How to get Mortgage Protection Insurance If You Are High Risk Or Hard To Insure
Getting affordable mortgage protection insurance in Canada can be difficult if you are hard to insure or considered high risk by the insurance companies. You can be considered high risk or hard to insure if:
- You have pre-existing health conditions such as: cancer, diabetes, heart disease, stroke, etc.
- You have a high-risk lifestyle: Perhaps you participate in hazardous activities such as sky diving, scuba diving, rock climbing, race car driving, etc.
- You have a high-risk occupation: If you are a fireman, soldier, forestry worker, oil patch worker, policeman etc.
What’s frustrating is that someone who the insurance companies may deem high risk or hard to insure need affordable mortgage protection insurance more than anyone else. They know that their medical history, occupation, and lifestyle puts them at risk.
Having the obligation of a mortgage doesn’t disappear if we pass away, become disabled, or get diagnosed with a life-threatening illness. How will we be able to make our monthly mortgage payments if we lose our ability to earn money? An even more sobering thought is: how will our loved ones be able to meet their obligations, including the mortgage, if we have passed away and cannot help them?
What sort of damage to our finances or credit would having to foreclose on our mortgage cause?
No Canadian should need to stay up at night worrying about these scenarios because they cannot find affordable mortgage protection insurance coverage. But unfortunately, without a professional independent life insurance broker helping them, that’s exactly what may happen.
The good news is that with the help of an insurance broker, Canadians that are in this situation can find a solution. The reason why is because a good insurance broker knows the various insurance companies in the marketplace very well. That means that he knows what sort of situations these insurance companies are willing to insure and which ones they will not. This helps Canadians avoid the number one mistake when applying for life insurance: applying to the wrong company by thinking all companies are the same. This mistake can cost them thousands of dollars in premiums or even provide the wrong type of coverage for their situation.
Here is how a good independent life insurance agent in Canada can get you affordable mortgage protection insurance when others can’t: its all about process.
- Insurance Needs Analysis: The first step to getting affordable mortgage protection insurance is knowing how much you should get. We know that your mortgage will need to be covered, but what about other debts that you might have, or loss of income?
- Health and Lifestyle Evaluation: For someone who is in the high risk or hard to insure category this step is absolutely critical and only the best life insurance brokers will take the time to do this with their clients. It is a brief questionnaire that takes a snapshot of the clients health history and lifestyle. This is crucial when determining which insurance companies to apply to because we will already know what issues could come up in the application and underwriting process.
- Pre-Underwriting: If your licensed insurance advisor is truly independent and doing a good job they will have access to underwriters who will look at your lifestyle and health evaluation before it is sent to an actual insurance company for underwriting.
This will let us know what we can expect from the insurers and will help us to determine what type of insurance carrier we should send the application to and whether that is an insurance company that will not require a medical exam or a simplified medical questionnaire.
- Getting a Quote: Once we know which insurance company to send it to and how the insurance companies may treat the application, we can get a free no obligation quote from the insurance broker.
- Completing the Application: This step is often the easiest if we have done everything before it well, it should result in an easy approval.
If this process is followed, Canadians can get affordable mortgage protection insurance even if they are hard to insure or high risk. With the help of a licensed insurance advisor, they can save thousands of dollars in premiums while having the peace of mind of knowing that they’re home will not be foreclosed on if they get injured, die, or get diagnosed with a life threatening illness.
In Canada everyone deserves the right to financial security, and this is often difficult to obtain if you cannot get affordable income protection. Fortunately, there is a solution for even the most difficult cases. Get in touch with a licensed insurance professional to find a solution that is right for you.