Have more questions? Take a look at our FAQ, powered by Dominion Lending Centres for more information!
Mortgages are tricky, and we get that. Below are a few of our most frequently asked questions that we’ve answered. We totally understand that these aren’t the only questions that you’ll have, but hopefully we can provide more clarity to you when we do meet with you.
Still unsure? Contact Us today and we’ll help any questions you have!
Q: When will my coverage begin?
A: As long as your payment information is on file, your coverage begins immediately – regardless of your health or the size of your mortgage (as long as it is less than $1 million). Your initial Certificate of Insurance may include a Notice of Conditional Coverage, which means we may change your premium or some aspects of your coverage, based on your health. You must pay the first premium when due for coverage to take effect.
Please remember that the start of coverage is always based on the answers to your Medical Questions and any other health information you provide to us.
Q: Can I be covered right away?
A: Yes. Depending on your answers to the health questions and the value of your mortgage, you may be subject to further underwriting. But, as long as your payment information is on file, your coverage is effective immediately.
Q: Will I have to have a physical or any medical tests?
A: Medical underwriting is performed up-front because we want to pay claims down the road. After the medical team receives your application, they will review your answers to the medical questions and call you if more detailed health information is required. In certain cases, they may then arrange for you to have a paramedical exam, which includes the collection of blood and/or urine samples. These exams can be done at a lab, or more conveniently in your home or office – it’s totally up to you.
Q: Why is the cost for each borrower different?
A: When there is a joint application, the younger of the 2 borrowers gets a discount because it’s a joint application. If the 2 borrowers are the same age give or take a few months, this could be because they’re getting the joint discount. The cost also differs if the smoking status is different. Example: if a client is a smoker, their life premium is increased by 70%.
Q: Do I have to re-apply when I renew my mortgage?
A: No, you only have to apply once, and the initial amount of coverage is locked in at your current age. You do not have to apply again unless you extend your amortization period or take out additional mortgage funds. And you only have to apply for the increase of coverage.
Q: If I do need additional coverage, then what do I have to do?
A: You simply complete a new application for the additional coverage you need. Whatever your health situation may be at that time, your existing coverage will NOT be affected. You will continue to be covered based on the original mortgage amount.
Q: What are the exclusions and limitations?
A: No benefits are payable for any death or Total Disability that results from any of the following:
- Medical conditions resulting from sustained alcohol abuse, or from the use of any drug that is not in strict accordance with a prescription given to You by a Physician;
- Suicide or attempted suicide or self-inflicted injury, while sane or insane prior to the second anniversary of the Coverage Start Date;
- Participating in any of the following high risk activities: operating an aircraft, sky-diving, parachuting, hang gliding, scuba diving, or committing or attempting to commit or provoking a criminal offence or assault;
- Operation of a motorized vehicle or vessel when the concentration of alcohol in Your blood exceeds the legal limit;
- War, whether declared or not, or any act of war or insurrection;
- or any other cause, circumstances or condition listed as an Additional Exclusion on Your Notice Page.
In addition to the above, no benefits will be paid for any Total Disability which results from any of the following:
- A Pre-Existing Condition which results in Your Total Disability at any time before the first anniversary of the Coverage Start Date;
- Pregnancy or childbirth (with the exception of any complications thereof) abortion or miscarriage; or
- Cosmetic or elective surgery.
Q: What are the benefit limitations?
A: The total amount we will pay with respect to a Total Disability Insurance Benefit shall not exceed $10,000 per month for any one person (regardless of the number of Mortgage Protection Plan Certificates you may have).
The amount we will pay with respect to a Life Insurance Benefit shall not exceed $1,000,000 in respect of the death of any one person (regardless of the number of Mortgage Protection Plan Certificates you may have).
Q: Do we both have to get mortgage life and disability Insurance or can only one of us elect to apply for coverage?
A: Mortgage Life and disability insurance coverage is optional, you can apply for either one or both types of coverage, and you can cover one or all borrowers on the mortgage.
Q: Is the mortgage life and disability Insurance portable to a new lender or a new house if I move?
A: Yes, you can keep the mortgage life and disability insurance if you change lenders or move to another house.
Q: How do I cancel my insurance?
A: You can cancel the mortgage life and disability Insurance at any time. To cancel you just need to call the Mortgage Protection Plan toll-free number which will be included on the Certificate of Insurance.
Q. When does the mortgage life and disability Insurance coverage end?
A: Mortgage Life insurance coverage continues for as long as you have a mortgage (at the end of your original amortization period), or until you cancel or until you reach age 70, whichever comes first. Mortgage disability insurance coverage continues for as long as you have a mortgage (at the end of your original amortization period, or until you cancel or until you reach age 65, whichever comes first.
Q: Who is eligible to apply?
A: All mortgage borrowers who are Canadian residents and are at least 18 years of age but not yet 65.
Q: Will my premiums increase as I get older?
A: No. Once your mortgage is insured, we lock in your coverage at your current age. You will only pay more if you need more coverage because you sell your house or refinance and get a larger mortgage
Q: How do I pay premiums?
A: Premiums are collected on the first of each month from the account you designate. You can choose a bank account at virtually any Canadian financial institution, or any VISA or Mastercard.