Loan Insurance – Versatile Line of Credit

Protect your projects and your loved ones.

Is this insurance for you?

  • You have a versatile Line of Credit.
  • You are looking for protection that will allow you to meet the financial obligations related to your versatile line of credit in the event of death or a disability.

Persons eligible : borrowers or guarantors

Life insurance : must be under 70

Disability insurance : must be under 65 and already enrolled in life insurance

Eligibility : You need to answer only a few questions to determine your eligibility



  • Insurance selections that apply automatically to all amounts borrowed; no need to take out new insurance to protect new loans on your Versatile Line of Credit.

Life insurance

  • In the event of death: the insured balance of the line of credit and linked loans are paid off, up to a maximum of $10,000,000* per participant

Disability insurance

  • In the event of disability, the insured portion of the instalment payments for the linked loans is paid off, as is the insured portion of the monthly payments, over a 10-year period, up to $10,000[ 1 ] per month, per participant

* For all Loan Insurance or Line of Credit Insurance policies issued by the insurer.


  • The premium is included in the instalment payments in the form of an additional interest rate that varies based on the:
    • coverage selected
    • insured loan percentage selected
    • number of insured, their age and sex (life insurance)
    • Versatile Line of Credit’s initial authorized limit (life insurance)
    • linked loan amortization period (disability insurance) – for the line of credit portion, the premium is always calculated on a fixed 10-year amortization period
    • smoking habits
  • By taking out Loan Insurance – Versatile Line of Credit, you agree to a higher interest rate on your loan. The interest rate on your loan, therefore, consists of 2 rates combined: the basic interest rate charged by your financial institution plus an additional interest rate for the insurance.

This makes it possible to calculate your premium based on the loan balance owing. Generally, for the linked loans, the premium decreases as the loan balance decreases, since it automatically reflects the principal payments made. For the line of credit, the premium fluctuates based on the amount borrowed. As a result, you pay a fair premium for the real risk that your loan represents.

  • “Double coverage” advantage. You can get a discount on your life insurance if you enrol in life insurance plus disability insurance


  • Premium payments are included in the instalment payments and the premium is automatically adjusted based on the loan balance so it’s always proportional to the insured risk


  • Benefits that are paid for the entire duration of the total disability or until the debt is completely paid off
  • Non-taxable benefits that aren’t reduced by any amounts received from other private or public plans

Assistance services

  • Accès gratuit à certains services d’assistance téléphonique du Guide, Protect and Support Program :
    • Psychological Assistance
    • Convalescence Assistance – case management
    • Legal Assistance


More information

Want to find out more?

Read the Loan Insurance Participant’s Guide (PDF).

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