Employer disability plans usually only cover a percentage of your income leaving you to figure out how to cover the rest of your day-to-day costs, including your mortgage payments. Having the added security of mortgage life and disability insurance means that neither your family or estate will need to use funds from any other insurance plan to pay your mortgage. Secure Start Life and Disability Insurance can help ensure one of your largest assets — your home — is protected, regardless of any additional coverage you may have.

If you answered “No” to the health questions on the Secure Start Life and Disability Insurance application and your mortgage balance is $500,000 or less, approval of this insurance is automatic. If you answered “Yes” to a health question or if the mortgage balance exceeds $500,000, you will be required to undergo a confidential medical interview. The insurer may request additional information or tests in order to get a complete picture of your medical health. Please note that coverage only becomes effective upon written approval from The Canada Life Assurance Company.

For most, coverage begins as soon as you begin paying your premiums. Your policy comes into effect on the later of these dates: when you apply for coverage, the date the insurer approves your coverage or the date funds are advanced.

When you renew your mortgage with RMG, your policy will be extended automatically and there are no additional forms to complete.

The maximum coverage is $750,000.00 for all insured mortgages with RMG.

If you move or wish to refinance your mortgage, your outstanding coverage protection will transfer over automatically. Partial insurance coverage will be based on the unpaid balance of your existing mortgage and you do not need to re-apply. The new benefit amount is calculated by taking the transferred coverage amount, divided by the total balance of your new refinanced mortgage. This percentage will be applied to the outstanding balance at time of death. If you wish to top up the coverage, a new application must be completed for the additional amount. If your health condition is such that your application for insurance is declined, the partial coverage as outlined above will still be granted.

Let’s assume you purchased Disability Insurance for your mortgage. Your monthly principal and interest mortgage payments are $1,500 per month and your property taxes are $200 per month (as long as property taxes are collected by RMG). In the event of a claim, you will be covered for $1,700 per month, if you applied for full coverage of your total payments.

The maximum coverage is $4,000 in monthly mortgage payments and taxes (as long as taxes are collected by RMG) and the maximum coverage is 24 months of disability benefits, consecutively or in aggregate per disability.