Affordable Protection for your Most Valuable Investment You are purchasing a home that you've worked so hard to obtain for your family. It's probably one of the largest financial investments you'll ever make. When you take out a mortgage, you're increasing the financial obligations of your family and your need for increased protection. If the primary income earner of the family dies, the mortgage payments may become unmanageable and lead to financial hardship and the necessity of selling the family home. Mortgage Life Insurance can help ensure that your family can keep your home, should you die before the mortgage is paid off. Both you and one co-borrower can be insured under joint coverage. In the event of a death the mortgage would be paid off leaving the family without the burden of these mortgage payments. The application process often involves a brief health questionnaire before approval is given and applicants generally have to be within the ages of 18 to 65 years. Premiums are based on your age and the amount of your mortgage when you apply for coverage and these premiums will not increase for the life of your mortgage because of increased age or changes in health. Assume you are 39 years of age with a $100,000 mortgage and 25 year remaining amortization. The cost per $1,000 of mortgage debt is only 18 cents. Given the mortgage amount the monthly premium would be $18 per month. This is not a great deal of money in return for the comfort of knowing your family will be debt free in the event of your death. If you were to invest this same amount every month for the next 25 years at 4% annual interest, you would have accumulated a mere $10,700. For some this is a small opportunity lost for the peace of mind purchased. Drawbacks to Insurance Offered by your Financial Institution Mortgage insurance offered by the financial institution that holds your mortgage has several drawbacks in comparison. If you transfer your mortgage to another lending institution, you may lose your creditor insurance and must reapply at your then current age and health status. The result is you may not be eligible for new coverage. A personally-owned policy arranged through Beyer Mortgage Services Inc. is fully portable. It stays with you wherever you have your mortgage. Protect the Future of your Family's Home. You can protect your family's future with Beyer Mortgage Services’ Group Mortgage Life and Disability Insurance Plans. This convenient insurance package pays off the mortgage balance in the event of your death. And now it can also be added to any existing Beyer Mortgage Services mortgage. To find out about adding life coverage to your existing mortgage, talk to a BMS representative at 1-800-773-3711 from 9 a.m. to 5 p.m. PST. Disability Coverage is also Available What if you become ill or suffer a serious injury? If you were unable to work as a result of your sickness or injury, could your family continue to make the mortgage payments? Would the security of your home be taken away? You can also choose coverage that protects your mortgage payments if you become totally disabled. If you're unable to work for 60 days or more, disability coverage will pay up to 100% of your monthly mortgage payments for up to two full years. Disability coverage is available only at the time of mortgage funding and is packaged with life coverage. Both the BMS life package and the life and disability package are very affordable because premiums are calculated on special group rates. And if you are a non-smoker, you can save even more. In short: Affordable Protection for you and your family - premium are calculated on special group rates. Both Life and Disability Insurance are available. Premium savings for non-smokers. Portable coverage - it stays with you wherever you have your mortgage. Ask Yourself If you were to die prematurely, could your family continue making the mortgage payments? Would the security of your home be taken away? If you would like more information about mortgage insurance, talk to your Beyer Mortgage Services mortgage consultant. Frequently Asked Questions Am I eligible to apply for Mortgage Life and/or Disability Insurance under this Plan? How much coverage is available? How do I apply for coverage? How affordable are the premiums? When does coverage terminate? Are there any limitations or exclusions? Am I eligible to apply for Mortgage Life and/or Disability Insurance under this Plan? One or two people may be insured under the Group Mortgage Life and Disability Plans -- the mortgage debtor and/or the co-debtor who is/are registered on the title, provided the individual(s) is/are living in the mortgaged property. Guarantors are eligible for Mortgage Life. To apply, you must: be over 17 and under 65 years of age be entering into a mortgage agreement be a resident of Canada have a mortgage amortization term which does not exceed 25 years; for disability insurance only, be gainfully employed for a minimum of 20 hours per week How much coverage is available? The maximum amount of life insurance is $500,000 for ages 18-59 and $400,000 for ages 60-64. This means that the total of all mortgages insured for Mortgage Life through our plans cannot exceed these maximums. The maximum amount of disability insurance is $2 000 per month for ages 18-59 and $1 200 for ages 60-64. This means all monthly payments insured for disability coverage through our plans cannot exceed these maximums. There is a 60 day waiting period under the Mortgage Disability Program. This is an elimination plan which means that benefits begin to accrue on the 61st day of your disability. How do I apply for coverage? At the time you apply for your mortgage you will be offered Mortgage Life and Disability Insurance. If you choose to apply for one or both plans, your Mortgage Broker Professional can immediately quote and print your application from the MORTY System. If you respond to "NO" to the health questions: For mortgage life, provided your mortgage is $250,000 or less, you will automatically receive your coverage immediately or on your requested effective date. For mortgage disability, you will receive your coverage automatically or on your requested effective date. IF you responded "YES" to the health questions: For mortgage life and/or mortgage disability you will be asked to complete a more detailed supplemental health questionnaire for review by our underwriters. For mortgage life, if your mortgage is $250,000 or more, you will be required to complete the supplemental health questionnaire, regardless of your responses to the health questions. After a review of your supplemental Health questionnaire, if your coverage is approved, the underwriters will contact you in writing. How affordable are the premiums? Life Insurance premiums are based on your mortgage amount, your smoking status and your age on the effective date of your insurance. Disability Insurance premiums are based on your monthly mortgage payment, the waiting period you choose and your age on the effective date of your insurance. For your convenience, your insurance premium is deducted monthly from your bank account on any day of the month you choose. You won't have to worry about missing a payment. Your premiums will remain level unless you change your mortgage. When does coverage terminate? As long as premiums continue to be paid and the group policy remains in place, coverage will not terminate until the earliest of the following dates. the mortgage balance is paid in full; or the amortization term or principal amount payable is changed; or We have received written notice from all applicable insured’s, requesting termination; or the finance source has demanded repayment of the mortgage balance; or upon payment of the life insurance benefit; or one or both insured reach age 75 (for life); age 70 (for disability); or the right, title or interest in the mortgaged property is sold, conveyed, transferred or otherwise disposed of; or 25 years after the coverage becomes effective. Are there any limitations or exclusions? For life insurance the only exclusion is suicide within 2 years of the effective date of your life policy. Certain additional limitations and exclusions apply to disability insurance. For example, there are some pre-existing conditions that may not be covered. Please refer to your certificate for details.