Patricia Foley
Associate Vice-President of Delivery Excellence, Life, Health and Credit Protection at TD Insurance
With the increasingly high costs of home ownership, Canadians may want to consider mortgage and line of credit protection insurance.
Optional mortgage and line of credit protection insurance can help pay off or pay down an outstanding mortgage or line of credit balance if an unexpected, covered event occurs during the coverage term, such as death, covered accidental dismemberment, or critical illness, depending on the protection selected.
Tailored solutions
For many Canadians, a mortgage or home equity line of credit is one of their biggest financial obligations, and credit protection insurance can help families stay in their home, particularly if the sole breadwinner passes away or is diagnosed with a covered critical illness.
“This type of coverage is about planning ahead to help reduce the financial burden on loved ones during a difficult time,” says Patricia Foley, Associate Vice-President of Delivery Excellence, Life, Health and Credit Protection at TD Insurance. “With credit protection insurance, families may be better positioned to stay in their home and avoid dipping into their savings, delaying retirement plans or other financial goals.”
As more Canadians look for ways to safeguard their home, their family, and their long-term financial stability, understanding optional protection products can help them make more informed decisions and feel financially confident.
Insurers often offer different protection plans for different types of credit, like a mortgage, line of credit, or loan, which can help consumers choose coverage that aligns with their financial priorities and needs.
According to Foley, many Canadians are unfamiliar with how these products work, what they cover, and the value they provide. Like all insurance products, coverage is subject to eligibility requirements, exclusions, limitations, and policy terms, which is why it’s important to review your options and personal situation with a insurance advisor before applying.
The questions to ask
The cost of mortgage and line of credit protection insurance is generally determined by factors such as the applicant’s age, the type of coverage selected, health information, and the amount of debt being insured. Many applicants can apply by answering health-related questions rather than completing a full medical examination.
Many insurance providers, including TD Insurance, offer online assessment tools to help consumers estimate premiums and find the right coverage options.
While this is a topic many people avoid thinking about, Foley encourages people to consider these questions:
- Could my partner, family, or dependents continue paying the mortgage or home equity line of credit without my income?
- Would paying off or reducing this balance help my loved ones stay in the home or avoid difficult financial trade-offs?
- Do I already have life or critical illness insurance, and would it be enough to cover the balance of my mortgage or home equity line of credit?
- Would optional mortgage or line of credit protection insurance give me added confidence as part of my broader financial plan?
“The key takeaway is that mortgage and line of credit protection can be an important consideration for borrowers who want to prepare for the unexpected,” says Foley. “As more Canadians look for ways to safeguard their home, their family, and their long-term financial stability, understanding optional protection products can help them make more informed decisions and feel financially confident.”
Visit tdinsurance.com today to better learn how TD Protection Plans can help you protect your TD mortgage or line of credit.
