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RRSP Loan Insurance

Insurance exists because we don’t want to worry about having an accident, falling ill or even dying. A good insurance plan can reduce hassle and worrying for your beneficiaries, protect you against unforeseen events and offer you peace of mind and freedom. Make sure that you or your family can live comfortably and have your needs met in case you become disabled following an illness or accident, or in the event of death.

WHAT IS LIFE INSURANCE?

Simply put, life insurance guarantees that the insured amount of your personal loan will be paid to Laurentian Bank upon your death. In addition, the premium is included in your loan payments, so you don’t have to think about it each month. Protect your loved ones today, and ensure that they can maintain their current quality of life should you pass away. For example, if you were to have an acciden1 resulting in blindness, this insurance plan will reimburse 100% of your loan. The table below details the damages covered by this insurance plan.

WHAT IS DISABILITY INSURANCE?

In the event of an illness or accident that renders you unable to perform your professional duties, your disability insurance will automatically make your loan payments. As a result, you can keep your savings for more urgent expenses, such as hospital bills, transportation and professional care.

WHY WAIT?

Why wait if you are in good health right now? This situation could change in the event of an accident or illness, and your current state of health could deteriorate.

TABLE
Loss Life insurance percentage
Sight2 in both eyes 100%
Both hands3 or both feet3 100%
One hand3 and sight2 in one eye 100%
One foot3 and sight2 in one eye 100%
One hand3 and one foot3 100%
One arm4 and one leg4 100%
Hearing2 and speech2 100%
One arm4 or one leg4 75%
One hand3 or one foot3 67%
Sight2 in one eye 67%
Hearing2 or speech2 50%
Thumb and index finger5 of one hand 33%
Use6 of both arms or both hands 100%
Use6 of both legs or both feet 100%
Use6 of one arm or one leg 75%
Use6 of one hand or one foot 67%

 

FEATURES
  Life insurance Disability insurance
Eligibility The eligibility criteria are as follows:
  • You are between 18 and 64 years of age.
  • You are the borrower, co-borrower or guarantor.
  • You are a Canadian resident.
The eligibility criteria are as follows:
  • You have life insurance.
  • You are between 18 and 59 years of age.
  • You have been gainfully employed during the 20 weeks prior to the application, for at least 20 hours per week.
  • You repay the loan on a monthly basis.
  • You are a Canadian resident.
Insurable amount The maximum insurable amount for the loan or set of loans is $750,000. The maximum insurable amount is $2,500 per month, for a maximum duration of 60 months for each period of disability, with no limit as to the periods of disability. Please note that arrears are not covered by this insurance.
Premium type The premium is payable in a lump sum upon signing the loan and is calculated as follows:
  • The premium is based on the age of the borrower and the initial amount of the loan.
  • The premium can be financed or not.
The premium is payable in a lump sum when you sign the loan. It is based on the following:
  • The premium is based on the age of the borrower and the initial amount of the loan.
  • The premium can be financed or not.
Insurance termination Insurance is terminated when the first of the following occurs:
  • The borrower reaches 70 years of age.
  • The loan expires.
  • The loan is refinanced.
  • The loan or premium is in default.
  • The insurer pays a death claim for the loan.
  • The insured person voluntarily cancels the loan.
  • The loan is closed.
Insurance is terminated when the first of the following occurs:
  • The borrower reaches 65 years of age.
  • The loan expires.
  • The loan is refinanced.
  • The loan or premium is in default.
  • The insurer pays a death claim for the loan.
  • The insured person voluntarily cancels the loan.
  • The loan is closed.
Accidental dismemberment insurance This coverage is included with your life insurance. For the benefits paid, please refer to the table of losses. These vary from 33 to 100% of your loan balance.
Available options For an insured person, you can choose:
  • Life insurance only
  • Life insurance combined with disability insurance
There is no limit as to the number of people you can insure.



Summary

This product is suited to you if:

  • You want peace of mind.
  • In case of disability, you want to ensure that payments are made on your personal loan.
  • You want to make life easier for the people in charge of your estate and prevent delays.
  • You do not want use your savings to make payments on your personal loan, should you become ill or have an accident.
  • You do not want to deplete your savings or those of your beneficiaries, in the event of your death.


1. Accidental injury: bodily injury arising from the violent, sudden and unforeseen action of an external cause independent from any other cause.
2. Hearing, sight or speech loss: total and definitive loss of hearing, sight or speech confirmed by a certified doctor who is recognized and approved by the Royal College of Physicians and Surgeons of Canada.
3. Loss of one hand or one foot: complete amputation to the wrist or to the ankle or above but under the elbow or the knee.
4. Loss of one arm or one leg: complete amputation to the elbow or the knee or above.
5. Index finger: the finger closest to the thumb.
6. Loss of use: total and definitive loss of the use of a limb linked to a continued disability in that limb for 12 months or more.