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 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.
|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%|
|Life insurance||Disability insurance|
|Eligibility||The eligibility criteria are as follows:
||The eligibility criteria are as follows:
|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 payable in a lump sum when you sign the loan. It is based on the following:
|Insurance termination||Insurance is terminated when the first of the following occurs:
||Insurance is terminated when the first of the following occurs:
|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:
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.