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Loan InsuranceBuying a dream home or new vehicle or taking out a line of credit involves a substantial financial obligation. Do you have the right coverage? Have you been offered a debt coverage when you applied for mortgage, line of credit or credit card?
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Eligibility
You are eligible if you:
Only loans taken out with recognized financial institutions or organizations are eligible for Loan Insurance:
Main coverage
Your contract must include the following coverage:
Disability Insurance. This coverage provides for:
Additional coverage:
You benefit from the following additional coverage, at no extra cost:
Loan Disability Insurance offers the following optional benefit:
You may also purchase additional coverage to expand your protection:
Benefits
Loan Insurance offers unique assets, such as:
** “Total disability” means the state of incapacity resulting, directly and independently of any other cause, from an illness that began or from an accident that occurred while you are covered under appropriate insurance coverage and under the regular care of a physician according to the frequency required for that disability and which prevents you:
You are eligible if you:
- are between the ages of 18 and 59 inclusively;
- work:
- at least 21 hours per week on a regular and continuous basis, or
- at least eight months per year totalling 1,050 hours per year;
- meet the Insurer’s underwriting criteria;
- are a Canadian citizen or have lived in Canada for at least six months and meet certain criteria.
Only loans taken out with recognized financial institutions or organizations are eligible for Loan Insurance:
- Mortgage loans
- Loans for cars, boats or motorcycles (lease or purchase)
- Conventional or mortgage-backed lines of credit
- Leverage loans for investment purposes
- Credit cards
- Renovation loans
- Personal loans
- Student loans
- Any other fixed-term loan with regular payments
Main coverage
Your contract must include the following coverage:
Disability Insurance. This coverage provides for:
- Protection in the event of total disability **resulting from accident or illness ;
- Payment of a monthly benefit ranging from $300 to $5,000 ;
- A benefit period of 2 years, 5 years or up to age 65 ;
- A waiting period of 30 days, 60 days or 90 days ;
- In the event of day surgery or hospitalization for more than 18 hours, benefits are payable from the first day ;
- If you add the “+” option to the waiting period, you will receive benefits from the first day in the event of an accident ;
- Risk classified based on your occupation.
Additional coverage:
You benefit from the following additional coverage, at no extra cost:
- Waiver of premiums: releases you from the obligation to pay insurance premiums while totally disabled
- Occupational class enhancement: based on certain criteria, it may be possible to benefit from an enhancement in occupational class, which lowers premiums
- Maintenance of Coverage when Remunerative Work ceases: if you lose your job, take a parental leave or stop working temporarily, but have not retired, your disability insurance will remain in force for a maximum of 12 months
- Guaranteed renewable contract from year to year until your 65th birthday
- Disability Insurance in the event of Accident can be extended up to age 75, without evidence of insurability
- Reinstatement of Benefits: if you decide to reduce your coverage, you may choose to reinstate your monthly benefits up to their initial level within two years of the coverage reduction by filling out a Short Declaration of Health stipulating that your health has not changed.
Loan Disability Insurance offers the following optional benefit:
- Extension of the Disability Definition: your “regular occupation” definition may be covered for 60 months or up to age 65
- Return of Disability Insurance Premiums: at ages 55, 60 or 65, you will be refunded 50% of all premiums paid under the Disability Insurance coverage, including the portion applicable to the Return of Premiums benefit, less any claims paid under the Disability Insurance coverage
You may also purchase additional coverage to expand your protection:
- Life Insurance (term, up to age 65)
- Critical Illness Insurance
Benefits
- Coverage of up to 125% of the mortgage
- Coverage not only for the interest on your line of credit, but also for a portion of its capital
- Guaranteed renewal
- Premiums by consecutive 5-year periods or up to age 65
- Premiums are based on the worker’s occupation
Loan Insurance offers unique assets, such as:
- A single contract for you and your spouse who is with or without remunerative work
- A single contract for all your loans, thus reducing policy fees
- A contract separate from your creditors: benefits are paid directly to you or your beneficiary
** “Total disability” means the state of incapacity resulting, directly and independently of any other cause, from an illness that began or from an accident that occurred while you are covered under appropriate insurance coverage and under the regular care of a physician according to the frequency required for that disability and which prevents you:
- during the first twenty-four (24) months, from performing the duties of your regular occupation; and
- after that period, from performing any remunerative work for which you would be qualified by virtue of your education, training or experience.