Top Questions and Concerns About Layoff Insurance


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People Have Questions About Layoff Insurance

It's's totally natural. We did too. In fact, it's such a new product that we're still learning about it ourselves.

Sometimes people have a natural aversion to new things, and that comes across in the form of naysaying or skepticism, such as this:

Oh yes cause insurance companies are there to help not profit..pffft

Well, actually, we think that insurance companies profit because they help.

This one is a common question:

Isn't that what EI is for?

Well, yes, and no. You see, EI is capped and doesn't provide enough coverage for most layoff insurance can make your mortgage payments for you and you can use the EI benefits for other things. Also, because this is an insurance product that pays your mortgage, it doesn't reduce or cut into your EI benefits.

Why only up to age 63?

Mostly because Layoff Insurance is a Disability Insurance product that includes job-loss coverage. It's complicated, but the way we understand it is that there's no such thing as a class of insurance in Canada called Layoff Insurance, so for regulatory reasons this coverage is added to a Life or Disability policy. If you're older than 63 then I guess the risk of disability is too high for the insurance company to make it work.

Can I get this after I've been laid off?

Sadly no...much like you can't get car insurance after you wrap your car around a pole, or disability insurance after your arm gets cut off. Sort of a "pre-existing condition" so to speak.

The insurance company is just scamming people so they can get rich in these hard times.

We're Albertans too and we have friends and family affected by the slowdown. The goal is to help - and as we've mentioned before, we got the idea from a client who asked for it. We're happy to provide something that can help people avoid losing their home when they're going through an already difficult time. At the end of the day, we're in the "helping people own a home business" and not the "watch them lose their home because the economy tanked and it wasn't their fault business".

My Radio Interview About Layoff Insurance

Here's the audio clip from my interview with CBC Radio in Calgary on this very subject. I hope it helps answer some of your questions. Of course, if it doesn't, please feel free to contact us or visit our page on Layoff Insurance to learn more about it.

President of First Foundation Residential Mortgages and First Foundation Insurance. Live in Edmonton but cheer for the Riders. I have lots of kids. Follow me on Twitter @gordmccallum

Learn more about Gordon McCallum