Family Spending Leisure Time Outside with Kids, Grandfather Playing with Ball with a Children. People Throwing the Ball Between Each Other, Having Fun on a Lawn in Their Front Yard.

Worried about your mortgage? Here's how CAA's Better Mortgage Protection can help

By: Jessica Campbell
Published Date:

3 Minute Read

Committing to a mortgage is often one of the biggest investments Canadians make, so it makes sense to protect it, especially if anything should happen to you. But what about if you move, have a change of life situation, need permanent life insurance or want to choose your own beneficiaries? 

That’s where CAA’s Better Mortgage Protection is different. Unlike traditional mortgage insurance, it is not only flexible, but also underwrites the amount of coverage you need when a policy is bought.

CAA Magazine sat down with Jarrett Thompson, CAA North & East Ontario’s Managing Director of Insurance, to get the details.

How is Better Mortgage Protection different?

With traditional mortgage insurance, you choose the amount of coverage, but as you pay down the mortgage, the amount of coverage also declines. With Better Mortgage Protection, it stays the same. That $500,000 is the amount that's underwritten from the start, so no matter how much is left to be paid on your mortgage, your coverage is intact. That means when a claim is made, you are assured that your family is guaranteed the benefit.

Don’t premiums rise as you age with traditional mortgage insurance?

That's another big difference CAA Protect offers. The premium stays the same for the duration of the policy. In other words, you always know what you're paying regularly. Another interesting difference is that Better Mortgage Protection can be 30 per cent to 40 per cent less than traditional lenders' mortgage insurance, depending on your age and other factors.

Woman Spending Time With Her Dog Outside

Payments can be as little as $26.55 a month*. For most people, that's a significant savings compared to lender mortgage insurance. You can save up to $78 compared to lender mortgage insurance, and with CAA Protect, you also get a free will kit and membership to Maple, an online health service.

Is it life insurance for your mortgage?

Exactly. Better Mortgage Protection is actually life insurance. Unlike traditional mortgage insurance, which names the bank that holds the mortgage as the beneficiary, you choose your beneficiaries. They receive the full amount to pay off the mortgage balance, cover debts or simply for replacement income at a time they need it most. Traditional mortgage insurance dictates how the money is used, whereas Better Mortgage Protection coverage can be used in many ways.

That's a big difference. But there's another benefit to Better Mortgage Protection that people don't consider when they're insuring their mortgage. As a life insurance policy for your mortgage, there are no taxes when a claim is made. The payout can be used to clear a mortgage, funeral expenses and other debt.

What if you move or switch lenders?

Great question. Because it operates like life insurance, it goes with you. You don't need to renew, change policies or start over. If you move or change lenders, you take your protection with you, and the coverage remains intact.

What happens to the policy after a separation or divorce?

Better Mortgage Protection policy can be adapted to your changing circumstances in a few ways. There's also a built-in unique divorce or separation option. If your relationship situation changes, both parties can change to individual policies and are each entitled to 100% of the sum insured.

Can you change or extend this coverage?

Absolutely. You get to decide how long your coverage lasts. Once the term expires, it can either renew automatically or you can choose to convert to permanent life insurance, with no additional medical tests.** What's more, you have the flexibility to add term life, disability and critical illness coverage to take care of the unexpected in life.

Want to learn more? Call 1-800-709-5809 or speak with an advisor online.

*Based on a plan for 20-year term with $500,000 in coverage for a 37-year-old female, non-smoker with regular health. All insurance quotes and prices are subject to medical underwriting.

**Certain exclusions and terms and conditions apply. Have a question? To speak to a professional who can guide you to the right coverage from the right insurer at the right price call us at: 1-800-709-5809 or email us at info@caaprotect.ca