Your home may be your greatest asset, but at the end of the day, the most important thing in life is family. With the rise of illness, household debt at an all-time high, and Canadians carrying bigger mortgages, financial protection is more important today than ever. That’s why Manulife Mortgage Protection Plan was created. Coverage is here for you and your family if the unexpected happens. It can help ensure your mortgage payments are made and your loved ones are taken care of.
The Big Advantage I See
Creditor insurance on a mortgage, like many other creditor insurance policies offered by banks is typically post-underwritten. This means that the full underwriting process, which assesses the risk and eligibility for the insurance, occurs at the time a claim is made rather than when the policy is first issued.
With post-underwritten insurance, while you can usually obtain coverage quickly and with minimal health questions at the time of application. The banks like this because it enables them to easily sell the product without much ‘friction’.
The Big Problem
When an insurance policy is post-written, the detailed assessment of your health and other risk factors happens only if and when you need to use the insurance. This can sometimes lead to claims being denied if the post-claim underwriting process uncovers conditions or details that would have made you ineligible for coverage from the start. Sometimes claims get denied just because someone at the bank helped an applicant fill out a form, something they are not supposed to do, and that’s enough to get a claim denied.
So there you are, thinking you have coverage, paying all your premiums, only to find that because your policy was post-written, you actually have no coverage or protection at all.
Manulife Protection Plan is Pre-Written
It’s important to read the terms and conditions carefully and consider whether you might be better served by a policy that is fully underwritten, or pre-written at the outset, before you ever need to make a claim. Such policies typically involve more extensive health assessments when you apply, but they provide greater certainty about coverage. Pre-underwritten policies ensure that all conditions and risks are assessed upfront, reducing surprises at the time of a claim.
What is Manulife Mortgage Protection Plan?
It’s optional life and disability insurance that you can purchase to help protect yourself, your loved ones and your home against the unexpected. It’s a convenient, affordable choice whether you have no insurance or want to add to your existing coverage.
There are two types of coverage available to you:
- Mortgage life insurance pays off the outstanding mortgage balance in the event of a death.
- Mortgage disability insurance makes the mortgage payments for you if an extended illness or injury means you can’t work.
61% of Canadians indicate they personally need life insurance coverage.
87% of Canadians agree that credit protection insurance is an easy way to protect themselves and their family
Mortgage Life Insurance
Help ease the financial strain on your loved ones with coverage that will pay the mortgage balance if the insured mortgage holder passes away.
Manulife can provide coverage for up to $1 million.
Manulife will also cover mortgage payments until your submitted life insurance claim is settled. You’ll have the money you need, when you need it.
1 in 5 households would face immediate financial uncertainty if a primary wage earner suddenly passed.
20% of all deaths in Canada are caused by heart disease
1 in 2 Canadians only have 2 years (or less) of their salary covered if they pass away.
Total Disability Insurance
Disability insurance will cover your monthly mortgage payment if you are totally disabled for 60 days or more, so you can focus on getting better. Disabilities can include both physical and mental health issues. Manulife can provide coverage for up to up to $10,000 per month for a combined maximum of 24 months.
You’ll even receive a bonus disability payment to help you get back on your feet once you return to work if you haven’t already received the maximum number of payments.
1 in 3 Canadians will be disabled for 90 days or more before age 65.
56% of Canadians who took time off for a disability said they returned to work early due to financial reasons.
33% of workplace disability claims are related to mental health.
What I Like About This Product
Manulife Protection Plus Total Disability Insurance does not need to be disclosed. Most Disability products ensure you can never end up with more than 80% of your pre-disability income. Because this product is tied to your mortgage, it does not need to be reported, and as such, you could end up with over 80% of your pre-disability income. There is no other product like it.
More Benefits:
Coverage can start immediately
No waiting. Your coverage can begin as soon as you complete your application.
Coverage moves with you
Moving or changing banks? Your original coverage moves with you.
Budget-friendly payment options
A variety of payment options, including monthly, semi-monthly and biweekly.
Premiums waived if you lose your job
New Waiver of Premium due to Job Loss benefit pays your premiums for up to 3 months if you lose your job, and you’ll never have to repay.
You’re covered wherever you work
Coverage isn’t dependent on your place of employment. Your coverage stays with you wherever your career takes you.
Top-up existing coverage
You may have disability or life insurance coverage through your employee benefits, but do you have
enough to cover your mortgage? With Manulife Mortgage Protection Plan, you can easily add to your existing coverage.
There’s no financial review
You can get approved for coverage whether you work or not, as your approval is based on your
mortgage — not your income.
60-day money-back guarantee
Review your coverage in detail and if you change your mind within the first 60 days, you will get your
money back.
Top Up Coverage During Refinance or Purchase
Your original premium stays the same and coverage can go back up to what was originally qualified for. If additional coverage is required, premiums will be calculated only on the incremental amount at your current age and will be added to your existing premium.
Coverage if you become terminally ill
The new Terminal Illness benefit covers your mortgage payments if you’re diagnosed with a terminal illness.
How Different Insurance Plans Can Work Together
There are so many insurance products that can help protect you and your family. So, what makes Manulife Mortgage Protection Plan different from other plans, like term life insurance or employee benefits? Review the below to learn about the different types of coverage and how they can complement one another.
Manulife Mortgage Protection Plan
- Helps cover the mortgage. Paid directly to your bank to reduce or eliminate the debt.
- The application process is integrated with the mortgage application process. Coverage stays with the client if they move or switch banks.
- With the mortgage covered, other insurance plans are freed up for other needs, like retirement, children’s education, and more.
Term Life Insurance
- Helps minimize the financial impact and provides security for a family in the event of an untimely death. Paid to the named beneficiaries.
- Premiums are paid for a defined period of time (term) through a contract with your insurance
company. - The death benefit can be used however the beneficiaries like. Common uses: funeral expenses, replacement for lost income, basic living expenses, children’s education.
Employee Benefits
- Employee life and disability benefits can be part of an employer’s contract with them.
- These benefits are part of a group policy and based on employment. Employees lose coverage
when they leave their job. - Employee benefits can help with day-to-day expenses. Typically, employee life insurance covers
1 to 2 times the individual’s annual salary, and 60% to 70% of their income for disability insurance.
NOTE
As a licensed mortgage agent, I can discuss and provide information on products like disability insurance or Manulife’s Mortgage Protection Plan life insurance, as these can be relevant to the mortgage process. However, there are specific limitations:
Referral
As a Mortgage agent, I refer clients to licensed insurance agents or brokers who are authorized to sell life and disability insurance products. As a mortgage agent, I facilitate the introduction but do not engage in selling or negotiating the insurance contracts themselves. For this information, I will refer you to a Manulife insurance professional who is not a commissioned salesperson and is an expert on these products.
Information Sharing
While I can discuss the general benefits and the importance of such insurance products in protecting one’s mortgage investment, it is best to speak with a Manulife insurance professional to have detailed discussions about policy specifics, premiums, or personal suitability.
Essentially, a mortgage agent’s role in discussing products like Manulife’s Mortgage Protection Plan is limited to highlighting the need for such protection and referring clients to qualified professionals.
