Line of Credit Insurance
Helps you meet your payment obligations on your line of credit in the event of death or disability.
With Line of Credit Insurance, you get:
- Coverage that allows you to make your line of credit payments in the event of death or disability
- A choice of 2 coverages: life insurance and disability insurance
- Disability benefits that can be paid for up to 60 months
- Non-taxable benefits that aren’t reduced by any amounts received from other private or public plans
- Free access to certain telephone assistance services offered under the Guide, Support and Protect Program:
Versatile Line of Credit holders: see Loan Insurance – Versatile Line of Credit for the portion of Loan Insurance that applies specifically to this type of financing
- Persons eligible: borrowers, their spouses or guarantors
- Life insurance: must be under age 70
- Disability insurance: must be under age 65 and already enrolled in life insurance
Eligibility is determined on the basis of a few questions asked when applying for the line of credit. Depending on the answers, you’ll find out right away if you’re eligible, or whether an insurability report needs to be submitted.
In the event of death, the sum insured indicated on the insurance application is paid off. This amount cannot be less than $10,000 or exceed the amount of the line of credit (maximum $10,000,000 [ 1 ] per participant)
In the event of disability, the monthly amount indicated on the insurance application is paid off. This amount can be up to 3% of the life insurance amount chosen (maximum of $7,500 [ 1 ] per month, per participant)
- For all Line of Credit Insurance or Loan Insurance policies issued by the insurer.
Premiums are calculated based on the:
- coverages selected
- number of insureds, their age and sex
- sum insured
- smoking habits
The monthly premium is automatically withdrawn from your account.