Loan Insurance – Business

Coverage

Loan Insurance offers you 2 types of coverage:

• Life Insurance. In the event of death, the Insurer pays off the insured portion of the net debt, up to $10 million* per participant.
• Disability Insurance. In the event of total disability, the Insurer pays the insured portion of payments, up to $7,500* a month per insured.

Cost

When you take out Loan Insurance, you agree to an increased interest rate on your loan, or to pay the basic interest rate charged by your financial institution plus an additional interest rate for insurance.

The instalment premium is calculated based on the loan balance owing. Generally, the premium decreases as the loan balance decreases since it automatically reflects the principal payments made. As a result, you pay a fair premium for the real risk that your loan represents.

Benefits

• Generally not taxable or reduced by amounts received from other insurance plans.

Eligibility

No matter what your type of business, its size or the business sector in which it operates, you are eligible for Loan Insurance if you are:

• the borrower, his/her spouse or his/her guarantor
• a member, shareholder, director, owner of the borrowing corporate body or his/her spouse or the guarantor of this corporate body

Age of eligibility

• Life Insurance: you must be under 70 years of age.
• Disability Insurance: you must be under 65 years of age and already have life insurance.

Health questions

In most cases, eligibility for Loan Insurance is determined on the basis of a few medical questions asked when you apply for the loan. Based on your answers, you may be required to submit an insurability report.

Assistance services

• Complimentary access to some of the following GPS Program assistance services:
  • Psychological Assistance
  • Convalescence Assistance
  • Estate Settlement Assistance
  • Legal Assistance