Affordable Protection for your Most Valuable Investment

You are purchasing a home that you've worked so hard to obtain for your family. It's probably one of the largest financial investments you'll ever make.

If you were to die prematurely, could your family continue making the mortgage payments? Would the security of your home be taken away?

What if you become ill or suffer a serious injury? If you were unable to work as a result of your sickness or injury, could your family continue to make the mortgage payments? Would the security of your home be taken away?

If you are insured under the Group Mortgage Life and Disability Insurance Plans, underwritten by Industrial Alliance Pacific Life ("IA Pacific"), you can protect your loved ones and your investment. In the event of your death, your outstanding mortgage balance will be paid off -- allowing your family to live mortgage free. In the event of you becoming totally disabled, your insured monthly mortgage payments will continue to be made on your behalf for up to 24 months.


Am I eligible to apply for Mortgage Life and/or Disability Insurance under this Plan?

One or two people may be insured under the Group Mortgage Life and Disability Plans -- the mortgage debtor and/or the co-debtor who is/are registered on the title, provided the individual(s) is/are living in the mortgaged property. Guarantors are eligible for Mortgage Life.

To apply, you must:

  • be over 17 and under 65 years of age
  • be entering into a mortgage agreement
  • be a resident of Canada
  • have a mortgage amortization term which does not exceed 25 years; and
  • for disability insurance only, be gainfully employed for a minimum of 20 hours per week

How much Coverage is available?

The maximum amount of life insurance is $500,000 for ages 18-59 and $400,000 for ages 60-64. This means that the total of all mortgages insured for Mortgage Life through IA Pacific cannot exceed these maximums.

The maximum amount of disability insurance is $2 000 per month for ages 18-59 and $1 200 for ages 60-64. This means all monthly payments insured for disability coverage through IA Pacific cannot exceed these maximums.

There is a 60 day waiting period under the Mortgage Disability Program. This is an elimination plan which means that benefits begin to accrue on the 61st day of your disability.

How do I apply for coverage?

At the the time you apply for your mortgage you will be offered Mortgage Life and Disability Insurance If you choose to apply for one or both plans, your Mortgage Broker Professional can immediately quote and print your application from the MORTY System.

If you respond to "NO" to the health questions:

  • For mortgage life, provided your mortgage is $250,000 or less, you will automatically receive your coverage immediately or on your requested effective date.
  • For mortgage disability, you will receive your coverage automatically or on your requested effective date.

IF you responded "YES" to the health questions:

  • For mortgage life and/or mortgage disability you will be asked to complete a more detailed supplemental health questionnaire for review by IA Pacific.
  • For mortgage life, if your mortgage is $250,000 or more, you will be required to complete the supplemental health questionnaire, regardless of your responses to the health questions.
  • After a review of your supplemental Health questionnaire, if your coverage is approved, IA Pacific will contact you in writing.

How affordable are the premiums?

Life Insurance premiums are based on your mortgage amount, your smoking status and your age on the effective date of your insurance.

Disability Insurance premiums are based on your monthly mortgage payment, the waiting period you choose and your age on the effective date of your insurance.

For your convenience, your insurance premium is deducted monthly from your bank account on any day of the month you choose. You won't have to worry about missing a payment.

Your premiums will remain level unless you change your mortgage.

When does coverage terminate?

As long as premiums continue to be paid and the group policy remains in place, coverage will not terminate until the earliest of the following dates.

  • the mortgage balance is paid in full; or
  • the amortization term or principal amount payable is changed; or
  • IA Pacific has received written notice from all applicable insureds, requesting termination; or
  • the finance source has demanded repayment of the mortgage balance; or
  • upon payment of the life insurance benefit; or
  • one or both insureds reach age 75 (for life); age 70 (for disability); or
  • the right, title or interest in the mortgaged property is sold, conveyed, transferred or otherwise disposed of; or
  • 25 years after the coverage becomes effective.

Are there any limitations or exclusions?

The only life exclusion is suicide within 2 years of the effective date of your life insurance.

Certain limitations and exclusions apply to disability insurance. For example, there are some pre-existing conditions that may not be covered. Please refer to your certificate for details.