Scotia Mortgage Protection insurance

Scotia Mortgage Protection is an optional insurance product that can help you financially in the event of certain unexpected events that may have a significant financial impact. In the case of Disability, this coverage can make monthly payments to your mortgage account or in the case of a specified Critical Illness or Loss of Life pay off your outstanding mortgage balance.

• A maximum of two borrowers per mortgage can have protection
• You do not need to apply for this optional insurance coverage to be approved for a mortgage

You have three insurance coverages to choose form:

• Disability: This insurance provides a maximum benefit of up to $3,500 plus your Disability premium per month for up to 24 months per Disability.

• Life:  This insurance can pay off your outstanding mortgage account balance up to $1,000,000 for all your insured mortgage accounts if you pass away.

• Critical Illness: Pays off your outstanding mortgage account balance up to $500,000 per account or up to $500,000 for all your insured mortgage accounts if you are diagnosed with a specific critical illness (e.g. Heart Attack, Stroke or Cancer).

• To be eligible for coverage you must be the principal Borrower, co-borrower or guarantor on the mortgage account, be between the ages of 18 to 64 years old and a resident of Canada. Your account must be in good standing and not be restricted
• You may still apply for life insurance if you are between 65 and 69 years old if you are refinancing an existing mortgage or obtaining a new mortgage within 90 days of paying off an existing insured mortgage.

For Disability benefits insurance coverage:

• You must also be actively working a minimum of 20 hours per week for wages of expectation of profit and be able to perform the regular duties of your occupation. If you are a seasonal worker, you must have proven work history and be capable of performing the regular duties of your job.
  

How Disability Insurance premiums are calculated:

• Your monthly disability premium is based on your age and the monthly equivalent payment amount of your mortgage. Your monthly premium will change any time there is a change in your insured mortgage payment. 

The cost of Disability Insurance:

• The table below sets out the monthly premium rate for every $100 of monthly insurable benefit (not including provincial sales tax):

Here’s an Example:

Taylor was 28 years old at the time of application and his monthly mortgage payment is $1,500.

• Based on the Disability coverage rate table, the premium rate is $1.45/$100

Taylor’s Disability coverage monthly premium rate would be $21.75 which is calculated as ($1.45/$100 x $1,500) + provincial sales tax, where applicable.

How Life Insurance premiums are calculated:

• Your monthly life insurance premium is based on your age and the amount of your mortgage up to $1,000,000, at the time you apply for insurance. If the total of all your insured mortgages exceeds $1,000,000, you will only pay a premium on amounts up to $1,000,000.
• Your premium will not increase due to your age, provided your mortgage balance does not increase during the lifetime of your mortgage.

The cost of Life Insurance:

• The table below sets out the monthly premium rate for every $1,000 of mortgage balance on the date your mortgage protection application is approved (not including provincial sales tax):

Here’s an example:

Andrew was 25 years old when approved for Life insurance coverage with a Mortgage amount of $100,000.

• Based on the Life coverage rate table, the premium rate is $0.11/$1000

Andrew’s Life coverage monthly premium rate would be $11 which is calculated as ($0.11/$1000 x $100,000) + provincial sales tax, where applicable

How Critical Illness Insurance premiums are calculated:

• Your monthly critical illness premium is based on your age and the amount of your mortgage up to $500,000 at the time you are approved for insurance. If the total of all your insured mortgages exceeds $500,000, you will only pay a premium on amounts up to $500,000. 
• Your premium will not increase due to your age, provided your mortgage balance does not increase during the lifetime of your mortgage.

The cost of Critical Illness Insurance:

• The table below sets out the monthly premium rate for every $1,000 of mortgage balance on the date your mortgage protection application is approved (not including provincial sales tax):

Here’s an example:

Lisa was 32 years old when approved for Critical Illness insurance coverage with a Mortgage amount of $300,000.

• Based on the Critical Illness coverage rate table, the premium rate is $0.18/$1000

Lisa’s Critical Illness coverage monthly premium rate would be $54 which is calculated as ($0.18/$1000 x $300,000) + provincial sales tax, where applicable

A premium reduction of up to 20% is available!

If you and another borrower on the same mortgage account applied for and are approved for insurance coverage, you could save up to 20%. Here’s how:

Total maximum discount of 20%

• In Person – Make an Appointment at a Branch – Find a Branch
• Apply Online – Sign on to – Scotia Online
  

• You will need to answer health questions for all types of insurance coverage.
• For Disability and Critical Illness coverage, if you answer “Yes” to the any of the health questions, the Insurer will contact you to review your health information.
• For Life coverage, if you answer “Yes” to the any of the health questions, the Insurer will contact you to review your health information.
  

After you enrol, you will receive a Certificate of Insurance that provides full details of your coverage, including all limitations and exclusions.

Some key conditions, exclusions, limitations and waiting periods apply. They include, but are not limited to:

• No benefit is paid if the death resulted directly or indirectly from intentionally self-inflicted injury.
• For Critical Illness insurance, the benefit is not payable if cancer is diagnosed within 90 days of the Effective Date of coverage.
• For Critical Illness insurance, the benefit is not payable if death results within 30 days after diagnosis of a Critical illness or within 30 days after undergoing surgery.
• For Disability insurance, there is a 60-day qualifying period where no benefits are paid.
  

Scotia Mortgage Protection Insurance Begins:

• On the effective date indicated on the Schedule of Coverage You will receive with your Certificate of Insurance within 30 days of your application approval

Scotia Mortgage Protection Insurance Ends:

• Age 65 for Critical Illness coverage;
• Age 70 for Life and Disability coverage;
• The date of receipt of your request to cancel coverage; or
• The date your account is closed, frozen or otherwise blocked from usage.
  

To make a claim, follow these steps:

• Call us toll-free 1-855-753-4272, between 8am and 8pm (EST), Monday to Friday
• Have your Scotia Card number or account number ready
• Once your enrollment is confirmed, your customer service representative will send you a claims package (electronically or by mail)  for completion
• Send the completed forms and any supporting documents to the Insurer - contact details will be provided on the claim forms
• Once the assessment is done, you will be notified of the decision in writing by the Insurer

For more information, see the video How to Make a Claim 

If you replace an existing insured Mortgage with one or more new Mortgage accounts, your existing coverage can be transferred to the new Mortgage account(s) provided that the total amount approved for the new Mortgage(s) is equal to or less than the current Outstanding Account Balance of the existing insured Mortgage, your coverage has not been cancelled or terminated, no request is made to revise the existing coverage in any way whatsoever, and the Scotia Mortgage Protection Transfer Form is properly completed and signed.

If you refinance your Mortgage, insurance coverage terminates, and you need to reapply for coverage on the new Mortgage amount.

However, you are NOT required to answer the health questions on the application for Scotia Mortgage Protection for life insurance coverage when refinancing, if:

• You increase your insured Mortgage balance by $200,000 or less; and
• The total of all your insured Mortgage accounts after the increase does not exceed $500,000.

• You may cancel your coverage at any time. If you cancel within 30 days of the coverage effective date you will receive a full refund of any premium paid.
• Call 1-855-753-4272 between 8am and 8pm (EST), Monday to Friday, and a Customer Service Representative will be pleased to assist you.

• Scotia Mortgage Protection is underwritten by The Canada Life Assurance Company under a Group Policy issued to the Bank of Nova Scotia.
• All coverage is subject to the terms and conditions outlined in the Certificate of Insurance which you will receive upon enrolment.
• The insurance premium and applicable sales tax will be charged to your Scotiabank mortgage account
• The Bank of Nova Scotia and its employees are not agents of The Canada Life Assurance Company, nor can they waive or change any terms of the Scotia Mortgage Protection plan.
• The Bank of Nova Scotia receives an administration fee from the Insurer to distribute this insurance.