Question 1

I’m young – do I really need insurance?

Accepted Answer

This is a great time to enrol in insurance, because you can lock in a low premium now for the entire life of the mortgage loan. Unfortunately, accidents, illnesses and unexpected life events can happen at any age and they can impact your finances significantly.

Question 2

I already have term insurance, why do I need mortgage protection insurance?

Accepted Answer

Term life insurance is different than mortgage protection insurance, and it may not provide the protection you and your family require in the same situations. With mortgage protection insurance, you have the peace of mind that your mortgage payments are taken care fully or partially of so that you or your loved ones can focus on things that matter.

Question 3

Why do I need mortgage protection insurance when I already have insurance from my employer?

Accepted Answer

Most workplace insurance plans may not cover 100% of your gross salary – and the coverage ends when you leave your employer. Our protection plan isn’t tied to your employment and can work alongside your other policies to ensure you have great, well-rounded coverage.

Question 4

What if I have enough savings to manage in an emergency?

Accepted Answer

Even if you have an emergency fund, you may not want to use it up to maintain your lifestyle. Your family may not be able to maintain their lifestyle on a reduced income with additional treatment costs. In many cases, it makes good sense to apply for mortgage protection insurance now, before anything unexpected happens.

Question 5

How do I get approved?

Accepted Answer

Most of the required information will come through your mortgage loan approval process. You’ll have to answer three health questions, depending on your coverage selection, if your mortgage balance is over $50,000. If you answer “NO” to the relevant Health Status Question(s), your coverage is approved without any more steps. If you answer “YES” to the Health Status Question(s), we’ll need to send your application to Canadian Premier for medical underwriting.

Question 6

How is my insurance premium calculated?

Accepted Answer

Your monthly premium rate is based on your age when you apply for your insurance, and it won’t change as you age. There are single and multi-rates per coverage type. Your premium, plus provincial sales tax (if applicable) is added to your loan on the payment due date. The premium rate calculation for Balance Protection is calculated for every $1,000 of coverage. The premium rate calculation for Payment Protection is calculated for every $100 of coverage. There are separate premium rate tables for Balance Protection and Payment Protection. You can find more details in the Certificate of Insurance or use our get a quote tool.

Question 7

What happens if I refinance or sell my home?

Accepted Answer

If you sell your home to buy another one, your insurance will end on the date your mortgage is refinanced. If you want your new mortgage to be insured under the same plan, you’ll need to complete a new insurance application. Sometimes a new application could be declined because of a health condition or if you’re over the eligible age to apply (but under the termination age). In these cases, you may be eligible for recognition of prior coverage (ROPC), which provides you with the same amount of coverage you had under the previous mortgage. Your Certificate of Insurance will have more information on how to proceed in this situation.

Question 8

What are the limitations and exclusions?

Accepted Answer

For a full list of exclusions and limitations, please see the “what are the important details of the coverage (including limitations and exclusions)?” and “what will Canadian Premier pay if my claim is approved, for each type of coverage?” sections of the Certificate of Insurance.

Question 9

Can I cancel my coverage if it isn’t right for me?

Accepted Answer

Absolutely! Coverage is optional and you can cancel or modify your insurance at any time. If you cancel within 30 days of the coverage start date, you’ll get a full refund of any premium you’ve paid – it’s as if the coverage never took effect. Quebec residents can use the Notice of Rescission, which you would have received when you enrolled. Would you like to cancel your insurance coverage? Contact 1-877-225-5266 or talk to your branch representative.

Question 10

Who do I contact about a concern with my current coverage?

Accepted Answer

For complaints regarding underwriting decisions or insurance claims please call the Canadian Premier Creditor Team at 1-877-271-8713 and reference the BMO Protection Plan for Mortgages and Lines of Credit. Full details of BMO’s dispute resolution process are outlined in the brochure titled: We’re here to help – Resolving Customer Complaints.