Questions About Business Loan
Insurance Plan
We answer the most common questions about Business Loan Insurance Plan.
Q: Why do I need disability insurance on my business loan?
A: Canadians have a one in three chance of becoming disabled for 90 days or longer, at least once before the age of 65†. If this happened to one of the business owners, it could have a serious impact on your business. That's why RBC Royal Bank® goes one step further to offer disability insurance coverage together with life insurance coverage under Business Loan Insurance Plan.
Q: What does the disability benefit provide?
A:
The disability insurance option of this plan is available in combination with life insurance, covering up to three business owners who have a minimum of $10,000 of life insurance coverage in place.
In the event of a disability, it provides up to $7,000 per month to cover insured loan payments so that the insured person can focus on their recovery.
Q: What is a disability?
A: You are considered disabled if you cannot work because of a bodily injury, disease, mental infirmity, sickness or complications due to pregnancy and any related medical conditions. You'll also need to be under the care of a licensed physician or health practitioner approved by the insurer and cannot engage in any occupation or employment.
Q: Why should I insure my business loan?
A: If your business revenues depend on the skills of one person or a number of key people, their death could have a significant impact on your earnings. By helping to ensure that debts are settled, Business Loan Insurance Plan makes it easier for you to get through this difficult transition period.
Q: I already have life insurance. Won’t that be enough to help carry any debts?
A: If you are adding new debt, you should consider the last time you reviewed your coverage to ensure that it still meets your current credit situation. Business Loan Insurance Plan helps pay off business debt, thereby preserving personal insurance to cover other needs. Also, premiums will be charged strictly on the outstanding balance of your loans, and if you do not use your operating loan during the year, you will not have to pay any premiums.
Q: Some of the documentation I have received regarding life insurance for my business loan mentions Sun Life. Who should I contact if I have a question or claim?
A: Business Loan Insurance Plan is underwritten by Sun Life Assurance Company of Canada. The Insurance Service Centre works with Sun Life to administer your policy.
†Source: 1985 Commissioner's Disability Table
Business Loan Insurance Plan is underwritten by Sun Life Assurance Company of Canada.
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