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How LoanProtector Insurance Works
Choose life insurance only—or add critical illness or disability insurance for more protection.
Coverage Options:
Life Insurance
Pays off or reduces your outstanding insured RBC Royal Bank loan balance and the qualifying balance of insured lines of credit in the event of death.
Up to $500,000
Critical Illness Insurance
Pays off or reduces your outstanding insured RBC Royal Bank loan balance and the qualifying balance of insured lines of credit if you are diagnosed with a covered critical illness.
Up to $300,000
Disability Insurance
Maintains your regular loan payment(s) and pays 3% of the qualifying balance of your insured line of credit in the event of a disability.
Up to $3,000/month for up to 24 months
- Helps preserve your other insurance.
- Helps safeguard your savings for what they were intended.
- Life, critical illness and disability benefits are non-taxable and benefits do not have to be coordinated with other insurance plans. LoanProtector Insurance is underwritten by The Canada Life Assurance Company.
The Qualifying Balance Is Defined As:
For life insurance, the lesser of the outstanding balance as of the date of death or the average monthly balance for the 12 months prior to the month in which death occurred.
For critical illness insurance, the lesser of the outstanding balance as of the date of diagnosis or the average monthly balance for the 12 months prior to the month in which the diagnosis occurred.
For disability insurance, the lesser of the outstanding balance as of the date of disability or the average monthly balance for the 12 months prior to the month in which the disability occurred.
Do I need more coverage if I already have coverage through work?
If you lose your job, any group disability insurance coverage through your work may terminate, meaning you and your family could be left without coverage.
Typically, employers only provide coverage that amounts to 1 to 2 times your salary in the event of your death, and about two-thirds of your income if you are disabled and unable to work due to illness or injury.
- Would you be able to manage with increased expenses and a third less income?
- If you leave your job or become self-employed, you could lose your coverage
LoanProtector Insurance can help take care of your debt while allowing your existing employee coverage to take care of your family.
They could, but are those assets enough to cover your debts and look after your family's immediate and long-term needs? And what would happen if your family had to suddenly sell your assets in a down market to pay off your debts? LoanProtector Insurance can help keep your existing financial plan intact.
Although your RSP loan or line of credit may be small, it is an additional liability. For just cents a day, LoanProtector Insurance can help pay off or reduce your debt in the event of your death or diagnosis of a covered illness, or help take care of your payments if you are disabled and unable to work due to illness or injury.
It's true that term life insurance can provide for your family's future and may be an important part of your financial plan. But LoanProtector Insurance can be a quick, convenient and cost-effective way to help ensure your debts are looked after. Other features of LoanProtector Insurance are:
- Approval for coverage is usually automatic
- Offers you the protection of single or joint life, life and disability or life and critical illness coverage
For life insurance, you are eligible to apply if on the date of application you are:
- Either a borrower or co-borrower of an eligible RBC Royal Bank personal fixed or variable rate loan or Royal Credit Line(Opens modal window) (to a maximum of two persons); and
- Less than 70 years old
To apply for disability insurance, you must also:
- Have or be applying for LoanProtector life insurance coverage; and
- Be actively working(Opens modal window), on the date of application, in full-time employment, self-employment, or seasonal employment
To apply for critical illness insurance, you must also:
- Have or be applying for LoanProtector life insurance coverage; and
- Be less than 56 years old
Note: You cannot be insured for both critical illness and disability insurance at the same time on the same loan or line of credit.
If you have an existing RBC Royal Bank® personal fixed or variable rate loan or Royal Credit Line®, you can apply for LoanProtector Insurance by:
- Signing into RBC Online Banking, clicking on your loan or Royal Credit Line, reviewing your insurance coverage details, then following the steps outlined to apply. Apply Now
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Contacting the Insurance Service Centre at 1-800-769-2523 to enroll over the phone.
Clients in Alberta and Saskatchewan who wish to enrol by phone are required to call RBC Royal Bank at 1-800-769-2511. - Visiting your RBC Royal Bank branch, where you can talk to a Credit Specialist and complete a LoanProtector Insurance Application.
- You have the option of cancelling your insurance coverage at any time.
- If you cancel coverage within 30 days of being approved, you will receive a full refund of your premiums, if any have been collected
If you don't already have an RBC Royal Bank personal fixed or variable rate loan or Royal Credit Line, our Credit Specialists can help you select the borrowing option that is right for you. Whether you talk to them in person or on the phone, they will make it quick, easy and convenient for you to get the credit you need. You'll then be able to apply for LoanProtector Insurance.
Call 1-800-769-2511, 24 hours a day, 7 days a week
- Acceptance is usually automatic on the date you apply
- In most cases no medical examination is required
If your total insured loans and lines of credit limit (including what you are applying for) is $100,000 or less:
- You are NOT required to answer any health questions and coverage is automatically approved
If your total insured loans and lines of credit limit (including what you are applying for) exceeds $100,000:
- You must answer all applicable health questions
If you answer ‘NO’ to all of the applicable application health questions, then your application is accepted and the Insurer, Canada Life, does not require any more health information.
If you answer ‘YES’ to any of the applicable application health questions, you will be asked to provide additional information through a separate health assessment.
A health assessment allows the Insurer, Canada Life, to review your application for insurance in detail. The health assessment may include a telephone interview with a representative of the Insurer. Depending on the outcome, Canada Life may require you to complete a detailed health questionnaire or obtain a medical report from your current attending physician. In certain circumstances it may be necessary to undergo a paramedical examination and a blood/urine test.
If you are required to complete a health assessment, you'll receive written notice of the acceptance or decline of your application for insurance.
If you are an RBC Royal Bank Online Banking client, you'll receive automatic updates on the status of your application and can review these updates within your Online Banking Message Centre.
LoanProtector Insurance includes temporary coverage (for a maximum of 30 days), where a life Insurance benefit may be paid if you die as a result of an accidental injury while your application is being processed.
Loans
Rates are determined based on the age of the borrower on the date of the insurance application. Premiums are calculated based on your rate and your loan balance on the date your payment is due.
Royal Credit Line® Account
Rates are determined based on the age of the borrower on the payment due date. Premiums are calculated based on your rate and your average daily balance during that statement period.
For joint coverage, rates are based on the age of the oldest insured borrower multiplied by 1.7.
Life Insurance Single Premium Rates
| Age | Monthly Rate per $1000 of Outstanding Balance |
|---|---|
| Under 31 | $0.14 |
| 31-35 | $0.23 |
| 36-40 | $0.29 |
| 41-45 | $0.41 |
| 46-50 | $0.54 |
| 51-55 | $0.71 |
| 56-60 | $0.97 |
| 61-65 | $1.21 |
| 66-69 | $1.58 |
Note: Rates are converted from a monthly rate to a daily rate based on 365 days a year. Provincial sales tax will be added to the premium where applicable.
Loans
Rates are determined based on the age of the borrower on the date of the insurance application. Premiums are calculated based on your rate and your regular loan payment amount on the date that it is due.
Royal Credit Line Account
Rates are determined based on the age of the borrower on the payment due date. Premiums are calculated based on your rate and 3% of the daily balance in each billing month. This is because the benefit payable will be calculated as 3% of the qualifying balance at the time you were disabled (to the allowable maximum).
For joint coverage, rates are based on the age of the oldest insured borrower multiplied by 2.0.
Disability Insurance Single Premium Rates
| Age | Monthly Rate per $100 of Payment for Loans and per Estimated Disability Payment for Royal Credit Line |
|---|---|
| Under 31 | $1.66 |
| 31-35 | $2.06 |
| 36-40 | $2.58 |
| 41-45 | $3.30 |
| 46-50 | $3.75 |
| 51-55 | $4.28 |
| 56-60 | $6.24 |
| 61-65 | $7.26 |
| 66-69 | $8.03 |
Note: Rates are converted from a monthly rate to a daily rate based on 365 days a year. Provincial sales tax will be added to the premium where applicable.
Loans
Rates are determined based on the age of the borrower on the date of the insurance application. Premiums are calculated based on your rate and your loan balance on the date the payment is due.
Royal Credit Line® Account
Rates are determined based on the age of the borrower on the payment due date. Premiums are calculated based on your rate and your average daily balance during that statement period.
For joint coverage, rates are based on the age of the oldest insured borrower multiplied by 1.7.
Critical Illness Insurance Single Premium Rates
| Age | Monthly Rate per $1000 of Outstanding Balance |
|---|---|
| Under 31 | $0.25 |
| 31-35 | $0.35 |
| 36-40 | $0.45 |
| 41-45 | $0.77 |
| 46-50 | $1.17 |
| 51-55 | $1.65 |
| 56-60* | $2.22 |
| 61-65* | $3.17 |
| 66-69* | $4.40 |
*Applicable only for clients with existing LoanProtector coverage.
Note: Rates are converted from a monthly rate to a daily rate based on 365 days a year. Provincial sales tax will be added to the premium where applicable.
Critical Illness Insurance Joint Premium Rates
| Age | Monthly Rate per $1000 of Outstanding Balance |
|---|---|
| Under 31 | $0.43 |
| 31-35 | $0.60 |
| 36-40 | $0.77 |
| 41-45 | $1.31 |
| 46-50 | $1.99 |
| 51-55 | $2.81 |
| 56-60* | $3.77 |
| 61-65* | $5.39 |
| 66-69* | $7.48 |
*Applicable only for clients with existing LoanProtector coverage.
Note: Rates are converted from a monthly rate to a daily rate based on 365 days a year. Provincial sales tax will be added to the premium where applicable.
Your insurance coverage begins on the date your LoanProtector Application is approved.
Note: A benefit is only paid when loan funds are advanced or the date funds become available to withdraw from your Royal Credit Line account.
Your insurance coverage will end on the earliest of the following dates:
- The date your personal loan is paid in full;
- The date your personal loan is refinanced (i.e. add new funds);
- The date you cancel your Royal Credit Line account;
- The date you increase your Royal Credit Line account limit to over $100,000, and on each subsequent limit increase (unless you are already insured for the plan maximum;
- The date the Insurance Service Centre receives your written or verbal request to cancel your insurance coverage;
- The date that all or part of your insurance premiums are 90 days overdue;
- The last day of the month in which you turn 70 years of age;
- The date you die;
- The date you are no longer a borrower or co-borrower of the loan or Royal Credit Line account; or
- The date the group policy for life, critical illness or disability coverage terminates.
Your critical illness or disability coverage ends when your LoanProtector Life Insurance coverage ends.
Your critical illness coverage also ends on the date you are diagnosed with a covered illness, for which the Insurer pays a critical illness insurance claim. Critical illness insurance also ends and premiums are refunded if a diagnosis of cancer or any sign, symptom or investigation leading to a diagnosis of cancer, occurs within 90 days of your coverage effective date, regardless of when a diagnosis is made.
The following is a summary of the LoanProtector limitations and exclusions. For full details, please refer to the Certificate of Insurance:
No life, critical illness or disability benefit will be paid if your death, critical illness or disability is a result of events directly or indirectly related to or associated with:
- your use of any drug, poisonous substance, intoxicant or narcotic, unless taken according to the instructions of your Physician;
- your operation of any motorized vehicle or watercraft while your ability to do so is impaired by drugs or alcohol, or with blood alcohol concentration in excess of legal limits in the jurisdiction where the operation occurred; or
- your commission or attempted commission of a criminal offense, regardless of whether charges are laid or a conviction obtained.
No benefit will be paid if your death is a result of:
- Suicide, during the first 2 years from the date your insurance coverage started; or
No benefit will be paid if your disability was directly or indirectly the result of any of the following:
- Intentional, self-inflicted injury;
- Your pregnancy, other than physical complications of pregnancy;
- Your alcoholism or drug addiction, unless you maintain satisfactory participation in a rehabilitation program approved by the Insurer and your participation began during the waiting period and continues throughout the benefit period.
No benefit will be paid if:
- Your critical illness does not meet the definition for one of the Covered Illnesses; or
- Within 90 days of your coverage effective date, a diagnosis of cancer occurs or you have signs, symptoms or investigations leading to a diagnosis of cancer, regardless of when the diagnosis is made.
No life, critical illness or disability benefit will be paid if you fail to disclose information or you give incorrect information relating to the application.
The Insurer will NOT pay a benefit if you:
- die or become disabled within 12 months, or
- are diagnosed with a covered critical illness within 24 months
after the date you applied for Insurance, and your death, disability or critical illness for which a claim is submitted is a result of or related to or associated with a condition or health problem for which you had symptoms or received *Medical Treatment(Opens modal window) in the 12 months immediately preceding the date you applied for Insurance.
Written proof of a claim must be provided to the Insurer, via our Insurance Service Centre. You are responsible for making all of your regular loan and Royal Credit Line payments until you’ve been informed that your claim has been approved.
You can obtain a claim form from your branch or by contacting the Insurance Service Centre at 1-800-769-2523. You can also print the claim forms online by clicking on the following links.
Life claim forms must be received by the Insurer as soon as possible or within 1 year from the date of death. In Quebec, life claim forms must be received by the Insurer within 3 years from the date of death.
Disability claim forms must be received by the Insurer within 150 days from the day your disability started. You must provide medical evidence of the disability, at your expense.
Critical Illness claim forms must be received by the Insurer within 180 days from the date of diagnosis. You must provide medical evidence to support your claim, at your expense.
If you are an RBC Royal Bank Online Banking client, you'll receive automatic updates on the status of your claim. You can view these updates in the Online Banking Message Centre.
Explore your coverage options.
Answer a few quick questions to see the type of coverage you might want to consider for your loan or line of credit.
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