CAA Protect – Better Mortgage Insurance

Covering life’s biggest investment

Canada has one of the highest proportions of homeowners versus renters in the world – as high as 67%, according to some statisticians. It’s safe to assume that Canadians would choose to protect their largest investment. Historically, they have had a limited number of options, the most common of which is mortgage insurance through the bank or mortgage lender.

It’s always been this way

Traditional mortgage insurance covers the cost of paying off the remainder of the mortgage in the event that something happens to the mortgage holder.

Your lender’s mortgage insurance premiums may increase as you age, while the amount owing on your mortgage goes down over time. So, while you increasingly pay more, your mortgage payout goes down.

Plus, the lender/bank traditionally makes themselves the beneficiary of your policy in order to be sure they recover their investment. Mortgage insurance protects the lender’s interests, not the homeowner’s.

Under this scenario, any payout would be to simply pay off the mortgage to the lender with nothing left for surviving family members to take care of other debts, funeral costs, or continuing living expenses.

A Better Option for today’s homeowners

CAA Protect has a new and improved solution to offer. It’s life insurance for your mortgage called Better Mortgage Insurance.

How is “life insurance for your mortgage” better than “mortgage insurance”?

Because it’s a life insurance policy where the premiums and the claim amount remain constant throughout its term.

It’s also underwritten at the time of the application. Mortgage insurance is underwritten at the time of the claim.

Better Mortgage Insurance does not only insure your mortgage; it also insures the mortgage holder’s life. It’s similar to a Term Life policy, where you take out a policy and your payments remain the same over an agreed period of time.

Let’s say your home has $200,000 remaining on the mortgage, and you have a Better Mortgage Insurance policy valued at $500,000. If something happens to you, the beneficiary YOU CHOOSE receives the payout of $500,000 to pay off the house, any debts remaining, funeral expenses, and continuing living expenses.

The bank gets their investment paid off, while your beneficiary is left with the ability to stay in the home and live out the remainder of their life if they choose. It’s a WIN-WIN situation.

Expressed another way

There are three main benefits to selecting the Better Mortgage Insurance policy.

First, it benefits you and your family, as well as the bank/lender. You can choose whoever you want to be the beneficiary because it’s “life insurance for your mortgage”.

What if you move or change lenders?

The second major benefit is that your policy moves with you if you change lenders or move. With mortgage insurance, when you change lenders, you have to re-apply, and all those premiums you’ve paid out remain with your previous lender. You’ll be starting over, and since you’re older now, your premiums will likely be higher.

What if there’s a separation or divorce?

In the event of a separation or divorce, Better Mortgage Insurance offers a unique option. Both you and your former partner can change the policy into two individual policies under which you’re each entitled to 100% of the sum insured. Once again, the policy holders win.

Let’s not forget the third benefit

Your Better Mortgage Insurance policy costs about 45% less than bank/lender mortgage insurance.

You could pay as little as $25.45* a month with Better Mortgage Insurance, compared to $49 a month with lender mortgage insurance. That saves you … yes, up to 45% over the traditional lender’s insurance.

Next steps to take

Protecting your home and family is top of mind for today’s responsible homeowner, and that includes making sure that your family is not left with enormous debt if anything were to happen to you.

Discover how you can benefit from a Better Mortgage Insurance policy. Visit CAA Protect today. Or call a CAA Protect agent at 1-800-709-5809 for details.

*Legal: Based on a plan for a female, age 32, non-smoker, $350,000 coverage with a 25-year term

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