The Mortgage Protection Plan
Your home is not only your largest single investment, but it is also where you have chosen to raise your family. If your mortgage is not protected, you risk losing everything you have worked so hard for. The simple truth is that illness or death can happen to anyone of any age at any time. In fact,
- 44% of mortgage insurance claims have made within the first 2-years of the mortgage (Source: Over 10 years of MPP claims data).
- 11.4% of working age Canadians, suffer from a form of disability with 43% of those disabilities severe or very severe.
With today's high cost of living, taxes and mortgage payments, it's more difficult to save than every before. An unexpected death or illness can be financially devastating for your family.
The Mortgage Protection Plan was created as an affordable, simple and convenient solution. It allows you to protect your investment right away - at the same time you arrange for your Mortgage. There is no reason to gamble - you can insurance your mortgage now and you can cancel at any time. We'll even refund all your premiums if you find a better solution within out 60-day guarantee period (even if you just change your mind).
More Affordable Than You Think
The Mortgage Protection Plan was designed to be more affordable than you think! In fact, a typical couple can save 300% over a very competitive term life product. Unlike terms life products, Mortgage Protection Plan premiums do not increase automatically as you get older.
In this case, Mortgage Protection Plan starts out being slightly more expensive. However, over the 25-year mortgage term the cost is three times less expensive. Not only is it 33% cheaper per dollar of coverage, but the overall coverage is designed to reduce as the balance of your mortgage declines. So you don't pay for any wasted coverage.
Flexible Terms So There's No Need to Gamble
With the Mortgage Protection Plan we've made it easy and simple to get the protection you need now. For most applications, there is no medical exam and we will have your certificate on its way to you within 5 days.
There is no reason to gamble - you can insurance your mortgage now and you can cancel at any time. We'll even refund all your premiums if you find a better solution within out 60-day guarantee period (even if you just change your mind).
Unlike similar plans offered by mortgage lenders, Mortgage Protection Plan is independent of your lender. This means that you are free to negotiate the best mortgage deal at renewal without having to worry about losing your protection. You're also never locked in.
Compare Benefits
Over 110,000 Canadians have made the Mortgage Protection Plan Canada's #1 choice for independent mortgage protection.
| Compare Benefits | Typical Term Life Insurance | Typical Lender Creditor Life Insurance |
Mortgage Protection Plan |
| Pay Off Mortgage | Yes | Yes | Yes |
| Covers Prepayment Penalties and Discharge Fees | No | Yes | Yes |
| Covers Mortgage Payments while adjudicating the claim | No | No | Yes |
| Independent of Lender | Yes | No | Yes |
| Coverage Declines to match Risk | No | Yes | Yes |
| Total Disability Option? | No | Not usually | Yes |
| 60 Day Refund? | No | No | Yes |
Insurance Plan Option
There are two Mortgage Protection Plan products. Find out which one will benefit you the most!
| Mortgage Protection Plan Life Insurance |
Mortgage Protection Plan Total Disability Insurance |
|
| Protection | In the event of death | A sickness or accident results in your being unable to perform the main duties of your full time job or if you do not have a full time job, unable to perform at least two essential daily life activities. |
| Coverage Starts | You can choose to start coverage immediately or on the mortgage funding date (provided you apply prior to funding date). In most cases, we recommend immediately, since you may be committed to completing the house purchase. You must pay the first premium when due for coverage to take effect. | Same as life |
| Coverage Ends | Earliest of 70th Birthday, date the mortgage is paid off or date your stop paying premiums | Earliest of 65th Birthday, date the mortgage is paid off or date your stop paying premiums |
| Benefits | Outstanding balance of your mortgage as at the date of your death
Interim claim payment to cover mortgage payments while we are adjudicating your claim; and Pre-payment penalties or discharge expenses charged by your mortgage company or mortgage registrar |
Your share of the Mortgage Payment
If you are the only borrower who is covered for disability then your share is 100% If two borrowers are covered, then each borrower's share is 50% |
| Limitations | 105% of the Mortgage Amount on your Submitted Application. Maximum of all benefits for any one person is $1,000,000 | Payment Amount shown on your Submitted Application. Maximum of 12 months worth of benefits Maximum of all benefits for any one person is $10,000 per month |
| When Benefits are Paid | Once we receive a completed claim form, we pay future mortgage payments on your behalf until we finish adjudicating the claim and so long as the claimant continues to cooperate with us. Once we approve the claim we pay the remaining balance | Benefits begin 60 days following your valid disability and will continue until the first mortgage payment after your recovery (so you get a bonus payment after your recovery). Timing of actual payment is subject to our completing the adjudication of the claim |
| Exclusions | Inaccurate or incomplete answers to medical questions on Submitted Application Suicide occurring within the first two years of coverage Traveling in or jumping from a non-commercial flight Attempting to commit, committing, a criminal offence (extends to driving while legally impaired)' and acts of war | Same as for Life Insurance, plus self-inflicted injury; pregnancy/childbirth (complications are covered); abortion; miscarriage; conditions arising from drug or alcohol abuse; cosmetic/ elective surgery; use of any drug (except in accordance with a valid prescription); medical condition or symptom, diagnosed or not, for which you sought, received or were recommended for treatment in the 12 months before applying for MPP, and which caused your Total Disability within 12 months of the date you apply |
Ask your Capital Direct mortgage specialist for Canada's #1 Choice in Independent Mortgage Protection and start securing your family's future.
Mortgage Protection Plan (the "Plan") is an insurance program designed to provide life and disability protection to the clients of mortgage brokers. The Plan is underwritten by The Manufacturers Life Insurance Company (the "Insurer") and administered and managed by Lorriman & Long Management Inc. and its appointed agents (collectively these parties are called "MPP").
Coverage under the Plan is optional. Your Mortgage Broker's role is to have you complete the pre-printed MPP form ("Application"). If you require advice or additional information concerning the Application, please contact MPP.
For other insurance advice, please consult a licensed life insurance agent of your choice.
