Need help getting started with mortgage protection? Talk to a LifeGuard advisor to discuss all your insurance options.
Mortgage Protection Solutions
You deserve more mortgage protection options for you and your family.
Our comprehensive life and critical illness insurance can cover you for
more than your mortgage.
What is mortgage protection solutions?
LifeGuard’s mortgage protection solutions is a combination of two products: term life insurance and critical illness insurance.
The term life insurance component of mortgage protection solutions offers your family or beneficiaries a certain amount of money (also called the death benefit) if you were to die within a set time-period. Your beneficiaries can then use this money for any purpose, including paying down or paying off a mortgage.
How long are you covered?
With term life insurance , you’re covered for a set period, such as 10, 15, 20, 25 or 30 years. You get to select the time-period for your policy.
Is it low cost?
The premiums (monthly or annual fees) for term life insurance are usually low until the end of the term.
The critical illness insurance component of mortgage protection solutions gives you a lump-sum payment if you’re diagnosed with a covered illness (e.g. cancer, heart attack, etc.). You can then use this money for any purpose, including paying the mortgage.
Overall, with mortgage protection solutions, you get to:
- Keep the same amount of coverage even as you pay off your mortgage,
- Keep your coverage even if you move or change lenders, and
- Select a beneficiary to receive the death benefit.
Compared to mortgage protection solutions from LifeGuard, mortgage insurance works differently:
Mortgage insurance in Canada
Mortgage insurance through a bank or lender, is not the same as mortgage protection solutions.
Mortgage insurance can be used only to pay off some or all of the remaining amount owed on your mortgage in the event of your death. But the money won’t go to any beneficiary. Instead, it will go directly to your bank or mortgage lender.
Mortgage insurance pays all or part of your mortgage debt, but it doesn’t leave any money for your family. And your family’s financial needs may go beyond just a mortgage. They may have other expenses to cover as well. That’s why you may want to consider mortgage protection solutions instead.
The difference between mortgage protection solutions (with term life insurance and CII) and mortgage insurance
Most mortgage lenders will give you the option to apply for mortgage insurance directly through them. But before you finalize your mortgage, think about how different their benefits are from ours.
| Features | LifeGuard’s mortgage protection solutions | Mortgage insurance through a bank or other lender |
|---|---|---|
| Coverage if you die | Yes. | Yes. |
| Coverage if you get sick | Yes. | Yes. |
| Coverage amount stays the same as you pay off your mortgage | Yes. | No. |
| You decide who gets the death benefit | Yes. | No. |
| Your premiums are guaranteed as set out in your policy | Yes. | No. |
| Optional benefits to customize your insurance coverage | Yes. | No. |
| Change mortgage lenders without losing your insurance | Yes. | No. |
| Change mortgage lenders without reapplying for insurance | Yes. | No. |
Mortgage protection solutions vs mortgage insurance: Which product do you need?
Mortgage protection solutions has several advantages over traditional mortgage insurance through lenders, including the following:
- Your coverage amount stays the same as you pay down or if you pay off your mortgage.
- You can change lenders without losing coverage.
- You can choose your beneficiaries.
- Your premiums (monthly or annual fees) are typically guaranteed, meaning they’re set and most likely won’t change.
- You can choose the period of time you need coverage.
- You can choose the amount of insurance coverage you need.
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Frequently asked questions
What is the difference between mortgage protection and life insurance?
While both protect your family financially, mortgage protection and life insurance serve different purposes. With mortgage insurance through a lender, your coverage decreases as you pay down your mortgage, and the payout goes directly to your lender. This means your family won’t have control over the funds. A life insurance policy, on the other hand, maintains the same coverage amount throughout your term. Your beneficiaries receive the full tax-free payout and can use it for any purpose.
Is mortgage protection worth it?
As with all insurance products, determining its worth really depends on your specific circumstances, needs and goals. For example, mortgage protection solutions through LifeGuard offers valuable benefits beyond basic coverage in the event of your premature death. Our comprehensive solution also includes critical illness insurance, helping to ensure that your mortgage payments are secure even if you’re diagnosed with a covered critical illness.
How much does mortgage protection cost?
Your cost will depend on the policy and amount you choose, based on your age, assigned sex at birth, and health factors.
Is mortgage protection mandatory in Canada?
No, mortgage protection solutions isn’t mandatory in Canada. This type of coverage differs from mortgage default insurance, which is required by the Canada Mortgage and Housing Corporation (CMHC) when your down payment is less than 20% of the purchase price.
While you’re not required or obligated to buy mortgage protection solutions, there are compelling reasons why Canadians may consider purchasing this product, namely:
- Life insurance coverage. If you die, your beneficiaries receive a tax-free lump-sum payment, which they can use for any purpose, including making mortgage payments.
- Critical illness insurance coverage. You’ll get a lump-sum payment if you’re diagnosed with a covered illness. You can use this money for any purpose.