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Loan Insurance

Buying 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?

Loan Insurance is a great solution that allows you to pay off all or part of your loan balance in the event of disability, death, or critical illness.

Eligibility

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.
Disclaimer
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Services
This information is provided for general information purposes only. It does not constitute professional advice and does not create a advisor-client relationship. Please consult  a Certified Financial Planner about your specific needs before taking any action.  insurance products and services are provided by Alia Turkunova-Rausch. 
Copyright © 2023 ATR . All rights reserved
Photo used under Creative Commons from StockMonkeys.com
  • HOME
    • About Alia
  • DIVORCE / MEDIATION
    • Cohabitation Agreements/Marriage Contracts
    • Divorce Options
    • Matrimonial Property
    • Child Support
    • Spousal Support
    • MEDIATION / CFDS
    • FAQ
  • Financial Services
    • Financial Planning
    • RESP
    • Life Insurance for "Visitors to Canada"
    • Travel Insurance
    • Loan Insurance
    • Mortgage Insurance vs Term
    • Health Spending Account >
      • What is Covered?
    • Videos
  • Commissioner For Oaths
  • Contact 403-830-6117
    • Disclaimer
  • RU
    • Страхование Жизни
    • Инвестиции
  • FEES