MORTGAGE PROTECTION INSURANCE — WHY IT MATTERS
- johnathanmcquoid
- Jan 17
- 2 min read
Insurance is one of those things most people are unsure about. We’ve all been pitched extended warranties or add-ons that seem unnecessary.
But mortgage protection insurance is different — because it covers the biggest financial obligation most people ever take on.
Whether it’s covering your monthly mortgage payments or paying off the balance in the event of death, disability, or critical illness, it’s protection that can prevent a financial disaster.
Here’s what you need to know 👇
🏠 You will always be offered mortgage insurance when applying for a mortgage
As mortgage professionals, we are required to offer mortgage protection insurance to every client. Even if you choose to decline it, we still need a signed acknowledgment confirming it was offered.
Why?
Because if someone becomes injured or unable to work later, the insurer must confirm the client knowingly declined coverage.
🛡️ Is all mortgage insurance the same? Definitely not.
There are major differences between lender-provided mortgage insurance and independent mortgage protection insurance. Understanding the differences matters.
Here are the key points:
✔️ Independent coverage is portable
Your insurance stays with you even if you change lenders or refinance your mortgage.
✔️ Underwriting is done at the time of application
This means your health is confirmed upfront — not at claim time.
✔️ Coverage can include disability, critical illness, or life protection
Depending on the plan you choose.
🚫 What about mortgage insurance from the bank?
Bank-issued mortgage insurance has limitations many homeowners don’t realize:
• It often cannot be transferred if you switch lenders
• You may lose your coverage after years of paying premiums
• Health underwriting is usually done when you make a claim, not when you sign up
This means a claim could be denied later due to medical conditions that developed long after you started paying.
That risk is why many homeowners prefer independent mortgage protection.
🤝 You are not limited to one provider
If the standard mortgage protection plan isn’t the right fit for you, we can connect you with licensed insurance professionals who offer alternative coverage options.
There is no one-size-fits-all solution — but there is a right solution for your situation.
💡 The most important thing is simple:
Have some form of protection.
You don’t realize how valuable it is until the moment you need it — and by then, it’s too late to get it.
If you want to review your mortgage protection options or compare coverage types, message The Frontline Mortgage Group.
We’ll help you understand your choices and guide you toward the protection that makes the most sense for you and your family. 💬