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Choosing the right loan insurance to protect your lifestyle
Posted on Tuesday November 29, 2022
Choosing the right loan insurance to protect your lifestyle
Life is hectic. Working, cooking, helping the kids with their homework—you’re always on the go. And as if that wasn’t enough, you have to make decisions every day that impact your current and future quality of life.
New home? New insurance!
If there’s one decision that shouldn’t take lightly, it’s buying a new home. Whether you’re buying solo or with your partner, it’s a big decision that comes with long-term financial obligations. You’ll be paying off your mortgage for a long time (25 years for most homebuyers) and all sorts of unexpected things can happen that will affect your finances (think accidents, illness or even death).
If things don’t go as planned you could have a hard time making your payments. Fortunately, solutions like loan insurance can give you peace of mind. Let’s take a look at the different credit insurance options offered by UNI.
Disability insurance: Peace of mind for up to 2 years
According to the World Health Organization, the leading causes of claims are burnout, depression and other mental health issues? Opting for disability insurance when taking out or renewing your mortgage or a long-term personal loan will help you follow through on your financial commitments and maintain your lifestyle if you’re unable to work due to an accident or illness.
Product features
Age criteria |
Enrolment: Age 18 to 64End: Age 66 |
Coverage per insured person |
· Max. $2,500/month· Max. 24 months of benefits Flexible 50% or 100% coverage |
Payment start date |
After a 60-day waiting period |
Critical illness insurance to the rescue
In 2020, the leading cause of death was cancer, followed by cardiovascular disease. The Heart and Stroke Foundation estimates that 9 in 10 Canadians have at least one risk factor for heart disease and stroke. According to the Canadian Cancer Society, an estimated 2 in 5 Canadians will be diagnosed with cancer in their lifetime and about 1 in 4 will die from cancer. Consider taking out critical illness insurance to mitigate the financial impacts of an unfortunate diagnosis.
Product features
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Age criteria
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Enrolment: Age 18 to 55 End: Age 70
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Coverage available per insured person
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Mortgage and long-term personal loan of 121 months or more: $250,000 limit (for all products held); flexible 25%, 50% or 100% coverage Line of credit: $250,000 limit (for all lines of credit); 100% coverage |
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Payment start date |
After the 30-day follow-up period |
Life, loan and line of credit insurance: Avoid leaving your loved ones with debt
There is a difference between life insurance and life insurance for loans. Individual life insurance guarantees the insured person’s loved ones a payout in the event of their death. Loan insurance is a supplementary product that covers a loan in the event of the insured’s death.
Life is unpredictable. When you borrow a large sum for a mortgage or another purchase, like a recreational vehicle that will be paid off over more than 10 years, it’s easy to forget how your life could turn upside down. You have to be prepared for anything.
Prevention is still the best option for people of all ages. Don’t cut corners—otherwise your family could be left with the financial burden of your debt after your death. Take out loan insurance so your loved ones can focus on grieving.
Product features
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Age criteria
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Enrolment: Age 18 to 69 End: Age 75 |
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Coverage available per insured person
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$500,000 limit for loans of 120 days or less and lines of credit $1,500,000 limit for all loans and lines of credit |
The premium for this project is subject to monthly payments for mortgages or lines of credit and one-time payment for personal loans. The insurance amount will be paid out upon the death of the insured person.
Tips to avoid headaches
These insurance products are optional, but they could save you and your loved ones an awful lot of headaches. Mortgage insurance is not required for approval. But talk to the experts at UNI and you’ll see that it’s money well spent.
Contact us for more information. At UNI, the advice is free and peace of mind is worth its weight in gold!
