What is Mortgage Life Insurance?

Two common types of mortgage-related insurance products are mortgage loan and mortgage life insurance. Both types of policies offer protection when  a homeowner is not able to make mortgage payments, but differ in terms of who they protect.

Mortgage loan insurance, also called private mortgage insurance, offers protection for mortgage lenders in case the borrower defaults on their mortgage. Lenders usually require mortgage loan insurance when a homeowner purchases a house with a low down payment (5%-20%). The bank usually passes the cost of this premium on to the home buyer by adding it into their mortgage payments.

Mortgage life insurance protects home buyers and their families in case they pass away or fall ill before they pay their mortgage off. A mortgage life policy covers the outstanding balance of the mortgage if the policyholder dies, and may also cover payments in case of disability or serious illness.

In general, mortgage loan insurance is of interest to homeowners who want to purchase a home but can’t make a 20% down payment, while mortgage life insurance may be useful to any homeowner who wants to protect their legacy and their family’s financial stability.

20/20 does not offer coverage for job loss.  This means, your mortgage coverage will not be paid if you lose your job.

20/20 Mortgage Life Insurance covers whomever you choose to be your beneficiary. For most people, this would be their children, their partners or close family members. With 20/20, the beneficiary of your policy can truly be anybody you'd like to protect.

20/20's Mortgage Protection covers the balance of your mortgage. Your beneficiary has complete control of how those funds are used and is not obligated to pay off the mortgage balance. This is how 20/20's Mortgage Protection differs from that offered by banks. 

Your protection is independent of your lender. With bank protection, if you switch lenders, you lose your protection and must re-qualify with your new lender at a higher premium (because now, you're older). With 20/20, your mortgage life insurance policy is completely portable.  

Most people buy mortgage insurance (also known as creditor insurance) at the same time they get their mortgage, without ever having time to compare prices or features. Many people don't really understand how much they are paying because their insurance premiums are hidden in their monthly mortgage costs. As a result, they end up paying much, much more than they have to.

That’s why most people will save 20% or more per year just by switching to 20/20. The exact amount you can save will depend on your age, the amount of your mortgage, where you live, and when you purchase your home. Here are 3 examples:

1. A 42-year-old single applicant from Kingston with creditor life insurance on a $350,000 mortgage could save up to 28%, or $386 a year by switching to 20/20. That’s savings of $9,650 over the course of a 25-year mortgage!
2. A 31-year-old couple from Winnipeg with creditor life and disability coverage on a $500,000 mortgage could save up to 23%, or $585 a year by switching to 20/20. Over the course of a 25-year mortgage, they will save $14,625! 
3. A 37-year-old couple living in Toronto with creditor life and critical illness coverage on a $300,000 mortgage could save up to 29% or $846 a year by switching to 20/20. That’s savings of $21,150 over the course of a 25-year mortgage!

There are 3 basic forms of creditor insurance that your bank can sell you with your mortgage:

1. Mortgage Insurance pays off the full amount of your outstanding mortgage in the event of a death. 
2. Critical Illness Insurance pays off the full amount of your outstanding mortgage in the event of a critical illness such as a stroke, cancer or heart attack.
3. Mortgage Disability Insurance pays your monthly mortgage payments in the event you suffer a serious disability which impacts your ability to work.

20/20 Mortgage Life Insurance covers the same life, critical illness and disability risks as creditor insurance, but it is an individual life insurance policy owned and controlled by you, not your bank.   

You can apply for 20/20 online or speak to one of our licensed mortgage life insurance specialists by calling 1-844-974-2020.

20/20 Mortgage Life Insurance is currently offered everywhere in Canada except for Quebec and Nunavut.

20/20 policies are underwritten and backed by Assumption Mutual Life Insurance Company (“Assumption Life”), which has been providing a broad range of insurance and investment products to Canadians for over 100 years. As of December 31st, 2015, Assumption Life has assets under management of $1.6 billion and a solvency ratio of 242%, well above the 150% minimum requirement set by Canada's Office of the Superintendent of Financial Institutions.

A.M. Best, one of the oldest agencies specializing in the independent evaluation of the financial health and creditworthiness of insurance and reinsurance companies worldwide, recently awarded Assumption Life an A- (excellent) rating for the 17th consecutive year.

Switching from your existing plan with the bank is free and straightforward. Simply let us know if you wish to cancel your bank-owned plan. When we send you the confirmation of coverage for your personal records, we will also provide you with a cancellation letter to sign and send to your bank

Absolutely! We have many mortgage protection options available for you. For details, please call 1-844-974-2020​ to talk to one of our licensed insurance agents.

20/20 can offer these savings because we are NOT a big bank. We don’t have the costs of maintaining thousands of branches across Canada, and our enrolment and administration platform is newly built on modern web-based technology.  This is protection you can count on. 20/20 policies are underwritten and backed by the Assumption Mutual Life Insurance company, a strong, well-capitalized company that has been providing dependable and affordable insurance coverage to Canadians for more than 100 years.

If you have a mortgage with a balance of under $600,000 you are eligible to purchase 20/20 by answering 5-6 basic health questions.  No further medical underwriting or exams are required. For amounts over $600,000 we have many other insurance options available for you. Contact us for more details!

Yes. After your policy is issued, you can change your beneficiary at any time simply by contacting our call centre at 1-844-974-2020.