When you buy a house, it is natural to want to protect your investment in case the unexpected happens. The unexpected can be a serious accident, disability or even death.
Mortgage life and disability insurance provides a safety net for you and your family. It enables you to pay off the outstanding balance on your mortgage in the event of your death or make your monthly payments in the event of a disability.
Your home is an investment that is worth protecting. What would your family do if something unfortunate happened to you? Would making the monthly mortgage payments be difficult? This is where mortgage life and disability insurance comes in.
Eligible* Home Trust borrowers may purchase optional mortgage life and disability insurance through Credit Security Plan™ (CSP), underwritten by The Manufacturers Life Insurance Company. CSP can help you pay off the outstanding balance of your mortgage, should an unexpected death occur. It can also help cover your monthly mortgage payments if a serious accident or illness leaves you totally disabled1 and unable to work for at least 60 days.
*To be eligible to apply, you must be
- At least 18 years of age and under 65 years of age
- A resident of Canada2 (excluding Quebec)
- Your mortgage is secured by property located in Canada, other than Quebec
- The borrower, co-borrower or guarantor of a Home Trust mortgage of $1,000,000 or less with a monthly payment that is less than $10,000.
- Life insurance coverage up to the outstanding balance on your Home Trust mortgage (subject to a maximum of $1 million).
- Disability insurance coverage (up to $10,000 / month for a maximum of 24 months) to protect you in the event a serious accident or illness leaves you unable to work.
- You have the option to select life or disability coverage or both life and disability coverage.
- Every Eligible* applicant is approved for some kind of coverage regardless of their health status. Please refer to the Brochure for further details.
- 60-day money-back guarantee: you can have coverage in place while you review the coverage and terms and conditions in greater detail.
- The insurance is optional: if you are Eligible*, you can add it to your mortgage or cancel it at any time.
How it works:
- Your premium is based on your age when you apply, the balance of your mortgage and your amortization period provided on your application. Your premium does not increase in the event of changes to your health or because you get older3.
- For most clients, a telephone interview is all that is required to complete the application4.
- Your life insurance benefit covers your mortgage debt up to the amount owing on your mortgage at the time of your death.5
- Your disability benefit is based on the initial monthly mortgage payment stated on your CSP application and whether all mortgagors purchase CSP.6
- Insurance premiums are automatically collected monthly from the same bank account as your mortgage payments, by The Manufacturers Life Insurance Company. If you wish to change the bank account from which premiums are taken, please call 1-800-295-6472.
- You will receive confirmation of your coverage and premiums by mail.
- Home Trust will receive compensation for every CSP Certificate of coverage issued and for providing certain administrative services in respect of CSP Certificates.
The Manufacturers Life Insurance Company
1 If you work at least 20 hours per week for at least 40 weeks in the 12 months before you become disabled, or if you are seasonally employed and work at least 20 hours per week for 13 consecutive weeks in that period, then you are totally disabled if you can’t perform the essential duties of your normal job due to illness or injury. Otherwise, you are totally disabled if you can’t do at least 2 of the following activities of daily living without another person’s help: dressing; eating; getting out of bed; toileting; walking
2 You must be a resident of Canada for income tax purposes, in accordance with Income Tax Folio S5-F1-C1, Determining an Individual’s Residence Status.
3 Manulife reserves the right to change premiums in limited circumstances. For more detailed information, please refer to the Certificate of Insurance.
4 When you apply, you will be asked questions about your health over the phone. Based on your answers, further medical examination and testing may be required. The results of such examination and testing will determine your coverage and premiums. If you fail to complete the telephone interview and/or required examination and testing within 30 days from the day Manulife receives your application, coverage will be limited to accidental death and/or accidental disability, as applicable.
5 If you don’t have a traditional mortgage or are partially insured under CSP insurance, your life insurance may not cover your whole mortgage debt. Please see the certificate for details If you don’t have a traditional mortgage or are partially insured under CSP insurance, your life insurance may not cover your whole mortgage debt. Please see the certificate for details
6 In some cases, your disability benefit may be less than your actual monthly payment. For example, if you have joint coverage, your benefit share is 50%. The benefit share is shown on the Coverage Summary page issued to you with your certificate