Your home is one of the largest investments you will ever make. The mortgage that comes with it is a big responsibility and can impact your family’s security. What happens, if you suddenly pass away, or you become sick and can’t work before your mortgage is paid off? No doubt you would worry about who will be left dealing with your financial obligation. Contact us for more on Mortgage Life Insurance
Nature of the Coverage
The Group Mortgage Loan Insurance provides the following protection:
Life Insurance
In the event of your death, the Insurer shall pay to your Creditor the outstanding Principal Amount Insured.
Accidental Death Insurance
In the event of your death due to an accident only, the Insurer shall pay to your Creditor the outstanding Principal Amount Insured.
Total Disability Insurance
In case of total disability, the Insurer shall pay to your Creditor a benefit equal to the Monthly Amount Insured, for a maximum of 24 monthly benefits.
Eligibility
To be eligible for insurance under the Group Insurance Policy, you must satisfy the following conditions on the effective date of insurance shown on the Certificate:
- You must be a natural person (partnerships, corporations or other forms of business entities are not eligible for insurance);
- You must be at least 18 years od age;
- You must have a mortgage lien with your Creditor;
- You must be a resident in Canada;
In addition, for Total Disability Insurance, you must:
- Be permanently employed and actively at work for wages or profit for at least 25 hours per week for 30 consecutive working days immediately prior to the effective date of insurance; or
- Be gainfully employed as a seasonal employee and must be so employed for 13 consecutive weeks during the 12-month period immediately preceding the effective date of insurance.
DISABILITY & LIFE CREDIT INSURANCE BENEFITS
- Protection for the surviving spouse;
- Portability to another creditor;
- 24 month term of the disability benefit;
- Insurability for the entire amortization;
- Possibility of buying disability insurance without buying life insurance;
- Elimination of debt in case of death of either insured; and