CHOICE, ADVICE
AND TRANSPARENCY

ADVICES

Discover different articles about the insurance solutions offered by our insurance broker’s company.

What is mortgage disability insurance? 

L’assurance hypothécaire pour invalidité, c’est quoi ?

While mortgage life insurance allows yourbeneficiaries to pay the balance of your mortgage when you die, mortgage disability insurance allows you to continue your mortgage payments without having to use your savings if you become disabled. To learn more about this type of mortgage insurance, consult our easy-to-understand guide. It will help you make an informed choice for your mortgage solution.

For more information on other types of personal insurance to protect your mortgage, check out our other article, “Five things you need to know about mortgage insurance”.

In this article:

What is mortgage disability insurance?

Mortgage disability insurance covers your mortgage payments if you are unable to generate income as a result of an accident, injury or illness. Since your condition will prevent you from working and receiving a salary, this type of insurance can be useful as it will cover the minimum payment of your debt balances.

Be careful, as mortgage disability insurance is different from disability insurance! For more information on disability insurance, see our article, “Disability Insurance Briefly Explained”.

Disability insurance covers any diagnosis or illness that would prevent you from working. It includes, but is not limited to, the following:

  • Accident
  • Critical illness, including cancer
  • Injury
  • Other illnesses

Your contract may have exclusions. For more information, get help from your financial security advisor.

Do I need mortgage disability insurance?

Not all Canadians need mortgage disability insurance. However, if you have a mortgage and dependents (usually a spouse, children or elderly parents) who rely on you for financial support, or if you don’t have the savings to cover your expenses during your possible disability, you probably need this insurance.

What is the duration of the coverage period?

To decide on the duration of your mortgage disability insurance, estimate how long you would need a disability benefit. Our calculator also suggests a term for your insurance coverage.

A tip: To ensure that you are always well covered, review your insurance needs regularly as they may change depending on your family and work circumstances.

If you become disabled, your insurance will reimburse you for your monthly mortgage payment. Depending on the contract you have signed, this amount will be paid to you for a period of two to five years, or up to age 65.

Still have questions about the mortgage loan insurance offered by Matcha Insurance? Our financial security advisors are available to answer any questions you may have and to reassure you.

Contact us now by calling 1 844 532-3228 or Book an Appointment.

The typical cost of mortgage disability insurance

Several factors influence the cost of mortgage disability insurance:

  • The monthly insurance amount you choose
  • Your monthly mortgage payments
  • Your age
  • The insurer, because each insurer has different costs

For example, here is a table that uses three different profiles of insureds with prices from different insurers:

Profiles: Men

Profile:

SSQ

Empire Life

Assumption Life

Person 1, 29, non-smoker, professional, $300,000 mortgage, $3,000 mortgage disability insurance

T25 $300,000 fixed life only = $26.73

With debt disability payment of $3,000 = $74.49

T25 $300,000 fixed life only = $27.45

With debt disability payment of $3,000 = $75.43

T25 $300,000 fixed life only = $27.54

With debt disability payment of $3,000 = $70.74

Persons 2 and 3, 55, non-smoking, office workers
$150,000 mortgage, $2,000 mortgage disability insurance

T25 $150,000 fixed life only = $109.89

With debt disability payment of $3,000 = $237.58

T25 $150,000 fixed life only = $113.31

With debt disability payment of $3,000 = $238.59

T25 $150,000 fixed life only = $109.76

With debt disability payment of $3,000 = $197.42

Persons 3 and 4, 45, smoker, manual workers $200,000 mortgage, $1,500 mortgage disability insurance

T25 $200,000 fixed life only = $128.16

With debt disability payment of $3,000 = $185.37

T25 $200,000 fixed life only = $130.68

With debt disability payment of $3,000 = $186.30

T25 $200,000 fixed life only = $127.98

With debt disability payment of $3,000 = $183.33

T25: term insurance 25 years

Profiles: Men

Profile 1: 

Person 1, 29, non-smoker, professional,
$300,000 mortgage, $3,000 mortgage disability insurance

SSQ

T25 $300,000 fixed life only = $26.73
With debt disability payment of $3,000 = $74.49

Empire Life

$300,000 fixed life only = $27.45
With debt disability payment of $3,000 = $75.43

Assumption Life

T25 $300,000 fixed life only = $27.54
With debt disability payment of $3,000 = $70.74

Profile 2:

Persons 2 and 3, 55, non-smoking, office workers
$150,000 mortgage, $2,000 mortgage disability insurance

SSQ

T25 $150,000 fixed life only = $109.89
With debt disability payment of $3,000 = $237.58

Empire Life

T25 $150,000 fixed life only = $113.31
With debt disability payment of $3,000 = $238.59

Assumption Life

T25 $150,000 fixed life only = $109.76
With debt disability payment of $3,000 = $197.42

Profile 3:

Persons 3 and 4, 45, smoker, manual workers
$200,000 mortgage, $1,500 mortgage disability insuranc

SSQ

T25 $200,000 fixed life only = $128.16

With debt disability payment of $3,000 = $185.37

Empire Life

T25 $200,000 fixed life only = $130.68

With debt disability payment of $3,000 = $186.30

Assumption Life

T25 $200,000 fixed life only = $127.98
With debt disability payment of $3,000 = $183.33

T25: term insurance 25 years

Profiles: Women

Profil

SSQ

Empire vie

Assomption vie

Person 1, 29, non-smoker, professional,
$300,000 mortgage, $3,000 mortgage disability insurance

T25 $300,000 fixed life only = $20.52

With debt disability payment of $3,000 = $82.76

T25 $300,000 fixed life only = $21.24

With debt disability payment of $3,000 = $81.80

T25 $300,000 fixed life only = $21.06

With debt disability payment of $3,000 = $76.14

Persons 2 and 3, 55, non-smoking, office workers
$150,000 mortgage, $2,000 mortgage disability insurance

T25 $150,000 fixed life only = $78.44

With debt disability payment of $2,000 = $210.14

T25 $150,000 fixed life only = $82.94

With debt disability payment of $2,000 = $210.74

T25 $150,000 fixed life only = $78.57

With debt disability payment of $2,000 = $189.81

Persons 3 and 4, 45, smoker, manual workers

$200,000 mortgage, $1,500 mortgage disability insurance

T25 $200,000 fixed life only = $89.28

With debt disability payment of $1,500 = $158.27

T25 $200,000 fixed life only = $92.70

With debt disability payment of $1,500 = $157.10

T25 $200,000 fixed life only = $101.88

With debt disability payment of $1,500 = $168.44

T25: term insurance 25 years

Profiles: Women

Profile 1:

Person 1, 29, non-smoker, professional,
$300,000 mortgage, $3,000 mortgage disability insurance

SSQ

T25 $300,000 fixed life only = $20.52
With debt disability payment of $3,000 = $82.76

Empire Life

T25 $300,000 fixed life only = $21.24
With debt disability payment of $3,000 = $81.80

Assumption Life

T25 $300,000 fixed life only = $21.06
With debt disability payment of $3,000 = $76.14

Profile 2:

Persons 2 and 3, 55, non-smoking, office workers

$150,000 mortgage, $2,000 mortgage disability insurance

SSQ

T25 $150,000 fixed life only = $78.44
With debt disability payment of $2,000 = $210.14

Empire Life

T25 $150,000 fixed life only = $82.94
With debt disability payment of $2,000 = $210.74

Assumption Life

T25 $150,000 fixed life only = $78.57
With debt disability payment of $2,000 = $189.81

Profile 3:

Persons 3 and 4, 45, smoker, manual workers

$200,000 mortgage, $1,500 mortgage disability insurance

SSQ

T25 $200,000 fixed life only = $89.28
With debt disability payment of $1,500 = $158.27

Empire Life

T25 $200,000 fixed life only = $92.70
With debt disability payment of $1,500 = $157.10

Assumption Life

T25 $200,000 fixed life only = $101.88
With debt disability payment of $1,500 = $168.44

T25: term insurance 25 years

How is the cost of my mortgage disability insurance calculated?

The price of disability insurance is calculated on a few basic criteria, such as your age, health status, as well as insurance coverage and duration of the policy.

  • Age: age influences the calculation of risk
  • Health status: including, but not limited to, use of tobacco, nicotine or marijuana products

What is a waiting period?

The amount of your mortgage disability insurance is paid after a waiting period, which is a period between the onset of your disability (the day of your diagnosis) and the first insurance payment.

For most of the insurance companies with which Matcha Insurance works, this period can be selected from the first day or 14, 30, 90 or 120 days. You can also reduce the time by paying a higher premium.

Compare mortgage disability insurance quotes

It is important to take the time to shop around so that you get the best value for your money and your needs.

When shopping for insurance, do not shop with multiple insurance brokers; the price of an insurance product is the same for all brokers. However, if you want to compare the prices of different insurers, an independent broker (like us!) will be able to help you.

Buying mortgage disability insurance with a financial services firm is a win!

One advantage of having your mortgage insurance with a firm like Matcha is that if you change lenders, you don’t have to redo the insurance purchase process. For example, if you change your financial institution when you renew your mortgage, you will have to terminate your mortgage insurance contract and enter into a new one with the other financial institution. Since insurance costs are based on your age and health status, you will certainly face an increase in your payments for the same insurance; you may even be denied if your health has deteriorated.

On the same subject

How do I file a complaint?

  • In case of dissatisfaction, start by getting in touch with our Director of operations, Mrs Sylvie Chartrand:
    Mrs Sylvie Chartrand
    Director of operations :
    sylvie.chartrand@matchainsurance.ca
    Telephone : 1 844 532-3228
  • If you are not satisfied with her response, you can contact our Complaints officer to make a formal complaint:
    Mr. Jean-Patrice Dozois
    Assistant Vice-President, Legal Affairs & Compliance
    1705-625, Avenue President-Kennedy
    Montreal (Québec) H3A 1K2
    Email: jean-patrice.dozois@humania.ca
    Telephone: 1-800-363-1334 or from Montreal: 514-485-1334, ext. 307
    Fax: 1-844-773-4999

The complaint must be filed in writing. If you need help filing your complaint, you may call Ms. Marie-Kim Larouche, Legal advisor, at 1-800-363-1334 ext. 479.

Any complaint made in writing to our Complaints officer will be recorded in Matcha Insurance’s complaints registry if it includes at least one of the following:

  • A reproach against Matcha Insurance;
  • The identification of real or potential harm that a consumer has sustained or may sustain; or
  • A request for remedial action.

A complaint file is opened for each complaint. The file includes all of the documents required to assess your complaint.