Industrial Alliance Pacific in conjunction with Fairlie Insurance is proud to announce our new Blend and Extend Plan that will revolutionize the way mortgage insurance can be marketed to your clients.

We have listened to your concerns; you can now offer your clients the most flexible mortgage insurance on the market today.

If your client wishes to increase the amount of insurance, we will blend the old rate forward with your client only having to make up the additional amount of the new mortgage at the new rate.

Our mortgage insurance is portable from lender to lender and property to property. If your client is a nonsmoker between the ages of 35 and 65 (if it's a joint policy), our rates will beat most Banks and Trust Companies. Our disability insurance is simply the least expensive on the market today. i.e. 40 year old with a $1,000/month to make, we will cover him for up to 2 years, potentially $2,400 of disability income(on a 60 day wait period), the premium is only $24.00/month.

Question:

    If a client had a mortgage of $100,000 at the end of a 5-year term they had an $80,000 balance and an $80,000 insurance certificate (declining balance). They renegotiated their mortgage for $100,000 on 25-year amortization. Could they carry forward their original insurance balance knowing that they are only covered for $80,000 (declining balance) over the next 20 years without medical evidence or a new application?

Answer:

    Yes they can. The original certificate stays in-force for the remainder of the original term. The remaining balance of $80,000 is expected to decline at a rate calculated by original amortization term and original interest rate. Customer must send in a written request to transfer the insurance over to their new mortgage loan. They cannot add anyone new onto the certificate but can take someone off.

Question:

    What happens if the client takes a new mortgage and wants to only keep the existing balance and not increase can they keep the original balance and do they have to prove new medical evidence?

Answer:

    Three possible scenarios:
    1. Customer takes out a new mortgage for the amount still outstanding on the old mortgage and for the remainder of the amortization term as under the old mortgage. Here there would be no change to our liability. We require only a letter from the Insured(s) requesting transfer to new mortgage and notification as to who the new finance source is. All other terms and conditions remain the same.
    2. Customer's original mortgage was for $100,000 and has been paid down to $80,000. They now get a new mortgage for $100,000 and want insurance for the full $100,000. A new application with medical evidence (if applicable) is required as our liability is gone back up and probably for an extended term.
    3. Customer's original mortgage was for $100,000 over 25 years and has been paid down to $80,000 after 5 years. They now get a new mortgage for $80,000 but have gone back up to a 25-year amortization term. Again a new application with medical evidence (if applicable) is required as our liability is extended from 20 years to 25 years.

Question:

    What happens if a client cannot find their original certificate and wants to blend and extend is there a lost certificate form they can complete?

Answer:

    Industrial Alliance Pacific will retrieve the original application from offsite storage and will proceed with the information we have on file. This retrieval may result in a one or two day delay in processing the application.

Question:

    Is full medical evidence required on the new blend and extend cert?

Answer:

    Yes, medical evidence would be required based upon the total amount being insured. It would be treated exactly as a new application only we are giving them a deal on the premiums. If Insured is declined under the new application, prior coverage recognition kicks in: they have the option of keeping their old insurance in place OR cancel it.

Question:

    Will this new program be retroactive and include all certificates in force?

Answer:

    Yes, this will apply, upon refinancing, to any certificate that is currently active.

Question:

    How will disability be effected will the clients be able to carry forward their disability on a refinance and can we introduce a blend and extend if they have a higher mortgage payment?

Answer:

    A couple of issues here:
    1. A client is refinancing his/her mortgage and currently has an active claim. He/she can only transfer the existing coverage to the refinanced loan. No increase in benefit amounts or insurance term will be considered as customer is not eligible for any increase in coverage.
    2. If a client had disability coverage before, blended rate on the disability applies only if they apply for the same type of coverage. Blended rates will not apply if they switch from 90 day Elimination to 60 day Elimination, or vice versa.

If you have any further questions, please don't hesitate to call or email us.