Ontario man devastated to learn $150,000 line of credit isn't insured after wife dies

An Ontario man found out that a line of credit he thought was insured actually isn't after his wife of 50 years died.

An Ontario man found out that a line of credit he thought was insured actually isn't after his wife of 50 years died.

"When I found out I wasn’t insured, I was just devastated," said John Richards of Uxbridge, Ont.

Richards said he and his wife Sandra wanted to take out a Home Equity Line of Credit (HELOC) for $150,000, but they said they also wanted to have life insurance on the loan in case anything happened.

It’s estimated about eight million Canadians have a HELOC as a way to tap into the capital of their homes and access money for renovations, trips or general expenses.

Many people also choose to insure their HELOC with life or critical illness insurance with the same lender they have the line of credit with.

In 2018, Richards said, his wife was 69 years old when she signed for a $150,000 HELOC and he said they both thought the line of credit came with life insurance.