how important is it to choose your mortgage insurance carefully?

How important is it to choose your mortgage insurance carefully?

How important is it to choose your mortgage insurance carefully?

Your home...Your home...

• A valuable asset

• Your first major financial commitment

To protect it...To protect it...

• Does your current mortgage insurance offer you such regular coverages as:– protection in case of death (life insurance) – protection in case of disability– protection in case of critical illness

• Does your current insurance offer you the following advantages:– no increase in your premium?– possibility to designate the beneficiary of your

choice?– possibility to use the insurance proceeds

(following a death) as you wish?

NO?

Right now...Right now...

Right now...Right now...

• Does your disability coverage offer you:– the payment of your benefits regardless of the

duration of your disability?– the full payment of your monthly mortgage

instalment?– an insurance premium that does not increase

with the interest rates?

NO?

Are you sure...Are you sure...

… that you are fully covered by your current insurance?

Or simply,

… that you are even INSURED?

Uncertainty... Uncertainty...

• Is your financial institution able to certify that you are insured without even having checked your state of health?

Most financial institutions check your state of health... but only when you make a claim.

The consequences...The consequences...

• Some people are declined a benefit just when they need it most!

Could this happen to you?

A product that offers

reassuring protection

A product that offers

reassuring protection

• Level and guaranteed premiums• Contract independent of the loan• Protection against interest rate increases • Choice of beneficiary• Medical questions at issue to make sure you are

covered• Complete coverage: life, critical illness, disability

and additional benefits

The advantages of the The advantages of the Home Protection PlanHome Protection Plan

• Now let’s take a look at the protection offered by the Home Protection Plan as compared to other financial institutions

The HPP… and other financial The HPP… and other financial institutions institutions

LIFE INSURANCE HPP OTHERS

The amount paid in case of death will be: 100% Generally100%

The policyowner is: YOU Lendinginstitution

At death, the benefit is paid to: the beneficiaryof your choice

the lendinginstitution

When the loan is renewed, if you changelenders, the insurance usually continues.

TRUE FALSE

The insurance is convertable to regular lifeinsurance.

YES NO

The insurance premium is not affected byinterest rate increases in any way.

TRUE TRUE

Product structureProduct structure

LIFE INSURANCELIFE INSURANCE

DISABILITY

CRITICAL ILLNESS

ADDITIONAL BENEFITS(MGI, WPDis, AD, AD&D, AF)

Riders

100%

50%

Protection:• On an individual or joint basis• Always 100% of the loan balance• $10,000 to $1,000,000

– special quotes for > 1 million

Term:• maximum period of 30 years

Life insuranceLife insurance

Premiums • Based on you as an individual and not a pool of

clients– age, sex, tobacco use and mortgage balance

• Premium guaranteed for the entire term of the contract and is not affected by interest rate hikes

• Reducing premiums with lump sum payments of $5,000 per year


Conversion privilege:• permanent life insurance• without evidence of insurability• before age 65• for an amount equal to the mortgage balance

when the request is made



Extension:In addition to the conversion privilege, your HPP plan extends the insurance coverage for a period of 45 additional days following the death of the spouse, for joint coverage, at no extra cost!


Double payment:For a joint insurance coverage,

a double payment will be paid if one spouse dies within 45 days of another spouse!


Beneficiary: You can name a beneficiary other than the lender.

Advantages:– control over the benefit

– take advantage of a favourable interest rate situation at death


LIFE INSURANCE

DISABILITYDISABILITY

CRITICAL ILLNESS

ADDITIONAL BENEFITS(MGI, WPDis, AD, AD&d, AF)

Riders

100%

50%

• 1 person in 3 will suffer from a more or less extended disability before the end of their loan amortization period

• The average duration of a disability that lasts more than 90 days is 2.9 years

Disability… in statisticsDisability… in statistics

Source: CIDA 85 Disability Table; CSO 80 Mortality Table; CIAS 86-92 Mortality Table

80% of foreclosed mortgage loans are related to the borrower’s health!

FOR SALE

DISABILITY INSURANCE HPP OTHERS

If you become disabled, the amount paidby the Home Protection Plan will be:

50% or 100%,according to the

chosen option

According tothe chosen

optionWhen the loan is renewed, interest ratehikes will not increase the disabilityinsurance premium.

TRUE FALSE

A disability is: The inability towork at one's

own job for 24months

The inability towork at one's

own job,generally for

12 months

• At each insured’s choice

• Age at issue: 18 to 54

• Two levels of coverage:– 50%; 100%both insureds can opt for different coverage

• Waiver of premium included

Disability insuranceDisability insurance

• Two benefit duration choices:– 2 years– duration of the loan (before the insured

reaches age 65)

• Disability must occur before age 60• Waiting period:

– 3 months (retroactive to 1 month)


Definition of disability:

– First 24 months: regular occupation – afterward: any occupation for which you are

reasonably qualified

• Relapses are covered– with no waiting period for the same cause, within 3

months



LIFE INSURANCE

DISABILITY

CRITICAL ILLNESSCRITICAL ILLNESS


Riders

100%

50%

• The critical illness option provides for the payment of a lump-sum amount, equal to 100% of the mortgage balance, following the diagnosis of the following critical illnesses:

Critical illnessCritical illness

Cancer Stroke Heart attack Coronary artery bypass surgery Kidney failure Major organ transplant Multiple sclerosis Coma Paralysis Dismemberment Blindness Deafness

Muteness (loss of speech) Major burns Benign brain tumour Occupational injury - HIV Motor neuron disease Alzheimer’s disease Parkinson’s disease Cystic fibrosis Loss of independent existence Aortic surgery Heart valve replacement

Covered critical illnessesCovered critical illnesses

The lump-sum payment can be used as you wish:

– pay off the mortgage balance;– pay medical fees to receive treatment abroad;– pay for home nursing care;– allow your spouse to go on unpaid leave;– etc.


• Level and guaranteed premiums• Issue age: 18 to 64 • Face amount:

– 100% of the loan balance

• Duration of the protection:– duration of the loan amortization period (max. 30 years) – to age 75 if before


Joint insurance: • benefit payable on the first diagnosis of a

critical illness (Terminate the contract)

• in the case of simultaneous diagnosis of both insureds: double benefit



LIFE INSURANCE

DISABILITY

CRITICAL ILLNESS



Riders

100%

50%

For a few $, you can add the following additional benefits:

– Guarantee your current state of health as a benchmark should you wish to purchase additional insurance later with no medical questions.

– Stop the payment of your premiums during a period of disability.

– Double the payment of the face amount in the event of accidental death or accidental death and dismemberment.

– Obtain an additional benefit in case of accidental fracture.

Additional benefitsAdditional benefits

The only REAL mortgage The only REAL mortgage insuranceinsurance!!The only REAL mortgage The only REAL mortgage insuranceinsurance!!

how important is it to choose your mortgage insurance carefully?

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