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We answer the most common questions about loan, mortgage and credit card balance protection.
Q: Why do I need insurance on my personal loan or mortgage? I already have some life insurance, isn't that enough?
A: Although you may already have some life insurance, it may not be enough to cover all your financial obligations. For instance, your obligations could include providing for your family, and paying off personal loans, a line of credit, credit card debt, and mortgage debt. Many financial planners recommend that you have life insurance for about eight to ten times your gross annual salary.
Q: I already have disability insurance at work. Won't that be enough to help me carry any debts?
A: Most employer disability plans cover only a portion of your salary while you're disabled, and some plans have an extended waiting period before benefits start. If you become disabled, your reduced income may not provide enough cash to maintain your current standard of living. Also, it may not be enough to cover any additional medical and living expenses. HomeProtector®, LoanProtector® and BalanceProtector® insurance can provide additional benefits that you could use. This is especially reassuring to know in the event that you leave your current employer and lose your employee benefit coverage.
Q: What is the waiting period for the payment of disability benefits?
A: The waiting period is a specific period of time, beginning at the onset of a disability, which must pass before any insurance benefit will be paid. For example, if the waiting period is 60 days, the insurance benefit begins on the day your first payment is due after the 60 day waiting period.
Q. I have satisfied the waiting period and submitted my claim, so why are the payments still being taken from my account?
A: Typically the insurer starts paying insurance benefits for approved claims after the waiting period. However in some cases the insurer may require longer to approve your claim. You are responsible for maintaining your mortgage, loan, line of credit or credit card payments until your claim is approved. For example, once your LoanProtector claim is approved, the insurer will start paying benefits retroactive to the first day after your waiting period.
Q: Some of the documentation I have received mentions Canada Life. Who should I contact if I have a question or claim?
A: For LoanProtector or HomeProtector:
LoanProtector and HomeProtector are underwritten by The Canada Life Assurance Company. The Insurance Service Centre works with Canada Life to administer your policy. Please contact us at the Insurance Service Centre at 1-800-ROYAL 2-3 (1-800-769-2523) with any questions or concerns.
A: For BalanceProtector:
BalanceProtector is underwritten by The Canada Life Assurance Company. Please contact Canada Life with any questions or concerns.
The content of these pages is provided for informational purposes only and is not complete in detail. Coverage is governed by the terms and conditions of the group creditor policies issued to Royal Bank of Canada by The Canada Life Assurance Company.
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