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Common questions
- Life Insurance can protect your family from any financial crisis
- You leave a completely tax-free inheritance to your dear ones or beneficiaries
- Life Insurance can pay for your funeral expenses
- You can clear your debts and loans with Life Insurance
LoanProtector® Insurance
Protection for the Big Things in Life
When you and the ones close to you need it the most, LoanProtector Life, Critical Illness Insurance and Disability Insurance can provide you and your dear ones with financial security for your line of credit or loan.
What is LoanProtector?
If you have spent the past couple of months planning to buy a new vehicle, or take a well-deserved holiday with the family, or invest in renovating your property. If you have spent a considerable amount of time getting a loan to finance the plans mentioned above, you might wonder how you can protect them?
Here at RBC Royal Bank, we offer the financial security of LoanProtector Life insurance to protect yourself and your family’s standard of living, but also your net worth and assets.
There are a few things to be kept in mind as you look towards building your family’s financial future:
- You may require a loan for certain things.
- Or a line of credit to pay for a few financial expenses.
- Insurance may be the correct solution to keep your plans on track.
- The way you have planned your finances.
- Will your payments fit into your financial plans.
- If I suffer an accident or get sick, making you unable to work
- Loan to protect your assets and financial plans.
- Live stress-free knowing that you can continue to live your life the way you intend to.
Legal Disclaimers:
This insurance plan is a creditor’s group insurance plan that The Canada Life Assurance Company underwrites. The insurance policy is subject to terms and conditions, limitations, benefits and exclusions, including eligibility restrictions.
Personalize Your Loan Protection
You can either choose a life insurance plan or add a critical illness or disability insurance for added protection.
Coverage Options:
Life Insurance
Decrease your outstanding RBC Royal Bank loan balance and the line of credit balance in the unfortunate event of your passing of up to $500,000
Critical Illness Insurance
If you are diagnosed with a severe illness and covered by a critical illness insurance plan, you can pay off or decrease your outstanding RBC Royal Bank loan balance and the line of credit balance of up to $300,000 (OR)
Disability Insurance
You can maintain your regular loan payments and pay 3% of your line of credit balance if you become disabled temporarily or permanently. Coverage up to $3,000 for a maximum period of 24 months.
- It helps maintain your personal insurance.
- It protects your savings for when they need to be saved.
- LoanProtector, Critical Illness and Disability insurance benefits are non-taxable, and they need not be required to be coordinated with other insurance policies.
The Qualifying Balance is explained as:
- For life insurance policies: Whichever is lesser, the date of death of the insured's outstanding balance or the average monthly balance of the insured 12 months before their demise.
- For critical illness insurance: Whichever is lesser, the date of death of the insured's outstanding balance or the average monthly balance of the insured 12 months in which the diagnosis happened.
- For disability insurance: Whichever is lesser, the date of death of the insured's outstanding balance or the average monthly balance of the insured 12 months before the month in which the disability happened.
Why Might I Need to Apply for Loan Insurance?
- If I have coverage through work, do I really need more insurance coverage?
- Losing your work due to a disability or termination could result in you and your family being left without any coverage.
- Ideally, employers only provide insurance coverage that amounts to 1 to 2 times your salary in the event of your passing, and if you are disabled due to an injury or illness, about two-thirds of your income will be provided.
Would you be able to manage your financial situation with a third less income and increased expenses?
- Would you be able to manage your financial situation with a third less income and increased expenses?
- LoanProtector® Insurance will help take care of your outstanding debts while the coverage from your existing employee coverage will take care of your family financial needs.
Upon my death, couldn’t my estate just sell my assets?
Yes, they can, but you must ask yourself. Are those assets more than enough to cover your outstanding debts and take care of your loved ones’ immediate and long-term financial needs? Additionally, if your dear ones had to sell your assets all of a sudden in a down-market to pay off your debts? Don’t worry! LoanProtector® Insurance can take care of your existing financial plans making sure they are intact.
Do I need to purchase an insurance policy for a small RSP loan?
Even though your registered savings plan or line of credit may be minimal, it is an added liability. For mere cents a day, LoanProtector® Insurance can help minimize or even, in certain instances, pay off debts that are in the event of your passing or if you have been diagnosed with a terminal illness. If you have been disabled due to an illness or injury, we can help take care of your payments.
Isn’t term insurance a better value?
A term life insurance can indeed play a vital role financially in providing for your family’s financial future. When you purchase LoanProtector® Insurance, you can rest assured; it is an affordable and convenient way to make sure your outstanding debts are looked after. Other benefits of LoanProtector® Insurance are:
Isn’t term insurance a better value?
A term life insurance can indeed play a vital role financially in providing for your family’s financial future. When you purchase LoanProtector® Insurance, you can rest assured; it is an affordable and convenient way to make sure your outstanding debts are looked after. Other benefits of LoanProtector® Insurance are:
- Automatic coverage approval
- Single or joint life coverage protection for critical illness, life and disability.
Am I Eligible for LoanProtector® Insurance?
To find out if you are eligible for LoanProtector® Insurance, you must be the borrower of Royal Credit Line or an eligible RBC Royal Bank personal fixed or variable rate loan and the co-borrower up to a maximum of two people are eligible, and the application criteria are: The individual must be less than 70 years old.
Am I eligible to apply for disability insurance?
You must also:
- Be applying for LoanProtector Life Insurance coverage.
- Be actively employed on the date of applying in full-time employment, self-employment, or seasonal employment.
Am I eligible to apply for critical illness insurance?
You must also:
- Be applying for LoanProtector Life Insurance coverage.
- Be less than 56 years of age.
Please Note: On the same loan or line of credit, you must not be insured for both disability insurance and critical illness insurance at the same time.
The application process
You are eligible to apply for LoanProtector® Insurance If you have a personal fixed or variable rate loan or Royal Credit Line® or an existing RBC Royal Bank®.
- Log into the RBC online banking and examine the application information, then follow the straightforward steps to apply as outlined.
- You can choose to visit your local RBC Royal Bank branch, speak to our expert credit specialist, and complete the LoanProtector® Insurance application. Additionally, we offer a 30-day waiting period.
- From the date the coverage beings, you have up to 30 days to decide if you wish to continue with this insurance policy or cancel it.
- If you decide to cancel the policy, you will receive a full refund of your premiums if they have been collected.
What if you don’t have an RBC Royal Bank loan?
Suppose you don’t have a Royal Credit Line or an RBC Royal Bank personal fixed or variable rate loan. In that case, our experienced credit specialists can help you select the best borrowing option that suits your specific needs. They will answer your doubts in an easy, quick, and hassle-free manner, ensuring you get the credit you deserve.Is there a need for me to answer any health questions?
If the total insured loan amount or line of credit is $100,000 or less:
You don’t need to answer any questions regarding your health. Additionally, your coverage automatically gets approved if the loan or line of credit exceeds $100,000 You will not be required to undertake a separate health assessment. If you choose to answer “No” to all the health questions mentioned in the form, then the insurer will accept your application. At that period in time, Canada Life will not require any further medical information. If you choose to answer “Yes” to all the questions mentioned in the form, you will be subject to a health assessment.
What is a health assessment from Canada Life?
A health assessment from Canada Life allows the insurer to examine their insurance application in detail. The evaluation may include a telephonic interview with a representative of the insurance company. Based on the outcome, Canada Life has the right to make you complete a thorough health questionnaire, or we may ask you to obtain a detailed health questionnaire from your registered physician.You will be asked to undergo a blood/urine test or a paramedical examination in certain cases.
How do I know if my insurance application has been approved?
- If you have been asked to complete a health check-up, you will receive a written notice on the acceptance or decline of your insurance application.
- Additionally, if you are a client of RBC Royal Bank, you will be subject to automatic updates based on the status of your application. You can view these messages in your online banking message centre.
- After your insurance application has been processed, you will have temporary life insurance for a maximum period of 30 days.
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Call 1 844-542-4678 to speak to our advisors.
How are premiums calculated in your insurance plan?
Loans
Based on the date of the insurance application and the insurer’s age, the rates are calculated. Your premiums are based on the date the payment is due and the rate of your loan balance.
Royal Credit Line® Account
Based on the payment due date and the age of the insurer, the rates are calculated. Your premiums are based on your average daily balance during the statement period and the rate of your loan balance.Rates are determined on the age of the oldest insured borrower multiplied 1.7 times for joint coverages.
| Life Insurance Single Premium Rates | |
|---|---|
| Age Band | Monthly Rate per $1000 of Outstanding Balance |
| Under 31 | $0.12 |
| 31-35 | $0.19 |
| 36-40 | $0.29 |
| 41-45 | $0.41 |
| 46-50 | $0.54 |
| 51-55 | $0.68 |
| 56-60 | $0.81 |
| 61-65 | $1.01 |
| 66-69 | $1.32 |
Get the best Insurance Quote from RBC Insurance
Call 1 844-542-4678 to speak to our advisors.
How will the premium be calculated for disability insurance?
Loans
Based on the date of the insurance application and the insurer’s age, the rates are calculated. Your premiums are based on the rate of regular payment of $100
Royal Credit Line Account
Based on the payment due date and the insurer’s age, the rates are calculated. Your premiums are determined based on the rate of 3% of the balance in the month that is billed. At the time of disability, the benefit payable will be calculated at 3% of the balance. Rates are determined on the age of the oldest insured borrower multiplied two times for joint coverages.
Disability Insurance Single Premium Rates
| Life Insurance Single Premium Rates | |
|---|---|
| Age Band | Monthly Rate per $100 of Payment for Loans and per Estimated Disability Payment for Royal Credit Line |
| Under 31 | $1.38 |
| 31-35 | $1.72 |
| 36-40 | $2.15 |
| 41-45 | $2.75 |
| 46-50 | $3.25 |
| 51-55 | $4.15 |
| 56-60 | $5.20 |
| 61-65 | $6.05 |
| 66-69 | $6.69 |
How will the premium be calculated for critical illness insurance?
Loans
Based on the date of the insurance application and the insurer’s age, the rates are calculated. Your premiums are based on the payment due date and your loan balance.
Royal Credit Line Account
Based on the payment due date and the age of the insurer, the rates are calculated. Your premiums are based on your average daily balance during the statement period and the rate of your loan balance.
Rates are determined on the age of the oldest insured borrower multiplied 1.7 times for joint coverages.
Critical Illness Insurance Single Premium Rates
| Life Insurance Single Premium Rates | |
|---|---|
| Age Band | 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 |
Please note: It is applicable only for customers who have existing LoanProtector coverage. Wherever applicable, provincial sales tax will be added to your premium. The insurance rates will be converted from a monthly rate to a daily rate. Wherever applicable, provincial sales tax will be added to your premium.
Critical Illness Insurance Joint Premium Rates
| Life Insurance Single Premium Rates | |
|---|---|
| Age Band | 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 |
Please note: It is applicable only for customers who have existing LoanProtector coverage. Wherever applicable, provincial sales tax will be added to your premium.The insurance rates will be converted from a monthly rate to a daily rate. Wherever applicable, provincial sales tax will be added to your premium.
Get the best Insurance Quote from RBC Insurance
Call 1 844-542-4678 to speak to our advisors.
When does my LoanProtector® Insurance coverage begin and end?
When does it begin?
The day your LoanProtector® Insurance application gets approved, your coverage begins for your line of credit or on your RBC Royal Bank-approved loan. Please note: Until the date of the advance of your loan, there will be no benefit paid. The funds become accessible to you when you withdraw them from your Royal Credit line account.
When does it end?
Your insurance coverage will end on the following dates or at the earliest:
- The date the entire loan amount had been paid in full, except in the case of switching the balance outstanding between a variable rate and fixed-rate loan.
- The date when the loan has been refinanced.
- The day you decide to cancel your Royal Credit line.
- The day you decide to increase your Royal Credit line to over $100,000. Note: On each increase, you must reapply for coverage.
- The day the insurance customer service centre receives your request wishing to cancel your insurance policy coverage.
- If the insurance premiums are 90 days overdue.
- The last day of the month where you turn 70 years old.
- The day you pass away.
- The day you no longer are a borrower or co-borrower on the Royal Credit line or the loan.
- The date the group life insurance policy has been terminated.
- The date when your critical illness coverage or disability coverage ceases to exist because your LoanProtector® Insurance coverage has expired.
The date you have been diagnosed with a terminal illness covered in the critical illness plan for which the insurer pays an insurance claim, the coverage ends. Critical illness coverage also comes to an end. Your premiums are refunded if symptoms, signs, or diagnosis occurs within 90 days of your effective coverage date, irrespective of when the diagnosis was made.
What Are the Limitations and Exclusions?
Life Insurance
Your insurance benefit won’t be paid in the event:
- You commit suicide or decide to take your own life within two years of the date the coverage begins.
- You commit a criminal offence and die due to committing or attempting to commit a criminal offence, irrespective of whether you’ve been convicted or charges have been pressed.
Disability Insurance
You will not receive any benefit directly or indirectly if any of the below-mentioned instances occur:
- Intentionally injuring yourself.
- Attempting to commit or committing a criminal offence irrespective of when charges have been pressed, or you have been convicted.
- If you are pregnant or have any pregnancy-related physical complications.
- If you are addicted to alcohol or drugs. Unless you submit proof approved by the insurer that you are receiving treatment in a rehabilitation facility. You must ensure that your participation began in the waiting period and will continue throughout the benefit period.
Critical Illness Insurance
You will not receive any benefit for your critical illness insurance claim based on the below-mentioned factors:
Modes of payment for RBC Insurance Term Life Insurance policy?
- If you have been using illegal or illicit drugs or consuming illegal substances.
- If you have been misusing medication obtained without permission.
- If you have signs and symptoms that lead to a cancer diagnosis within 90 days of the effective coverage date.
Misrepresentation
Please note: If you disclose false or incorrect information when applying for insurance, you will not be entitled to receive a disability benefit or critical illness benefit.
Pre-existing medical conditions exclusion
The benefit will not be paid by the insurer if: You have been seeking advice, treatment, medical care, consultation, or service from a registered health care provider. Additionally, if you had taken any injections, pills, or any form of medication to treat any symptoms of a health condition that you have been diagnosed with in the last twelve months before you applied for disability insurance or critical illness insurance.
- For a life claim if you passed away 12 months after applying for life insurance.
- Applying for a disability claim in the last 12 months, you became disabled after applying for disability insurance.
- You were applying for a critical illness claim when you were diagnosed with a terminal illness 24 months after applying for the insurance.
Please note: Your critical illness, disability, or death for which a claim is submitted results from or related to a medical condition referred to in (1) above.
Get the best Insurance Quote from RBC Insurance
Call 1 844-542-4678 to speak to our advisors.