to money. So, say the policyholder passes away ten years later, their premium will only payout for the mortgage amount you owe at the time of your death; rather than the amount you originally paid for.
When it comes to Manulife specifically, there are three different mortgage protection plans or combinations available. Firstly, there is mortgage life insurance that covers the mortgage if the policyholder passes away. Secondly, there is mortgage disability insurance which covers the monthly mortgage payments if the policyholder is disabled for 60 days or more. The third is a combination that would include securing both types of insurance, and therefore you would be covered for both death and disability.
Nobody wants to think of the unthinkable, but sometimes it’s good to know the options before it’s too late. Give us a call at 905-997-7001 for your mortgage needs. We will be sure to connect you with the appropriate personnel to suit your specific needs.