Sun Life mortgage insurance 2024 review + quotes
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Discover the methodologyLooking for a flexible way to protect your home and family? Sun Life Mortgage Protection Insurance offers a unique blend of term life and critical illness coverage, making it a standout choice for Canadians.
With Sun Life, you're not just covering your mortgage, you're securing peace of mind for whatever life throws your way. Discover how Sun Life's mortgage insurance can adapt to your changing needs, providing more than just traditional coverage.
Use our free tool to get personalized quotes from Sun Life and compare it with other top providers like Canada Life right here.
Sun Life Mortgage Insurance: 5 Key Takeaways
- Is advertised under the name Sun Life Mortgage Protection Insurance
- Sun Life’s mortgage insurance is a mix between critical illness and term life insurance
- Quotes and accounts are managed through Sun Life’s new digital-first Prospr platform
- Sun Life mortgage insurance is not the same as your typical Canadian mortgage cover
- The benefits of the policy are technically more flexible than standard mortgage insurance
Our Sun Life mortgage insurance review: Comprehensive coverage
Sun Life mortgage insurance, named Sun Life Mortgage Protection Insurance, is a good alternative to your classical forms of mortgage insurance or creditor insurance due to its flexibility, portability, and overall coverage.
Depending on personal circumstances, the payable benefit can be higher than creditor insurance and the benefit is paid directly to the insured’s beneficiaries, as opposed to the mortgage lender.
These factors provide Sun Life mortgage insurance with a distinct advantage over competitors, in addition to being one of the largest financial institutions in Canada. Sun Life was founded in 1865 and is now headquartered in Toronto, Ontario, from where they manage the financial and insurance accounts for more than 6 million Canadians.
If you think Sun Life could the a good choice for you, you can get a personalized quote right here. Click the button below and get free quotes tailormade for you.
Regardless of the insurance provider and products, there will be advantages and disadvantages. We have compiled the most important regarding Sun Life mortgage insurance for you below.
Pros of Sun Life mortgage insurance
- Less restrictive than creditor insurance as it isn’t tied to your loan
- Can be taken with you wherever you move in Canada
- Less restrictive when it comes to larger coverage amounts
- The premiums are likely cheaper the older you are
- Coverage doesn’t end when your mortgage is paid off
- Death benefit can be used for whatever the beneficiaries need
Cons of Sun Life mortgage insurance
- It’s not a pure mortgage protection insurance policy
- Premiums are likely more expensive for young individuals with smaller mortgages
- Premiums aren’t transparent or easily available on the website
- Harder to qualify for when compared to mortgage insurance
If you’re on the fence about Sun Life, you can always compare the policy to other mortgage life policy providers and plans. Simply use the online mortgage life comparison tool below to weigh up the pros and cons of multiple options.
Compare mortgage life insurance in seconds
What is Sun Life mortgage insurance?
Sun Life mortgage insurance, advertised under the name Sun Life Mortgage Protection Insurance, is simply, in Sun Life’s own words, a combination of critical illness and term life insurance.
When applying for coverage, a Sun Life advisor will help you decide if you need a standard term life insurance plan, a critical illness policy, or a combination of both. You can then decide on the length of coverage, overall coverage amount, and beneficiaries.
Sun Life mortgage insurance offers the insured’s immediate family or other beneficiary a pre-determined amount of money (payable benefit) if they pass away.
Where critical illness is also applied to the policy, a payout may be provided when the insured is diagnosed with any number of critical illnesses. The payable benefit from Sun Life mortgage insurance is always tax-free, so you never have to worry about paying taxes.
Good to know
Is your down payment less than 20%? You must take High Ratio Mortgage Insurance (HRMI). HRMI, like CMHC mortgage insurance, is mandatory for most conventional mortgages with a down payment below 20%. This is because lenders consider such loans riskier due to the borrower's smaller stake in the property. Read our guide on High Ratio Mortgage Insurance to understand how it works.
How does Sun Life mortgage insurance work?
Sun Life mortgage insurance works by providing life insurance coverage to the insured individual. If the insured passes away within the term limit of the life insurance, then their named beneficiaries will receive the death benefit tax-free.
Similarly, if the Sun Life mortgage insurance policy includes critical illness, the insured will receive the payable benefit if they are diagnosed with an insured illness within the policy’s term limit.
With Sun Life’s mortgage insurance, the policyholder can:
- Keep the insurance policy active after the mortgage is paid off
- Keep the policy when moving to a new property
- Decide who will receive the death benefit when you pass
Furthermore, regardless of whether you received the critical illness benefit or your beneficiaries receive the death benefit, the recipient can decide where and how the insurance payout will be spent. For example, the money can be used to:
- Pay the remainder of a mortgage loan
- Clear debts and financial liabilities
- Cover ongoing living expenses
- Pay for final expenses such as funeral costs
Good to know
While Sun Life offers comprehensive coverage, you must compare other plans like Cumis Mortgage Insurance, Scotia Bank Insurance, and Canada Life mortgage insurance among others before zeroing in on it.
What is the difference between Sun Life Mortgage Protection Insurance and mortgage insurance?
Sun Life’s mortgage insurance works differently when compared to traditional mortgage insurance, also known as creditor insurance. This is because the policy is a combination of term life insurance and critical illness insurance that provides the insured or beneficiary with a payout if the worst were to happen.
Strict mortgage insurance, on the other hand, exists simply to cover any outstanding mortgage should the insured pass away.
| Specifics | Sun Life Mortgage Insurance | Mortgage Insurance |
|---|---|---|
| Who is covered by the insurance only? | Single or joint partners who are eligible for cover | Single or joint insureds listed on the specific mortgage loan |
| What does the insurance cover? | No regulations regarding the use of the death benefit | Covers the outstanding balance of the insured’s mortgage |
| Who is the beneficiary of the mortgage? | Beneficiaries can be anyone named by the insured | The mortgage lender |
| When does coverage end? | When the policy term ends Upon cancellation Upon the death of the insured | When the mortgage has been paid off Upon cancellation On the death of the insured |
| Is the insurance portable? | Commonly, no* | |
| Is the policy convertible | Yes, in some instances you may be able to convert the policy to a permanent life solution |
*Sagen Mortgage Insurance has a program that allows for mortgage default insurance to be ported between properties.
When to consider mortgage insurance or Sun Life mortgage insurance?
Whether to choose traditional mortgage insurance or Sun Life mortgage insurance can be difficult. Despite the differences outlined above, you still might not know which option is right for you in your current situation.
In fairness, it is difficult to argue whether Sun Life mortgage insurance is objectively better than standard mortgage insurance, or vice versa since both have numerous benefits depending on your unique circumstance.
When mortgage insurance is better than sun life mortgage insurance
- Strict budget and early in career: Mortgage insurance premiums tend to be cheaper for younger individuals than term life insurance. (Read our guide on term life vs mortgage insurance)
- Small mortgage: Since mortgage insurance premiums are based on the amount of mortgage, smaller mortgages equal cheaper premiums.
- Limited financial obligations: If you don’t have any other obligations outside of your mortgage, then mortgage insurance can be quick and easy to sign up for.
- Simplicity: For those who struggle to apply for normal life insurance, mortgage insurance may be the best option. Limited medical questions and simpler underwriting means that it is easier to get insured.
When Sun Life mortgage insurance is better than standard mortgage insurance
- Later in life: As you get older insurance premiums increase. However, term life policy increases aren’t as steep as traditional mortgage insurance meaning you might save money on premiums with Sun Life mortgage insurance.
- Extensive cover: Traditional mortgage insurance usually has an upper limit which your mortgage may exceed. Term life insurance is then better suited to ensure full coverage in case the worst were to happen.
- Multiple financial obligations: If you have multiple financial obligations such as children, car payments, and a high cost of living, Sun Life insurance would be better suited as beneficiaries can allocate the death benefit as they see fit.
- Flexibility: Sun Life mortgage insurance can be taken with you wherever you move within Canada, meaning you have fewer life admin duties, whereas normal mortgage insurance is usually tied to your current property.
You can get quotes directly from Sun Life right here to see what your best options are.
If you’re still finding it hard to determine what the right choice is for you then use our comparison tool below. It highlights all the key differences between Canada’s best mortgage insurance providers which might help you find a policy you’re comfortable with.
Compare mortgage life insurance in seconds
What does Sun Life mortgage insurance cost?
Unfortunately, Sun Life mortgage insurance costs aren’t readily available to the public. You would have to speak directly to a sales advisor to determine the actual cost of your policy.
However, the rule of thumb is that the Sun Life mortgage insurance premiums will be cheaper the younger you are, the healthier you are if you don’t smoke, and choose a shorter term limit. The insurance rates will also be dependent on numerous factors which include:
- Age
- Gender
- Pre-existing medical conditions
- Smoking status
- Residence
- Term length
- Coverage limit
- Occupation
- Optional add-ons
Comparatively, standard mortgage insurance premiums are transparent but aren’t as specific to your unique circumstances. For example, while mortgage insurance costs will consider your smoking status and overall coverage, the cost will be based on a set premium rate that is applied to the amount of your outstanding mortgage and does not take into consideration things like gender.
Is mortgage life insurance mandatory?
You are under no obligation to purchase mortgage life insurance under any circumstances. If a business is pressuring you to buy mortgage life insurance and making it seem like it is mandatory they may be trying to mislead you.
How to get a Sun Life mortgage insurance quote?
You must speak directly to a Sun Life advisor through Prospr for quotes from the company. Prospr is a branch of Sun Life that was launched in March 2022 dedicated specifically to providing clients with advice on protection, wealth, and health, through an online platform.
Prospr is designed to be a digital-first platform, however, it does assign you to a human advisor who helps you with insurance quotes and advice. You can book a virtual appointment with a Prospr Sun Life advisor directly through the website https://www.prosprsunlife.ca/ or by calling them at 1-888-444-9983.
Prospr advisors are available on weekdays from 8 am to 8 pm ET and from 10 am to 4 pm ET on Saturdays.
While this might seem daunting, we've made it simple for you. The easiest way is to click the button below and get Sun Life mortgage insurance quotes in no time.
How to contact Sun Life mortgage insurance?
You can also reach Sun Life mortgage insurance using the contact details in the table below.
| Medium of contact | Sun Life Mortgage Insurance Contact Details |
|---|---|
| Phone number | 1-888-444-7110 |
| Email address | [email protected] |
| Mail address | 1155 Metcalfe Street, Montreal, QC H3B 2V6 |
