Scotia Bank Mortgage Insurance 2024 Review
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Discover the methodologyIf you have a mortgage, think of Scotia Bank Mortgage Insurance as a safety net for your home. It's straightforward: this insurance helps cover your mortgage payments if life throws you a curveball, like a serious illness, losing your job, or worse.
It's designed to protect you and your family by keeping your home secure, even when unexpected events happen. With plans for critical illness, disability, job loss, and life coverage, Scotia Bank ensures that whatever happens, your biggest investment—your home—is taken care of.
Let's dive in and explore everything about Scotia Bank mortgage insurance: coverage options, pros, cons, costs, eligibility, and how to apply. Use our free tool to compare top mortgage insurance plans and get personalized quotes tailormade for your budget and needs.
Scotia Bank Mortgage Insurance: 6 Key Takeaways
- The insurance covers critical illnesses, life events, disability, and job loss.
- Eligibility requires being a legal resident of Canada, aged 18 to 64, and more.
- Costs vary by age and mortgage amount.
- You get discounts for higher mortgage values and additional coverage.
- Canceling the coverage is an option at any time.
- Get a full refund available within 30 days of the coverage effective date.
Our 2024 review of Scotia Bank mortgage insurance
Scotia Bank mortgage insurance in Canada stands out with its four main coverage plans under the category Scotia Mortgage Protection Insurance: Critical Illness Protection, Life Insurance, Disability Support, and Job Loss Safeguard, each designed to offer comprehensive protection against life's unpredictabilities.
These plans cover up to $1,000,000 for life events and $500,000 for critical illnesses, ensuring your mortgage is managed during difficult times. With features like up to $3,500 monthly support for disability or job loss and the flexibility to cater to various needs, this insurance is a beacon of security for homeowners.
It's ideal for Canadian residents aged 18 to 64 who seek a safeguard for their family's future, offering peace of mind through guaranteed coverage and potential savings on premiums. Whether facing health challenges, unexpected job loss, or the need for long-term security, Scotia Bank provides a solid foundation to protect your home and loved ones.
If you want to be sure Scotia Bank mortgage insurance is the best plan for you, you must compare it with other options in the market. Use our free comparator tool below to explore the best mortgage insurance in Canada and get free personalized quotes so you can find a plan that suits all your needs, and in your desired budget.
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Key Features of Scotia Bank Mortgage Insurance
- Scotia Mortgage Protection is a voluntary insurance product.
- Protection is available for a maximum of two borrowers per mortgage.
- Importantly, obtaining approval for a mortgage does not require a separate application for this optional insurance coverage.
Pros
- Convenient to set up and manage alongside your mortgage
- Guaranteed coverage
- Flexible coverage options
- Potential cost savings
Cons
- Limited coverage
- Decreases over time as your mortgage balance shrinks
- Lack of portability
- Potential for duplicate coverage
What does Scotia Bank mortgage insurance cover?
There are four main types of coverage available:
- Critical Illness Protection: In the event of a covered critical illness diagnosis, this coverage can settle the outstanding balance on your Scotia Mortgage account, providing support of up to $500,000 for all insured mortgages combined.
- Life Insurance: In the unfortunate event of your passing, this coverage can assist in paying off the outstanding balance on your Scotia Mortgage account, offering protection of up to $1,000,000 for all insured mortgages combined.
- Disability Support: Should you become disabled and unable to work, this coverage can manage your Scotia Mortgage account payments, assisting with up to $3,500 per month. The coverage is applicable for a maximum of 24 months per disability, per mortgage, with a 60-day waiting period from the date of disability.
- Job Loss Safeguard: In the case of involuntary termination by your employer (not for cause) or permanent layoff, this coverage can handle your Scotia Mortgage account payments, offering support of up to $3,500 per month. The coverage extends for a maximum of 6 months per job loss, per mortgage, with a 60-day waiting period from the date of job loss.
Is mortgage insurance worth it in 2024?
Mortgage insurance can provide your loved ones with the security of a fully paid-off home, ensuring they have one less financial burden to worry about during a difficult time. It's a way to make sure your biggest financial commitment doesn't become a burden to your family if you're no longer around to take care of it. Read our full guide on why mortgage insurance is worth it.
Who can apply for Scotia Bank mortgage insurance?
To be eligible for Scotia Mortgage Protection, you must meet the following criteria:
Basic requirements:
- A resident of Canada: You must be a legal resident of Canada to apply.
- Age: You must be between 18 and 64 years old at the time of application. There are some exceptions for life insurance coverage if you are refinancing an existing mortgage or obtaining a new mortgage within 90 days of paying off an existing insured mortgage.
- Mortgage: You must be a borrower, co-borrower, or guarantor on an eligible Scotiabank Mortgage account that is in good standing. This means your mortgage payments are up-to-date and the account is not restricted in any way.
- Number of insured borrowers: A maximum of two people per eligible mortgage can have coverage.
Additional requirements for specific coverages:
- Disability and Job Loss Coverage: To be eligible for Disability or Job Loss coverage, you must also be actively working at the time of application. Job Loss coverage requires Disability coverage to be purchased as well.
- Critical Illness coverage: The specific critical illnesses covered may vary depending on the policy you choose. You may be required to answer health questions to qualify for this coverage.
But how is it different from life insurance?
Mortgage life insurance specifically pays off your mortgage if you pass away, with the lender as the beneficiary, not your family. Traditional life insurance gives a payout to your chosen beneficiaries, who can use the funds for any purpose. The focus of mortgage life insurance is solely on settling your mortgage debt and ensuring your home's security for your loved ones. If you want to see which is the right choice for you, read our guide on Mortgage insurance vs life insurance: What's right for me?
How much does Scotia Bank mortgage insurance cost?
The calculation of your monthly premium is determined by your age and the mortgage amount at the time of application. Generally, the younger you are, the lower your premium.
- For mortgages surpassing $350,000, discounts apply to life and/or critical illness premiums for the amount exceeding $350,000.
- Additionally, you could qualify for an extra discount of up to 20% on your premiums if you, and/or another borrower on the mortgage account, are insured for two or more insurance coverages on the same mortgage account.
To give you a rough idea, here are some general estimates of the cost of Scotia Mortgage’s Disability Insurance:
| Age | Premium Rate for Each Insured |
|---|---|
| 18-29 | $1.48 |
| 30-35 | $1.98 |
| 36-40 | $2.48 |
| 41-45 | $2.98 |
| 46-50 | $3.53 |
| 51-55 | $4.03 |
| 56-60 | $4.98 |
| 61-64 | $5.98 |
| 65-69 | $6.93 |
There are varying rates for different insurance types. Check out this product booklet to know the rates for Scotia’s life and other insurances.
Here’s what the cost would look like for a 44-year-old individual with the following coverage:
- Mortgage balance: 400,000
- Mortgage payment: 2,000
- Insurance coverage: Life Protection + Critical Illness Protection + Disability Protection + Job Loss Protection
- Premium: $366/month + applicable taxes
Use our comparator to get personalized quotes based on your age and other factors. Explore multiple options by adjusting your preferences and get instant quotes for free.
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What does Scotia mortgage insurance not cover?
Upon enrollment, you will receive a Certificate of Insurance containing comprehensive information about your coverage, encompassing all restrictions and exclusions.
Certain key conditions, exclusions, limitations, and waiting periods apply to Scotiabank’s mortgage insurance.
These include, but are not limited to:
- No benefit is provided if death results directly or indirectly from intentionally self-inflicted injury.
- In Critical Illness insurance, the benefit is not payable if cancer is diagnosed within 90 days of the Effective Date of coverage.
- For Critical Illness insurance, the benefit is not payable if death occurs within 30 days after the diagnosis of a Critical illness or within 30 days after undergoing surgery.
- In Disability and Job Loss insurance, there is a 60-day qualifying period during which no benefits are disbursed.
How can you make a Scotia bank mortgage insurance claim?
Follow these steps to claim Scotiabank’s mortgage insurance:
- Dial their toll-free number at 1-855-753-4272, available from 8 am to 8 pm (EST) on Monday to Friday. Have your Scotia Card number or account number ready.
- Upon confirmation of your enrollment, your customer service representative will dispatch a claims package for completion. You will receive the package either electronically or by mail.
- Submit the duly completed forms along with any required supporting documents to Scotiabank using the contact details provided on the claim forms.
Following the assessment, Scotiabank will communicate the decision to you in writing.
Is there a Scotiabank mortgage insurance calculator?
Yes! The Scotiabank mortgage insurance calculator is an online tool that allows you to estimate the monthly premium you would pay for Scotia Mortgage Protection based on your specific circumstances.
It's a way to get a quick and personalized idea of the cost before speaking with a mortgage advisor. Here’s how you can use it:
- Visit the Scotiabank Mortgage Insurance Premium Calculator webpage.
- Input your details including:
- Mortgage balance
- Mortgage Payment
- Date of birth
- Type of coverage desired (life, critical illness, disability or job loss)
- Smoking status
- You will see a personalized estimate of your monthly premium.
We recommend you compare premiums from multiple providers before settling on Scotia bank mortgage protection. You can do it right here using our free comparator below.
Compare mortgage life insurance in seconds
How to cancel Scotiabank mortgage insurance?
You have the option to cancel your coverage at any time. If the cancellation occurs within 30 days of the coverage effective date, a full refund of any premium paid will be provided.
For assistance with the cancellation process, you can call 1-855-753-4272 between 8 am and 8 pm (EST) from Monday to Friday.
