think of it as an impenetrable force field around your loan and mortgage payments
You likely wouldn’t buy a television, a piece of furniture, or even a new car without warranty, so why would you get a loan or mortgage without credit insurance? We know what you’re probably thinking, “is this something I actually need?” While the decision to purchase credit insurance is totally up to you, it’s important to keep in mind that, without it, you may not be able to ensure that your debts are taken care of. With a wide range of insurance available including credit life, disability, mortgage, level term, and accidental death insurance, we can help you find the right insurance for your individual needs.
We also know that insurance can sometimes be complicated, so here are answers to some of the basic questions many people have regarding our loan and mortgage protection insurance.
Loan and mortgage protection insurance Q & A
Why would I need loan or mortgage payment protection insurance?
Think of it this way… you’ve been approved for a loan and then all of sudden something happens and you are no longer able to make your monthly payments. Instead of risking losing your new purchase or leaving your family with this additional debt, our loan and mortgage protection insurance (available through Valeyo) can help you make your monthly payments until you are able to do so again on your own.
What am I covered for and for how much?
With our loan and mortgage payment protection insurance, both life and disability coverage are available. Life protection will cover a maximum of $100,000 per loan, or $500,000 for mortgage, level term, or outstanding balance with the combined total not to exceed $500,000. Disability insurance will cover up to $1,500 per month for a maximum of 72 months for a loan, and up to $3,000 per month for up to 24 months for a mortgage.
You also have the option to adapt your plan to fit your individual situation. You can apply for either life or disability depending on what you need and if you have coverage elsewhere.
What if I already have insurance through work?
That’s great! Knowing exactly what your other insurance will and will not cover is very important. It could mean a big difference in what you would receive in monthly income, or what your family may receive in a lump sum payment to cover living expenses, and loan or mortgage payments. With most other life and disability insurance, if something were to happen to you, you (or your family) would receive a lump sum from the insurance company to cover all of your expenses. In comparison, with loan or mortgage protection insurance, your loan and mortgage payments are taken care of if something were to happen, eliminating that additional expense and freeing up your work income for other expenses.
How much does it cost and how do I make your payments?
The amount you pay for your loan protection insurance is dependent on the amount of your loan or mortgage. For a loan, your insurance is worked directly into the amount of your loan payment. With a line of credit, the payment is calculated based on your average monthly balance and is debited around the middle of each month. Mortgage payment protection and level term insurance are a bit different. This is a separate payment that comes directly out of your chequing or savings account around the middle of each month.
Am I eligible?
For loans, members between the ages of 16 and 65 are eligible for life insurance, while members ages 16 to 59 are eligible for disability insurance. For mortgages, members 18 – 65 are eligible. Additional criteria may be required in order to be eligible but we will go over all of that during the application.
The good news is that for many, it may not be necessary to have a medical examination when you apply. Instead you will just need to answer a couple of simple health questions. A medical examination may be needed depending on your individual situation but all of that will be discussed during the application.
Can I change my mind after I’ve already enrolled?
Payment protection insurance is available with a 30 day right to examine, meaning you can choose to opt out within the first 30 days and receive a full refund on any premiums paid. Any insurance coverage can be cancelled at any time with written request.
Where can I get more information about loan and mortgage payment protection insurance?
For more information about our loan and mortgage protection insurance, please contact an associate at your local branch.