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How important is it to choose your
mortgage insurance
carefully?
Your home...
• A valuable asset
• Your first major financial
commitment
To protect it...
• Does your current mortgage insurance offer
you such regular coverages as:
– protection in case of death (life insurance)
– protection in case of disability
– protection in case of critical illness
Right now...
• Does your current insurance offer you the
following advantages:
– no increase in your premium?
– possibility to designate the beneficiary of your
choice?
– possibility to use the insurance proceeds
(following a death) as you wish?
Right now...
• Does your disability coverage offer you:
– the payment of your benefits regardless of the
duration of your disability?
– the full payment of your monthly mortgage
instalment?
– an insurance premium that does not increase
with the interest rates?
Are you sure...
… that you are fully covered by your current
insurance?
Or simply,
… that you are even INSURED?
Uncertainty...
• Is your financial institution able to certify
that you are insured without even having
checked your state of health?
Most financial institutions check your state
of health... but only when you make a
claim.
The consequences...
• Some people are declined a benefit just
when they need it most!
Could this happen to you?
A product that offers
reassuring
protection
The advantages of the
Home Protection Plan
•
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•
Level and guaranteed premiums
Contract independent of the loan
Protection against interest rate increases
Choice of beneficiary
Medical questions at issue to make sure you are
covered
• Complete coverage: life, critical illness, disability
and additional benefits
The HPP… and other financial
institutions
• Now let’s take a look at the protection offered by
the Home Protection Plan as compared to other
financial institutions
LIFE INSURANCE
The amount paid in case of death will be:
The policyowner is:
At death, the benefit is paid to:
When the loan is renewed, if you change
lenders, the insurance usually continues.
The insurance is convertable to regular life
insurance.
The insurance premium is not affected by
interest rate increases in any way.
HPP
OTHERS
100%
the beneficiary
of your choice
TRUE
Generally
100%
Lending
institution
the lending
institution
FALSE
YES
NO
TRUE
TRUE
YOU
Product structure
LIFE INSURANCE
100%
DISABILITY
50%
Riders
CRITICAL ILLNESS
ADDITIONAL BENEFITS
(MGI, WPDis, AD, AD&D, AF)
Life insurance
Protection:
• On an individual or joint basis
• Always 100% of the loan balance
• $10,000 to $1,000,000
– special quotes for > 1 million
Term:
• maximum period of 30 years
Life insurance
Premiums
• Based on you as an individual and not a pool of
clients
– age, sex, tobacco use and mortgage balance
• Premium guaranteed for the entire term of the
contract and is not affected by interest rate hikes
• Reducing premiums with lump sum payments of
$5,000 per year
Life insurance
Conversion privilege:
• permanent life insurance
• without evidence of insurability
• before age 65
• for an amount equal to the mortgage balance
when the request is made
Life insurance
Extension:
In addition to the conversion privilege, your
HPP plan extends the insurance coverage for a
period of 45 additional days following the
death of the spouse, for joint coverage, at no
extra cost!
Life insurance
Double payment:
For a joint insurance coverage,
a double payment will be paid if
one spouse dies within 45 days of
another spouse!
Life insurance
Beneficiary:
You can name a beneficiary other than the lender.
Advantages:
– control over the benefit
– take advantage of a favourable interest rate situation
at death
Product structure
LIFE INSURANCE
100%
DISABILITY
50%
Riders
CRITICAL ILLNESS
ADDITIONAL BENEFITS
(MGI, WPDis, AD, AD&d, AF)
Disability… in statistics
•
•
1 person in 3 will suffer from a more or less
extended disability before the end of their
loan amortization period
The average duration of a disability that
lasts more than 90 days is 2.9 years
Source: CIDA 85 Disability Table; CSO 80 Mortality Table; CIAS 86-92 Mortality Table
FOR SALE
80%
of foreclosed
mortgage loans are
related to the
borrower’s health!
DISABILITY INSURANCE
If you become disabled, the amount paid
by the Home Protection Plan will be:
When the loan is renewed, interest rate
hikes will not increase the disability
insurance premium.
A disability is:
HPP
OTHERS
50% or 100%,
according to the
chosen option
TRUE
According to
the chosen
option
FALSE
The inability to The inability to
work at one's work at one's
own job for 24
own job,
months
generally for
12 months
Disability insurance
•
At each insured’s choice
•
Age at issue: 18 to 54
•
Two levels of coverage:
–
50%; 100%
both insureds can opt for different coverage
•
Waiver of premium included
Disability insurance
•
Two benefit duration choices:
–
2 years
– duration of the loan (before the insured
reaches age 65)
•
•
Disability must occur before age 60
Waiting period:
–
3 months (retroactive to 1 month)
Disability insurance
Definition of disability:
– First 24 months: regular occupation
– afterward: any occupation for which you are
reasonably qualified
•
Relapses are covered
–
with no waiting period for the same cause,
within 3 months
Product structure
LIFE INSURANCE
100%
DISABILITY
50%
Riders
CRITICAL ILLNESS
ADDITIONAL BENEFITS
(MGI, WPDis, AD, AD&D, AF)
Critical illness
•
The critical illness option provides
for the payment of a lump-sum
amount, equal to 100% of the
mortgage balance, following the
diagnosis of the following critical
illnesses:
Covered critical illnesses
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Cancer
Stroke
Heart attack
Coronary artery bypass surgery
Kidney failure
Major organ transplant
Multiple sclerosis
Coma
Paralysis
Dismemberment
Blindness
Deafness
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Muteness (loss of speech)
Major burns
Benign brain tumour
Occupational injury - HIV
Motor neuron disease
Alzheimer’s disease
Parkinson’s disease
Cystic fibrosis
Loss of independent existence
Aortic surgery
Heart valve replacement
Critical illness
The lump-sum payment can be used as you
wish:
–
–
–
–
–
pay off the mortgage balance;
pay medical fees to receive treatment abroad;
pay for home nursing care;
allow your spouse to go on unpaid leave;
etc.
Critical illness
•
Level and guaranteed premiums
• Issue age: 18 to 64
• Face amount:
–
•
100% of the loan balance
Duration of the protection:
–
duration of the loan amortization period (max. 30 years)
– to age 75 if before
Critical illness
Joint insurance:
• benefit payable on the first diagnosis of a
critical illness (Terminate the contract)
• in the case of simultaneous diagnosis of
both insureds: double benefit
Product structure
LIFE INSURANCE
100%
DISABILITY
50%
Riders
CRITICAL ILLNESS
ADDITIONAL BENEFITS
(MGI, WPDis, AD, AD&D, AF)
Additional benefits
For a few $, you can add the following additional
benefits:
– Guarantee your current state of health as a benchmark
should you wish to purchase additional insurance later
with no medical questions.
– Stop the payment of your premiums during a period of
disability.
– Double the payment of the face amount in the event of
accidental death or accidental death and dismemberment.
– Obtain an additional benefit in case of accidental fracture.
The only REAL mortgage
insurance!