Credit Security Plan*
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Click here for our Mortgage
Life Insurance Calculator!
For most of us, buying a home is a major financial commitment. It's also the
one decision that has the greatest effect on the security of your family.
When a loved one passes away, the last thing family members should have to
worry about is whether they can keep their home.
The First National Credit Security Plan is
specifically designed to fit your mortgage and will help ensure your family's
security if something were to happen to you. The Plan will cover the amount
owing on your mortgage (up to $1,000,000) and provide your family with a mortgage-free
home. You'll have peace of mind knowing your family won't have to give up
their home if you're no longer there to take care of it.
First National's mortgage customers enjoy the benefit of affordable premiums because they are calculated based on low group rates. Your premium is set at the time you apply for insurance and does not increase because you get older.
And that's not all. Since the plan has been designed so that your insurance will always match the balance owing on your mortgage, you pay for exactly the amount of coverage that you need - no more, no less.
No matter which mortgage payment frequency you choose, your premiums will
be conveniently collected from your bank account along with your mortgage
payment. First National takes care of forwarding your premium on to the insurer
so that you never have to bother with paying an extra bill.
Let’s assume you have a $120,000 mortgage and you are 28 years old. You simply
divide the $120,000 by 1,000 and multiply the answer by the premium rate for
your age group as shown in the chart. In this case, your monthly premium would
be $11.76.
Age at Entry**
(age on funding date) |
Single |
Joint |
| 18-30 |
0.098 |
0.142 |
| 31-35 |
0.133 |
0.189 |
| 36-40 |
0.218 |
0.305 |
| 41-45 |
0.324 |
0.453 |
| 46-50 |
0.455 |
0.637 |
| 51-55 |
0.623 |
0.872 |
| 56-60 |
0.872 |
1.221 |
| 61-64 |
1.254 |
1.755 |
Add Applicable Taxes.
** Applications are accepted up to age 64.
Insurance continues until your 70th birthday. |
Premium Rate
from chart |
|
Mortgage Balance
divided by 1000 |
|
Monthly Premium |
| $0.098 |
x |
120 |
= |
$11.76 |
Divide the initial mortgage balance by 1000 and multiply this number by the joint life rate associated with the age of the older borrower in the rate table.
If you are under age 65, and a resident of Canada, you can apply for coverage†
of your full mortgage balance, up to a maximum of $1,000,000. The mortgage
co-borrower(s) are also eligible to apply. At the time you arrange your mortgage,
ask your Mortgage Representative about First National Credit Security Plan.
If you’re already a First National customer, please give us a call and we’ll
send you an enrollment kit.
No one likes to think about the worst that may happen, but in one simple step
you can protect your biggest asset and your loved ones’ financial security.
For your family’s financial security, protect your purchase of a lifetime.
Apply today for the First National Credit Security Plan for Mortgages.
The Manufacturers Life Insurance Company (Manulife Financial) is one of Canada’s largest life insurance companies and is based in Canada.
"Do I have to go for a medical?"
No, that’s one of the reasons why Credit Security Plan is such a convenient
choice. All you have to do is reply to 3 short questions about your health.
After reviewing your answers, the insurer may request additional information
or tests in order to get a complete picture of any medical condition you may
have but this generally occurs in a low percentage of cases.
"When will my coverage begin?"
If you answer "no" to all the health questions, and your mortgage is less than $300,000, there’s absolutely nothing
more to it. Your coverage will automatically start on your funding date or
notification of insurance approval (or the day you complete the application
if you are applying in respect of an already-existing mortgage).
If you answer "yes" to any of the health questions, that certainly does not
mean you won’t qualify. However, the insurer will first have to review and
approve your application before coverage can begin.
"Do I have to re-apply for insurance when I renew
my mortgage?"
No, you only have to apply once. You do not have to apply again when you renew
your mortgage unless you extend your amortization period or take out additional
mortgage funds.
"If I do need additional coverage (e.g. when I move
to a new home and increase my mortgage) what do I have to do?"
You simply apply by answering the same 3 medical questions. If your health
situation has changed and you do not qualify for additional insurance, your
existing coverage will NOT be affected. You will continue to be covered based
on the original mortgage amount. For example, let’s say your current mortgage
balance is $120,000 and then you increased your mortgage to $150,000 but did
not qualify for the increased insurance amount. Your new mortgage would still
be 80% insured (equivalent to $120,000 divided by $150,000).
"What are the exclusions?"
No insurance benefit will be paid if death is caused either directly or indirectly:
- By a pre-existing condition, where that condition causes death to occur during the first 12 months of coverage;
- By suicide occurring within the first 2 years of coverage;
- By a medical condition resulting from sustained alcohol abuse or the use of any drug that is not in strict accordance with a prescription from your doctor;
- By participating in any of the following high-risk activities: operating an aircraft; sky-diving, hang gliding, parachuting, scuba diving, or committing or attempting to commit or provoking a criminal offence or assault;
- From operation of a motor vehicle or vessel when the concentration of alcohol in your blood exceeds 80 milligrams of alcohol in 100 millilitres of blood; or
- By declared or undeclared war, or any act of war or insurrection.
"What do you mean by pre-existing condition?"
Pre-existing condition means a condition, illness, injury or symptom diagnosed or undiagnosed for which treatment or advice was received in the twelve months before your insurance began. Treatment or advice means consultation and/or care and/or service provided by a licensed medical practitioner. This includes but is not limited to diagnostic measures and prescribed drugs.
"How do I contact the insurer?"
Credit Security Plan Inc.
P.O. Box 1103, Station B
Willowdale, ON M2K 3A2
1.877.511.4576
For more information contact a Mortgage Specialist or call First National at 416.593.1100 or toll-free at 1.888.670.2111.
This information sheet is designed to outline the benefits for which you are eligible and does not create or confer any contractual or other rights. All rights with respect to the benefits of an insured borrower will be governed solely by the Group Master Policy issued by The Manufacturers Life Insurance Company.
The Personal Information about you that is contained in your Insurance Application/Waiver ("Application"), and other information about you or your mortgage that is relevant to the Application, and/or the administration of your insurance (collectively "Personal Information"), is required by the Insurer, and its administrator and agents to assess your Application and to administer your financial services file relating to the insurance that you may purchase and any insurance claims that you may make, and to contact you from time to time about Credit Security Plan coverage and related financial services. By signing an Application, you grant your consent to the collection, use, retention and disclosure of your Personal Information for the purposes shown above by and to these entities, their successors, and to any other person you may later authorize or as authorized by law. You acknowledge that, if you do not agree that your personal information may be used for the purposes listed above then it may not be possible to accept your Application. Your file is secured in the offices of the Insurer's administrator. You may review your Personal Information at anytime, and make any corrections by writing to "Credit Security Plan" at the address shown below.
First National Financial LP
Head Office
100 University Avenue
Suite 700, North Tower
Toronto, Ontario
Canada M5J 1V6
Telephone: 416.593.1100
Fax: 416.593.8900
Toll Free: 800.465.0039
Toll Free Fax: 800.229.0612
*Credit Security Plan is not available through this web site to customers in British Columbia or Quebec. For information about Credit Security Plan, Quebec customers should refer to the Distribution Guide available from their lender, First National Financial LP.
†You will be advised in writing if you have been declined for insurance or additional information is required to underwrite your application.