Mortgage Protection Plan (MPP): Lastly in our insurance series, we look at mortgage protection plan coverage. 

This is optional coverage, but should be a priority when purchasing property. The purpose of this coverage is to protect your investment, and cash flow, should you or your co-borrower be unable to work due to illness or an accident, or if one if you were to pass away.  

A mortgage on a principal residence you occupy with a spouse or partner is typically based on family income.  If one of the partners on the mortgage is no longer able to contribute to regular payments, MPP can cover your mortgage payments for up to two years in the case of a disability, and it can pay off the mortgage in its entirety under Life coverage..  These benefits provides support for you and or your family during potentially stressful times.

Disability coverage is important considering the statistics:

•         Expenses increase during times of illness or injury
•         44% of claims are made within the first 2 years of a mortgage
•         50% of Canadians will develop cancer in their lifetimes.
•         1 in 3 are disabled for 90 days or more before the age of 65
•         10 months is the average length of time disabled claimants are off work
•         Coverage is available for homemakers as well, which can assist in covering  childcare costs should this be required

Life insurance arranged through work does not often cover the full balance of a typical mortgage in many expensive markets..  Life insurance covering the entire mortgage gives you the piece of mind your family’s home will be taken care of should something happen to you or your partner.    

Insurance costs can increase as you age, but the MPP payment can be decreased as the mortgage balance it’s covering goes down.   

MPP is incredibly flexible.  It’s portable across properties and unlike bank policies, coverage is portable across lenders if you switch lenders if I find you a lower rate at the end of your mortgage term.  

Coverage can be brought back up to the original amount at the original payment later as well even as you age.  Should you upsize, downsize, or make a lateral move later, you can port the full original amount of the coverage at the payment amount set at your younger age.  You can also add coverage from there and blend the extra funds priced at your new age, with your original lower cost coverage if your mortgage is larger on the new property.  This helps keep overall future Life and Disability protection costs down as well. 

Ask me how the first one or two months of Life and Disability can be free and how coverge can be instant.  Why not activate free insurance today and take a few months to ensure you’re adequately covered for the largest investment you may ever make, or may already have made.

If you have any questions about mortgage insurance, or to discuss the best options for you, please do not hesitate to reach out.

The fine print: Terms and conditions apply and this information is subject to approval and change.

Adapted from DLC Marketing