More Canadians should consider mortgage protection insurance. Here's why

The application process for Manulife's Mortgage Protection Plan just received a digital makeover

More Canadians should consider mortgage protection insurance. Here's why

If 2020 taught Canadian homeowners anything, it’s that you never know what’s hiding around the corner, or the many ways it might turn your world upside down.

This increased wariness has created an ideal scenario for mortgage brokers to educate their clients about the benefits of mortgage protection insurance. Not only are brokers likely to find a receptive audience for their advice, but the value delivered – and the compassion displayed – when providing such information are sure to be remembered when it comes time for clients to renew, refinance, or start shopping for their next property.

Canadians can benefit from more protection

A survey conducted by Manulife last October found that most Canadians could use more mortgage protection, even if they may not realize it.

According to Clinton Wong, Head of Mortgage Creditor Insurance for Manulife, data from a recent survey1 conducted by the company found that less than half of homeowners who carry a mortgage reported feeling confident in their families’ ability to weather unforeseen, fiscally disruptive events.

“Not a lot of folks are feeling secure in their ability to handle disruptions that could impact their finances, such as an unexpected death in the family,” Wong said. “To me, this makes the role of the broker even more important in terms of informing their clients about mortgage protection and making sure that they’re aware of their options.”

The numbers appear to bear Wong out: 56% of those surveyed told Manulife that they would find it valuable if a mortgage broker talked to them about potential avenues for protecting them and their families.

But credibly walking clients through their mortgage protection options is not something all brokers are comfortable doing, and holding borrowers’ hands as they work through their applications is not a task a busy broker may typically have time for. Wong says that’s why Manulife developed a new digital application process for its Mortgage Protection Plan.

“It’s something we’ve been working on for a while now,” Wong told Mortgage Broker News. “We’re very proud of how many homeowners we’ve been able to sign up and help protect using the previous paper-driven process, but applying online boosts efficiency and convenience. Borrowers can still submit their applications the traditional way, but the digital option gives them more flexibility to interact with us the way they want to.”

In addition to helping borrowers access mortgage protection quickly and easily, Manulife’s new digital application also provides additional information, including customer reviews, the benefits and features of different products, and statistics that help make clear the importance of mortgage protection.

That latter feature is especially important. Mortgage protection, because it is ancillary to the mortgage process, is rarely front of mind for homeowners. Brokers, by educating their clients on the ease with which they can apply for Manulife’s Mortgage Protection Plan, can help make mortgage protection both a priority and a reality.

“It really highlights the role a mortgage broker plays in discussing mortgage protection with their clients,” Wong said. “Everyone’s focused on the finances – they’re discussing their incomes, their debts, their assets – but I think having that extra conversation and really diving into what it could take to protect them in the event of unforeseen circumstances is critical.”

Borrowers who enrol in Manulife’s Mortgage Protection Plan can rest easy knowing that their families will remain secure in their homes if the mortgage holder is incapacitated or passes away. In the case of death, the remaining mortgage balance will be paid; if a serious accident or illness occurs and the homeowner can no longer work, Mortgage Protection Plan can cover up to 24 consecutive months of mortgage payments.

Assisting clients in their quest for long-term financial security is nothing new for mortgage brokers; it’s why they get out of bed in the morning. By educating themselves and their clients about Manulife’s new digital take on the mortgage protection application process, brokers can help Canadians attain peace of mind and ensure they have a home of their own in which to enjoy it.

 ¹ Manulife, Mortgage Creditor survey, October 2020

Manulife’s Mortgage Protection Plan is underwritten by the Manufacturer’s Life Insurance Company (Manulife). © 2021 The Manufacturers Life Insurance Company. All rights reserved.