What is Loan Insurance?
Loan Insurance
Why get it?
Protect your loved ones
Lighten their financial load by getting insurance that helps pay off your loan in the event of your death.
Maintain a good credit report
Get help to continue to pay off your loan if you develop a health problem.
Get support
Get support from healthcare and legal professionals during difficult times.
Coverages offered
Life insurance
In the event of death, this insurance covers the balance of your loan, based on the percentage you chose (between 10% and 100%).
Maximum payable: $10 million
Disability insurance
If you become disabled, this insurance covers your regular payments until your loan is paid off or until you turn 70, based on the percentage you chose. If you become disabled due to cancer, you can start receiving benefits from the day your disability began.
You can insure between 10% to 100% of your loan as long as this percentage isn’t higher than your life insurance percentage.
Maximum payable: $10,000 per month per insured person
Benefits are tax-free and not affected by benefits paid by other private or public plans.
Eligibility
To be eligible, you have to be:
- A Canadian resident
- The borrower or the guarantor for the borrower
- Age 69 or younger (for life insurance)
- Age 64 or younger and enrolled in life insurance (for disability insurance)
Cost
Loan Insurance
The premium is calculated based on an additional interest rate that's applied to your loan. It varies depending on the:
- Coverages purchased
- Insurance percentages selected
- Number of people insured, their age, sex and whether they smoke or not
- Amount of the loan
As you pay off your loan, your insurance premium goes down, so you always pay a fair price for your insurance.
Loan Insurance – Versatile Line of Credit
The premium:
- Is calculated only on the amount of credit you use
- Is calculated on a 10-year amortization period
- Is included in your installment payments
- Varies based on the authorized limit for the Versatile Line of Credit
You're covered right away if you borrow against your Versatile Line of Credit in the future.
Other savings and discounts
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We give you a discount on life insurance when you also take out disability insurance.
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We encourage healthy habits for our members and clients by providing a reduced rate for non-smokers.
Assistance services
Need help? Call 1-877-477-3033 Phone number for psychological, legal or convalescence assistance. This link opens your phone app. to get telephone assistance services.
Psychological assistance
Benefit from a set number of confidential sessions with a mental health professional to help you during difficult times.
Legal assistance
Discuss with a lawyer or notary to get information on your rights and obligations and see what recourses are available to you in case of legal trouble. These professionals can also help you with liquidating a succession.
Convalescence assistance
Get help from a team of medical experts and assistance coordinators to help you find the information and providers you need to recover from an illness, accident or surgery.
What is the difference between life insurance and Loan Insurance?
- Individual life insurance pays out an amount to your beneficiaries in the event of your death.
- Loan Insurance helps to pays off your loan if you die before paying it off yourself.
Explore our other insurance options
Accident insurance
Get financial help to cover costs related to an accident.
Life insurance for ages 50 and over
Get lifetime coverage tailored to people ages 50 to 75. No medical exam needed.
Useful information
Policyholders who signed their insurance application before November 24, 2019 can view their documents on AccèsD.