Bank of Nova Scotia today announced the launch of a new insurance product offering disability protection to mortgage clients across Canada.

Scotiabank says the launch makes it the first major Canadian financial institution with mortgage product offerings at three levels of personal protection, including loss of life and health crisis.

“Scotiabank is pleased to announce a new disability product that protects customers’ mortgages in the event of an unexpected disability,” said Robin Hibberd, executive vp, personal lending and insurance.

Scotiabank’s mortgage disability protection, which is underwritten by Sun Life, helps mortgage customers sidelined by disability due to injury or disease, sickness, mental illness and nervous disorder. It provides monthly benefits when a disability claim is approved. The benefit is a fixed amount based on the mortgage payment, including principal, interest and taxes, with a maximum monthly benefit of $3,500. Benefits cover a 24-month period per claim, or 48 months total in the lifetime of the insured.

Customers become eligible for mortgage disability protection when they apply for a mortgage. The premium is based on a customer’s age and mortgage payment. Pricing and other details are available at www.scotiainsurance.com.

Scotiabank’s loss of life protection will pay the outstanding balance of a mortgage if the insured dies. Health crisis protection pays the outstanding mortgage balance when certain illnesses strike.