Worried About Losing Your Job? How Job Loss Insurance Can Help


“So… do you guys sell layoff insurance?”

That was the question that really caught me off guard. I thought I had heard them all before: questions about down payments, about how much they qualified for, about whether or not they should choose a fixed rate or a variable rate. But layoff insurance? I had never heard of it.

In fact, I was stunned. Not only had I never heard of it—I was sure that we didn’t sell it, and I was surprised to hear such a product even existed. Maybe I shouldn’t have been, because, since entering the insurance market a few years ago, we’ve sold everything from construction insurance to insurance for nuclear non-destructive testing companies, high-end yo-yo manufacturers, liability insurance for the lady who sells meat pie at the farmer’s market, and hole-in-one insurance for golf tournaments. But layoff insurance? What is that anyway?

“Do you guys sell layoff insurance? Some of the guys at the shop were talking about it, so I thought I’d ask.”

My client heard about layoff insurance at work

Heck, he wasn’t even in my office to buy insurance. He was getting a mortgage! Of course, we talked about the usual, life insurance, disability insurance, and home insurance options he needed to consider as part of the mortgage process...but then he asked the question, “Do you guys sell layoff insurance?” He continued, “Some of the guys at the shop were talking about it, so I thought I’d ask.”

“Umm, ahh, hmm…,” I stammered. “I’ll have to check with Tyler and let you know.”

So, I asked Tyler. “Nope. What is it?” he said.

Layoff Insurance pays your mortgage if you get laid off

Lots of people in Alberta are getting laid off around now, and even more people are nervous about it. Oil and gas prices are low. The new governments have increased taxes. Mortgage and household debt levels are high. House prices are starting to fall.

Losing your job is bad enough… but losing your home due to layoff would be devastating. Unfortunately, according to the Canadian Association of Accredited Mortgage Professionals, job loss is one of the most common reasons why people end up defaulting on their mortgage.

After eight months or so, we finally have job loss insurance

Once we thought about it we figured that this is something that Albertans could really use right now.

So after eight months of digging, searching, hunting, and negotiating, we finally have Layoff Insurance. The same day that Tyler informed me we had a contract, I called my mortgage client who had asked about it and asked him if he still wanted it. “Yup!” he said. So the next day he and his wife came in and each bought a policy.

“That was easy,” I said to Tyler, half jokingly. He just rolled his eyes.

But seriously, if you can’t sell layoff insurance in Alberta in 2016....

So, we have the product. It’s great. It can:

  • Supplement your EI payments by making your mortgage payment for you for up to six months.
  • It’ll help you to avoid losing your home, so you can ride out the storm.
  • It’s relatively inexpensive and can provide a lot of peace of mind.
  • It’s super easy to apply for and the approvals are quick.
  • There’s no long-term contract and you can cancel at anytime.

Just think about it. Is EI going to cover all of your expenses? If you got laid off would you be at risk of missing your mortgage payments?

Unfortunately the number one cause of home foreclosure is loss of employment.

This is probably not the time to leave it to chance, so learn more about layoff insurance and give us a call. We can get you insured quickly and easily. Anywhere in Alberta.

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