MPP primary purpose is to ensure mortgage holders and their families are fully protected on the event of an accident or health issue.
MPP is underwritten at the time of application when an MPP rep calls you and asks the health questions. You can expect the call to each applicant within 10 days after you complete the link or application form we send to you, should you choose apply for either life/disability or both.
As a mortgage broker we are obligated to offer this product as part of our duty of care to ensure that you and your family are protected from potentially devastating predicaments. You are not obligated to sign up for it and it is not a condition of your approval. Sometimes life has its own plans for you, and our role is to make you aware that this coverage exists.
There are two questions that you need to ask yourself.
1. Do you currently have life insurance in place, at this moment, for an amount equal to or greater than this mortgage amount? If not- then you will want to consider applying for mortgage life insurance
2. Do you have and does your disability plan pay enough to cover your mortgage payment and your life expenses if you find yourself needing time for illness treatment or from injury recover. If not you will want to consider applying for disability .
If you are thinking even 1% about taking this coverage, take it now. The best coverage is coverage period.
This coverage is pretty straight forward. If the unthinkable happens, your mortgage balance will be paid out.
52% of foreclosures in Canada are triggered by disability and this coverage kicks in whether you hurt yourself at work or at play, whether accidental or an insured health issue. It also does not cancel out or supersede any other coverage you have. With MPP disability your mortgage payments are covered as per the MPP details.
There are a few key features of Manulife Mortgage Protection Plan (MPP) that we would like to point out.
1. MPP has a 60 day refund option. In other words, you can select this coverage and be covered instantly; the first 30 days are free and the second 30 are covered by a money back guarantee. So if you find something superior, perhaps while meeting with a certified financial planner, you can cancel this and get your money back. Even if you go past the 60 days, it is still just a month to month policy- you are not locking into something for the same length as the mortgage term.
2. Portability- the MPP product is portable from one lender to another and property to property without having to requalify. This is very important and distinctly different than mortgage insurance from a lender. There may be a better mortgage product or rate elsewhere come renewal, or you may buy in another province where the current lender does not offer mortgages. With MPP, your insurance stays with you no matter who your mortgage lender is.
3. You can increase your premium if your mortgage amount increases, and you can also have it decreased if you have paid a significant portion of your mortgage off.
**If you would like to talk to an independent advisor about a comprehensive life insurance policy, please be sure to put MPP in place until you have new coverage set in place.
We are happy to recommend , a 30+ year trusted and experienced independent advisor who we know personally- we could not pair you with a better professional, nor a better person as we trust him completely. He is our dad!
His name is Dick Reaney- website: Dick Reaney
It is our belief that we can’t choose what coverage is best for you, but we do want our clients to be protected. The best type of coverage is coverage period!