A mortgage takes years to repay in full. If you currently have a mortgage, odds are you’ll be carrying it for years to come.
But what would happen if you suddenly passed away while the mortgage payments are still due? Or what if you suffer a serious illness or injury that prevents you from working and collecting a paycheck?
What would happen to you and your family? Would you have the financial means to continue making the mortgage payments on time? Or will you be put in a position to potentially lose your family home?
With a mortgage insurance policy in place, all or part of your financial obligations could be repaid in the event of your passing. And even if you suffer an injury or are diagnosed with an illness that renders you unable to work, a mortgage insurance policy can help cover the costs of your mortgage so you and your family can continue maintaining your lifestyle.
There are many insurance companies in Canada that offer mortgage insurance, including Industrial Alliance (iA) Financial Group. The firm has been around since 1892 and has amassed a large roster of clients, providing them with a host of insurance and financial products and services.
Industrial Alliance offers several options to choose from to customize your mortgage insurance policy according to your needs and budget.
Mortgage Insurance At Industrial Alliance
Pick-A-Term
- Covers all your loans in the event of death
- Terms range from 10 to 40 years
- Premiums won’t increase
- Guaranteed renewal
- Can be converted into permanent life insurance
- Coverage also applies to tenants
Are you feeling financial stress? See how you can cope with it.
Universal Loan Insurance
- Covers your debts in the event of disability
- Terms include 2 years, 5 years, or up to age 65
- Coverage also applies to tenants
- Guaranteed renewal up to age 65
Industrial Alliance Pick-A-Term Vs Universal Loan Insurance Overview
| Pick-A-Term | Universal Loan Insurance | |
| Coverage Term | 10 to 40 years | 2 years, 5 years or up to age 65 |
| Guaranteed renewal | Yes | Up to age 65 |
| Option to Convert to Permanent Life Insurance | Yes | N/A |
How Do You Get Mortgage Insurance With Industrial Alliance?
To apply for a mortgage insurance policy with Industrial Alliance, you have 2 options:
Find An Advisor
The Industrial Alliance website features a portal to help you find a licensed agent in your area. All you need to do is enter your postal code, and a list of agents in your area will populate for you to choose from.
See the difference between an insurance agent and an insurance broker.
By Telephone
Speak directly to an Industrial Alliance agent by calling 1-844-442-4636 to get started with the application process.
Why Work With An Industrial Alliance Advisor?
Buying a mortgage insurance policy from an insurance company like Industrial Alliance rather than a bank can afford you the following benefits:
You Own The Contract
If you purchase mortgage insurance through your bank, they own the contract. But if you buy your policy from an independent insurance company, you own the contract.
You Choose Your Beneficiaries
If the bank owns the contract for your policy, they become the beneficiary. But a mortgage insurance policy purchased from an insurance provider allows you to choose the beneficiaries, who will then have the freedom to either pay back the loan, pay off their debts, or use the benefit in any other way they choose.
Fixed Coverage
Coverage amounts with your mortgage insurance policy will remain fixed. So, if you have a $300,000 mortgage and purchase $300,000 in mortgage insurance, that amount will remain the same year after year. When purchased through the bank, the amount of coverage will decrease as the remaining balance of the mortgage decreases.
Your Mortgage Insurance Policy Can Be Converted
With an insurance company, you’ll have the freedom to convert your mortgage insurance policy to a permanent life insurance policy if you so choose. Your premium won’t increase and there will be no need for a medical exam. Your life insurance policy will remain in effect until you pass away.
Develop A Customized Plan
An Industrial Alliance advisor will help you come up with a solid plan tailored to your needs and budget.
Should You Get Mortgage Life Insurance Or Term Or Permanent Life Insurance?
A life insurance policy will pay out a lump sum benefit to your beneficiaries in the event of your death. This benefit can be used for any number of purposes, including paying off the remaining balance of a mortgage. So, should you just get a life insurance policy instead?
The following chart will help you differentiate between mortgage insurance and a life insurance policy to help you decide which one may be better suited for you.
| Mortgage Insurance | Term or Life Insurance | |
| Death Benefit | -Death benefit amount is equal to the remaining mortgage balance if purchased through the bank -Death benefit decreases as you make mortgage payments if purchased through the bank -Death benefit is used to repay the mortgage | -Choose coverage amount -Death benefit remains fixed -Beneficiary can use the money for any purpose |
| Beneficiaries | -Mortgage lender is the beneficiary if purchased through the bank | -You name the beneficiary -Death benefit is paid to your named beneficiary |
| Premiums | -Premiums remain the same -Premiums are based on your age & the mortgage amount when you apply | -Premiums may be fixed or increase with age -Premiums are based on your age, gender, medical history, & coverage amount when you apply |
Whichever route you choose to take, Industrial Alliance has a mortgage insurance or life insurance policy for you.
Final Thoughts
If your income is heavily relied upon in your household, you may want to take steps to protect your loved ones in the event of an untimely passing, or a medical condition that forces you to stop working. And if you don’t already have a life insurance policy in place, a mortgage insurance policy may be the next best thing. With a mortgage insurance plan from Industrial Alliance, you can make sure your family isn’t stuck scrambling to continue making mortgage payments if you’re no longer able to contribute financially.
