Your top questions about Mortgage Protection Insurance – answered by an expert

Buying a home can be overwhelming, especially with all the fine print that comes with it. Most assume the only option when getting a mortgage is getting mortgage insurance from their bank, but another option protects your home and your loved ones.  

Mortgage protection insurance is a type of life insurance that focuses on mortgage coverage. 

CAA Protect puts it simply: it's insurance for you and not the bank. It helps cover your mortgage balance in case of unexpected life events, with key advantages over standard lender-offered plans.  

Here are some common questions – and answers – to help you understand why CAA Protect's Better Mortgage Protection might be the right fit for your home.  

What types of coverage are available? 

Most places offer similar types of mortgage insurance protection. The key feature is that every plan helps cover your mortgage payments in the event of a death or disability, ensuring your loved ones can keep the home without any financial burden. 

Additionally, you can choose a term that lines up with the length of your mortgage, giving you the confidence that you'll be covered for as long as you're making payments.  

When shopping for mortgage protection insurance, try to look for a policy that puts you first. And that's what CAA Protect's Better Mortgage Protection Insurance does.  

It provides support in the event of any disability and critical illness, or major life changes such as divorce or separation. It also includes the ability to convert to permanent life insurance without needing any additional medical tests. 

Is it mandatory in Canada?  

Mortgage protection is not legally required in Ontario; however, it is considered a valuable tool for long-term care planning.  

Better Mortgage Protection gives you an extra layer of security, so your home is covered when things get tough.  

How is Better Mortgage different than a lender?

Imagine you're nearing the end of your mortgage term, with just a few years left, and you need to make a claim. With a traditional mortgage insurance policy, the payout goes directly to the lender to cover the remaining amount, often leaving you with little to no amount left for your beneficiaries.  

Better Mortgage Protection works a little differently. If you bought a policy with $500,000 in coverage, your beneficiaries would receive the full $500,000 when the policy is purchased. This ensures your loved ones have access to the full benefit amount, even if it's at the end of the term.  

Unlike a lender's insurance, Better Mortgage Protection gives you control. You choose the beneficiaries, and they receive the full amount. This allows them to use those funds for mortgage payments, lifestyle expenses, debt repayment or other needs. 

Is buying your mortgage protection from an insurance company better than from a traditional lender?   

CAA Protect's Better Mortgage Protection offers many benefits that a bank would not provide with its traditional mortgage insurance from a traditional lender.  

With Better Mortgage, you'll get the chance to work with a licensed insurance advisor to get coverage tailored to your needs and lifestyle. Your coverage and premiums remain the same even as the mortgage declines. And, you have the option to keep the policy even if you switch lenders.  

CAA Members who also have a CAA Protect policy get access to Maple Health, Canada's premier online medical services, and a free will kit to help you plan your future. 

Plan better with CAA 

Save up to $78 with Better Mortgage Protection, and help protect your home and loved ones.  

Do you still have more questions? Visit our website for Better Mortgage Protection, or call 1-800-709-5809 to speak with a licensed insurance advisor.