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Protect What You've Put Into Your Business
Your company provides a secure lifestyle for your family, business partners and employees, so you can't afford to put it at risk. Business Loan Insurance Plan is debt protection for what if life events and contributes to your financial security by helping you plan for the future.
Apply Now or Request Information
How it Can Help
If a key employeeDisclaimer1, partner or owner passes away, develops a critical illness or if an owner becomes disabled due to illness or injury,— Business Loan Insurance Plan may make payments to help pay off or reduce the balance of an insured loan(s) or operating line(s) to:
- Allow normal business activities to continue
- Reduce potential issues with cash flow
- Preserve your personal insurance, investments and other assets
Coverage Options and Key Benefits
Business Loan Insurance Plan lets you choose from three plan options:
- Critical illness coverage with life insurance
- Disability coverage with life insurance
- Life insurance only
(limitations and exclusions apply. Refer to Legal Disclaimers below)
Critical Illness Coverage
- Offers coverage should an owner, a guarantor, or key employee* be diagnosed with a critical illness (heart attack, life threatening cancer or stroke) after coverage comes into effect, as outlined in the terms and conditions
- Provides up to $500,000 per insured person to help pay off outstanding loans, subject to claim approval
- Whether or not the insured person can perform his or her regular job duties is not a condition for benefit payment
Disability Coverage
- Provides up to $7,000 per month towards loan payments, subject to claim approval, if a disability prevents an owner from working
- Benefits can be paid for a maximum of 24 months per claim
- Lifetime maximum of 48 months of disability benefit payments per insured person
Life Insurance
- Offers coverage should an owner, a guarantor, or key employee* pass away after coverage comes into effect
- Provides up to $1,000,000 per insured person to help pay off outstanding loans, subject to claim approval
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Accidental dismemberment coverage is also included at no additional cost:
- May pay up to $25,000 against the outstanding balance of an insured loan if an insured person suffers an accidental injury resulting in the loss of sight in one eye or a single dismemberment
- Benefit may double to $50,000 in the event the insured person suffers an accidental injury resulting in the loss of sight in both eyes or a multiple dismemberment
* If the business is domiciled in Quebec, only an owner of the business or a guarantor of the business loan is eligible to apply.
Explore your coverage options.
Answer a few quick questions to see the type of coverage you might want to consider.
Try the Business Credit Protection SelectorOpens in new window
Eligibility
To qualify for and remain eligible for coverage, your business must:
- Be domiciled and operate in Canada
- Be a legal entity operating a business/farm that is indebted to RBC Royal Bank under a loan
The following RBC Royal Bank business loans are eligible for coverage (all loans must be denominated in Canadian dollars):
- Operating loans and operating lines of credit
- Term and demand loans
- Canada small business financing loans
- Commercial mortgages less than $1,000,000
- RoyFarm mortgages
To qualify and remain eligible for coverage, the individual for whom insurance is requested (the proposed insured), must answer the basic insurability questions and must meet these requirements:
Critical Illness Coverage with Life
Up to 25 owners, guarantors or key employees* may be insured for the plan's critical illness coverage
- 18 years of age but less than 60 years of age on the date of the application
- A Canadian resident
- Approved for and maintain a minimum of $25,000 in life insurance coverage under the plan
Disability Coverage with Life
Up to 3 business owners may be insured for the plan's disability coverage
- 18 years of age but less than 65 years of age on the date of the application
- A Canadian resident
- Actively working for the business at least 20 hours a week on the date of application
- Approved for and maintain a minimum of $25,000 in life insurance coverage under the plan
Life Insurance
Up to 25 owners, guarantors or key employees* may be insured for the plan's life coverage
- 18 years of age but less than 65 years of age on the date of the application
- A Canadian resident
* If the business is domiciled in Quebec, only an owner of the business or a guarantor of the business loan is eligible to apply.
Calculate the premiums for your loan
See how affordable it is to protect your loan(s) with Business Loan Insurance Plan.
Try the Calculator Opens in new windowFrequently Asked Questions
Please talk to your account manager or your business advisor— we can explain the options that are available to you so that you can determine which is best for you and your business.
Consider what may happen if your family had to liquidate all or part of your savings suddenly and in a down market—or if they couldn’t use your life insurance to pay off your home or keep up with living expenses. The Business Loan Insurance Plan can help protect the insured business debt (paid either partially or in full) so that your personal insurance, assets, savings and home equity can remain intact for the benefit of your loved ones.
Each person applying for life insurance coverage must answer one health question in the application. If you are applying for critical illness or disability coverage, you will also need to answer an additional health question. If you answer "yes" to either of the two questions in the application, a medical phone interview with the insurer will be scheduled.
A medical phone interview is also required when applying for a total of $300,000 or less of combined Life and Critical Illness insurance.
About the medical phone interviewOpens PDF in new windowNo, if you enroll in Business Loan Insurance Plan now and take on another eligible loan later, that balance may automatically be covered up to the insured amount you selected when you applied the first time.
Yes. Business Loan Insurance Plan automatically tracks your term loan or operating line and bases your premiums on your daily outstanding balances. As a result, you only pay based on the amount of coverage you selected and the credit outstanding balance. And, you pay nothing when the outstanding balance of your loan or operating line is zero.
Insurance premiums are calculated based on the insured person's current age, sex and smoking status (at the time the insured person applies for coverage), and the daily outstanding balance on all insured loans.
CalculateOpens in new window what it would cost to insure your loan(s).
To file a claim, please call 1-800-769-25231-800-769-2523 as soon as possible as claims must be submitted within a certain timeframe.
We'll be able to give you faster service if you have the following items on-hand when you call:
- Business client card number
- Branch transit and loan account number(s)
- Client card number for the insured person
You may also need to provide:
- The names of doctors or hospitals that were consulted prior to the date of the claim
- A copy of the police/fire and/or coroner's reports if an insured person has passed away due to an accident
Alternatively, you may download, complete and send us the appropriate claim form below:
Life Benefit Claim FormOpens PDF in new window
Critical Illness Benefit Claim FormOpens PDF in new window
Disability Benefit Claim FormOpens PDF in new window
Timing is important when submitting a claim, in order to ensure the claim can be paid. Refer to the Terms and Conditions for details. We’re here to help you at 1-800-769-2523 with any questions or if you need assistance.
Important timelines to consider:
- Critical Illness claims must be submitted within 180 days of the date of diagnosis or surgery
- Disability insurance claims must be submitted within 150 days of the date of disability
- Life insurance claims should be submitted within one year of the date of death, except for residents of Quebec, in which case life insurance claims should be submitted as soon as possible
- Accidental dismemberment claims must be submitted within 90 days of the loss
Apply Now or Request Information
Contact your Business Advisor or RBC Account Manager:
