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How Critical Illness Insurance Can Help with Your Mortgage

By September 22, 2021 Advisor, Blog, Consumer, News

Homeownership can be expensive. Add up the mortgage payments, bills, property taxes, home insurance, renovations, and repair bills, and it’s enough to make you a little weak in the knees. Unlike renting, homeownership is a long-term financial commitment; you are responsible for your mortgage payments – and associated costs of homeownership – throughout most of your adult life.

An integral part of making your regular mortgage payments is not just your income but your health. We take it for granted that staying healthy is an essential component of paying down your mortgage.

Have you ever thought about what would happen to your mortgage payments if you were unable to work due to an illness, even just for a short period?

Thanks to modern medical advances, survival rates for people who have a critical illness, like cancer or heart disease, have significantly increased. If a critical condition were to impact your life, you would want to focus on recovery, not worry about mortgage payments.

One way to hedge against this financial uncertainty is with a critical illness insurance policy. Most people think of protecting their family and loved ones with a life insurance policy, but fewer people consider financial protection from a critical illness.

A critical illness policy can provide peace of mind should you become too ill to work, so you would not be in jeopardy of defaulting on your mortgage payments.

What Is Critical Illness Insurance?

If you are diagnosed with a specified covered illness (such as cancer, stroke, and heart disease), critical illness insurance provides a one-time lump-sum payment that you can spend on anything you want while you recover. It’s referred to as a living benefit, and there’s no waiting period; just a tax-free payout.

Critical illness insurance can serve as a financial safety net for you and your family. It helps you pay for significant expenses – such as uncovered treatments and medication, hiring help for your family, or covering outstanding debts, to name a few – over the short term while you focus on getting well and getting back to work.

Critical Illness Insurance & Your Mortgage

Since critical illness insurance is a lump-sum payment, how you spend it is up to you. Covering your mortgage payments is just one option.

Mortgage payments add up and missing them can threaten your livelihood. Critical illness insurance can bring relief to your family during your recovery period, helping you cover a significant monthly expense.

Depending on the critical illness plan you choose, your policy could pay out between $10,000 and $100,000. Policies with higher coverage amounts have higher monthly premiums.

You may be asking yourself: “if mortgage coverage is my primary goal, shouldn’t I just purchase critical illness mortgage insurance from my bank?”.  While this form of insurance coverage will help pay for mortgage payments in the event of a critical illness, these payouts are directed toward your mortgage, nothing else. A critical illness insurance plan, on the other hand, allows you to use the payout for any expense of your choosing; your mortgage is just one option.

Ready To Purchase a Critical Illness Insurance Policy?

As a homeowner, the best time to buy a critical illness policy is now. A life-altering illness can impact your physical well-being and the emotional and financial health of your family. While you’re healthy, ensure that you can continue to support them and keep your home, even in the event of the unexpected.

Make critical illness insurance a component of your financial plan, protecting your most significant investments and those you love.

Canada Protection Plan is pleased to offer Critical Illness Insurance to help bridge the gap between provincial insurance coverage (such as OHIP) and ensure you have the financial protection and care that you need. Talk to an insurance advisor today to learn more about how Critical Illness Insurance can support your overall financial goals.

Critical Illness Insurance can play an important role in providing mortgage protection. Speak to your advisor or contact Canada Protection Plan for a no obligation quote.
Canada Protection Plan is one of Canada’s leading providers of No Medical and Simplified Issue Life Insurance. Our mission is to provide reliable protection and compassionate service from coast to coast with easy-to-purchase life insurance, critical illness insurance and related products. Our expanding product choices will help you get the coverage and peace of mind you need for a better financial future. Canada Protection Plan products are available through over 25,000 independent insurance advisors across Canada.

Canada Protections Plan and Foresters, their employees and life insurance representatives, do not provide, tax advice. Prospective purchasers should consult their tax advisor.


To learn more about Canada Protection Plan and our line of comprehensive No Medical and Simplified Issue life insurance solutions, call Broker Services at 1-877-796-9090 and we will be happy to assist you or put you in contact with Sales support in your region.

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Pour en savoir plus sur Plan de protection du Canada et sur sa gamme complète de solutions d’assurance vie sans exigence médicale et à émission simplifiée, communiquez avec les personnes-ressources des Services de courtage au 1 877 796-9090, qui seront heureuses de vous aider ou de vous mettre en contact avec l’un de nos soutiens aux ventes dans votre région.

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