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Common Misconceptions About Mortgage Protection
There are plenty of things to consider when buying a home, and looking into options that may help to protect yours and your loved ones' ability to hold onto your home is an important step. A mortgage is a long-term financial obligation, and mortgage protection can help you and your loved ones stay in your home should you pass away or face an unexpected covered critical illness that results in you being unable to work. This article will address common myths and misconceptions about mortgage protection that may be preventing you from considering it.
How does TD Mortgage Protection work?
Before we jump into the misconceptions, let's talk about the features of TD Mortgage Protection. It includes Mortgage Critical Illness and Life Insurance, or Mortgage Life Insurance, that could pay up to $1,000,000 towards the outstanding balance on your mortgage if you pass away or experience an unexpected covered critical illness1. This means that if your claim is approved, the remaining balance of your mortgage could be paid by TD,2 so that's one less thing you or your family would need to coordinate. Use our TD Protection Plan Assessment Tool. Answer a few questions to visualize your financial profile and how our optional creditor insurance coverage can help protect your mortgage in case of a covered health event.
3 misconceptions about mortgage protection
Now that you have a better understanding of how TD Mortgage Protection works, we’ll review three misconceptions about mortgage protection that could be preventing people from getting coverage that they may end up needing in the future.
Misconception #1: Mortgage protection isn’t useful
According to the Heart & Stroke Foundation, 9 in 10 Canadians have at least one risk factor for heart disease and stroke (2022), while The Public Health Agency of Canada estimates that 2 in 5 Canadians will be diagnosed with cancer in their lifetime (2021). Although these things can be scary to think about, mortgage protection may help you feel better about your financial future, knowing that your mortgage could be reduced or paid off should you be diagnosed with cancer (life-threatening), acute heart attack, or stroke1.
Misconception #2: I'm young and healthy and don't need insurance
Generally, the cost of TD Mortgage Protection can be lower when coverage is purchased at a younger age. Since it’s impossible to predict if or when you’ll be diagnosed with a covered health challenge, it may be beneficial and more affordable to get mortgage protection when you’re younger.
Misconception #3: I don't see the point in insurance because I'll figure out a way to cover the expenses if something happens to me.
This may very well be true, depending on your financial situation and standard of living. Only you can calculate the risks and decide if you need any additional financial protection. TD Mortgage Protection is an optional creditor's insurance that may help you feel more financially confident and better equipped to plan for your future. An unexpected covered health event could impact your income and without TD Mortgage Protection, you may need to use your savings, adjust retirement or other financial goals, or even sell your home to cover your mortgage payments. The TD Protection Plan Assessment Tool can help you understand how a covered health event could impact your household finances and whether TD Mortgage Protection is the right choice for you.
Learn more about TD Mortgage Protection
Find out more about TD Mortgage Protection. A TD specialist can explain your TD Mortgage Protection coverage options and answer any questions you may have along the way. Schedule a call, book an appointment at the branch closest to you, or dial 1-888-983-7070.