What is LoanProtector?

LoanProtector life, disability and critical illness insurance can help provide you with a secure financial safety net for your loan or line of credit precisely when you and your family need it most.

  • Pays off or reduces your outstanding insured RBC Royal Bank® loan balance and the qualifying balance of lines of credit in the event of death (up to $500,000)
  • Pays off or reduces your outstanding insured RBC Royal Bank loan balance and the qualifying balance of lines of credit if you are diagnosed with a covered illness (up to $300,000)
  • Maintains your regular loan payment(s) and pays 3% of the qualifying balance of your line of credit in the event of a disability (up to $3,000 per month for a maximum of 24 months)
  • Preserves your personal insurance
  • Helps safeguard your savings for what they were intended

The Qualifying Balance Is Defined As:

For life insurance, the lesser of the outstanding balance as of the date of death or the average monthly balance for the 12 months prior to the month of death.

For critical illness insurance, the lesser of the outstanding balance as of the date of diagnosis or the average monthly balance for the 12 months prior to the month in which the diagnosis occurred.

For disability insurance, the lesser of the outstanding balance as of the date of disability or the average balance for the 12 months prior to the month in which the disability occurred.

Life, critical illness and disability benefits are non-taxable and benefits do not have to be coordinated with other insurance plans.

Why Do I Need Protection?

Do I need more coverage if I already have coverage through work?

If you lose your job, any group disability insurance coverage through work terminates, meaning you and your family could be left without coverage.

Typically, employers only provide coverage that amounts to 1 to 2 times your salary in the event of your death, and about two-thirds of your income if you are disabled and unable to work due to illness or injury.

  • Would you be able to manage with a third less income and increased expenses?
  • And, if you leave your job or become self-employed, you could lose your coverage

LoanProtector insurance can help take care of your debt while allowing your existing employee coverage to take care of your family.

They could, but are those assets enough to cover your debts and look after your family's immediate and long-term needs? And what would happen if your family had to suddenly sell your assets in a down market to pay off your debts? LoanProtector insurance means that your existing financial plan can remain intact.

Although your RSP loan or line of credit may be small, it is an additional liability. For just cents a day, LoanProtector insurance can pay off or reduce your debt in the event of your death or diagnosis of a covered illness, or take care of your payments if you are disabled and unable to work due to illness or injury.

It's true that term life insurance can provide for your family's future and may be an important part of your financial plan. But LoanProtector insurance is a quick, convenient and cost effective way to help ensure your debts are looked after. The cost of LoanProtector insurance versus a term policy is usually much lower over the life of the loan. Other features of LoanProtector insurance are:

  • Approval for coverage is usually automatic
  • You only pay for the coverage you need
  • Life and critical illness premiums are based on the outstanding loan balance
  • Offers you the protection of single or joint life and disability or critical illness coverage

Am I Eligible?

Both the borrower of an eligible RBC Royal Bank personal fixed or variable rate loan or Royal Credit line and the co-borrower, to a maximum of two persons, are eligible and at the date of application must be:

  • Less than 70 years old

To apply for disability insurance, you must also:

  • Have LoanProtector Life Insurance coverage
  • Be actively working, on the date of application, in full-time employment, self-employment, or seasonal employment

To apply for critical illness insurance, you must also:

  • Have LoanProtector Life Insurance coverage
  • Be less than 56 years old

Note: You cannot be insured for both critical illness and disability insurance at the same time on the same loan or line of credit.

How Do I Apply?

If you have an existing RBC Royal Bank® personal fixed or variable rate loan or Royal Credit Line®, you can apply for LoanProtector® insurance, by:

  • Signing into Online Banking and clicking the “Apply” link on your loan account details page. Learn more about LoanProtector insurance
  • Contacting the Insurance Service Centre 1-800-769-2523 to apply over the phone. Due to provincial legislation in Alberta and Quebec, clients in these provinces are required to go to an RBC Royal Bank Branch or call RBC Royal Bank at 1-800-769-2511 in order to enrol.
  • Contacting the Insurance Service Centre 1-800-769-2523 to apply over the phone (Residents of Quebec & Alberta, please see the note.
  • Visiting your RBC Royal Bank branch, where you can talk to a Credit Specialist and complete a LoanProtector Insurance Application.

  • You have the option to cancel your insurance coverage within 30 days of when the coverage begins
  • You will receive a full refund of your premiums, if any have been collected

If you don't already have a RBC Royal Bank personal fixed or variable rate loan or Royal Credit line, our Credit Specialists can help you select the RBC Royal Bank borrowing options that are right for you. Whether you talk to them in person or on the phone, they will make it quick, easy and convenient for you to get the credit you need. You'll then be able to apply for LoanProtector insurance.

1-800-769-2511 — 24 hours a day, 7 days a week

Do I Have to Answer Any Health Questions?

If the total of your life insured RBC Royal Bank loans and lines of credit limit, plus any loans and lines of credit for which you are applying for LoanProtector insurance is $100,000 or less

  • You are NOT required to answer any health questions. Coverage is automatically approved

If the total of your life insured RBC Royal Bank loans and lines of credit limit, plus any loans and lines of credit limit for which you are applying for LoanProtector insurance exceeds $100,000

  • You must answer the applicable application health question(s)

If you answer ‘NO’ to all of the applicable application health questions, then your application is accepted and the Insurer does not require any further health information at that time.

If you answer ‘YES’ to any of the applicable application health questions, you will be subject to a separate health assessment.

A health assessment allows the Insurer, Canada Life, to review your application for insurance in detail. The health assessment may include a telephone interview with a representative of the Insurer. Depending on the outcome, Canada Life may require you to complete a detailed health questionnaire or obtain a medical report from your current attending physician. In certain circumstances it may be necessary to undergo a paramedical examination and a blood/urine test.

If you are required to complete a health assessment, you'll receive written notice of the acceptance or decline of your application for insurance.

If you are a RBC Royal Bank Online Banking client, you'll receive automatic updates on the status of your application and can review these updates within your Online Banking message centre.

You'll have temporary life insurance while your application is being processed for a maximum of 30 days.

How Are Premiums Calculated?

Loans

Rates are determined based on the age of the borrower on the date of the insurance application. Premiums are based on your rate and your loan balance on the date the payment is due.

Royal Credit Line® Account

Rates are determined based on the age of the borrower on the payment due date. Premiums are based on the rate and your outstanding balance on the date the premiums are due.

For joint coverage, rates are based on the age of the oldest insured borrower multiplied by 1.7.

Life Insurance Single Premium Rates

Age Band Life Rates Monthly rate per $1000 of outstanding balance
Under 31 $.12
31-35 $.19
36-40 $.29
41-45 $.41
46-50 $.54
51-55 $.68
56-60 $.81
61-65 $1.01
66-69 $1.32

Note: Rates are converted from a monthly rate to a daily rate based on 365 days a year. Provincial sales tax will be added to the premium where applicable.

Loans

Rates are determined based on the age of the borrower on the date of the insurance application. Premiums are calculated based on the rate per $100 of regular payment amount.

Royal Credit Line Account

Rates are determined based on the age of the borrower on the payment due date. Premiums are calculated based on the rate and 3% of the daily balance in each billing month. This is because the benefit payable will be calculated as 3% of the qualifying balance at the time you were disabled (to the allowable maximum).

For joint coverage, rates are based on the age of the oldest insured borrower multiplied by 2.0.

Disability Insurance Single Premium Rates
Age Band Disability Rates Monthly rates per $100 of payment for loans and per estimated disability payment for RCL Account.
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

Note: Rates are converted from a monthly rate to a daily rate based on 365 days a year. Provincial sales tax will be added to the premium where applicable.

Loans

Rates are determined based on the age of the borrower on the date of the insurance application. Premiums are based on your rate and your loan balance on the date the payment is due.

Royal Credit Line® Account

Rates are determined based on the age of the borrower on the payment due date. Premiums are based on the rate and your outstanding balance on the date the premiums are due.

For joint coverage, rates are based on the age of the oldest insured borrower multiplied by 1.7.

Critical Insurance Single Premium Rates

Age Band Critical Illness Rates Monthly rate per $1000 of outstanding balance
Under 31 $.25
31-35 $.35
36-40 $.45
41-45 $.77
46-50 $1.17
51-55 $1.65
56-60* $2.22
61-65* $3.17
66-69* $4.40

Note: Rates are converted from a monthly rate to a daily rate based on 365 days a year. Provincial sales tax will be added to the premium where applicable.

*Applicable only for clients with existing LoanProtector coverage. Provincial sales tax will be added to your premium where applicable.

When Does My Coverage Begin and End?

Your insurance coverage begins on your RBC Royal Bank approved loan or line of credit on the date your LoanProtector Application is approved.

Note: No benefit will be paid until the date of the advance of your loan, or the date funds become available to withdraw from your Royal Credit Line account.

Your insurance coverage will end on the earliest of the following dates:

  • The date the loan is paid in full except for the purpose of switching the outstanding balance between a fixed and variable rate loan
  • The date the loan is refinanced (i.e. add new funds)
  • The date you cancel your Royal Credit Line
  • The date you increase your Royal Credit Line limit to over $100,000, and on each subsequent increase (you must reapply for coverage)
  • The date the Insurance Service Centre receives your written request to cancel your insurance coverage
  • The date insurance premiums, all or part, are 90 days overdue
  • The last day of the month in which you turn 70 years of age
  • The date when you make an assignment in, or are petitioned into, bankruptcy
  • The date you die
  • The date you are no longer a borrower or co-borrower on the loan or Royal Credit Line
  • The date the group policy for life, critical illness or disability coverage terminates

Critical illness or disability coverage ends when your LoanProtector Life Insurance coverage ends.

Critical illness coverage also ends on the date you are diagnosed with a covered Illness for which the Insurer pays a critical illness insurance claim. Critical illness coverage also ends and premiums are refunded if a diagnosis of cancer or signs, symptoms or investigations leading to a diagnosis, occurs within 90 days of your coverage effective date, regardless of when a Diagnosis is made.

What Are the Limitations and Exclusions?

When your insurance benefit won't be paid:

  • Suicide, if you take your own life, whether you were sane or insane, within 2 years of the date that the insurance coverage begins
  • Criminal offense, if you die as a result of committing or attempting to commit a criminal offense, regardless of whether charges are laid or a conviction obtained.

No benefit will be paid if your disability was directly or indirectly the result of any of the following:

  • Intentional self-inflicted injury whether sane or insane
  • Your committing or attempting to commit a criminal offence regardless of whether charges are laid or a conviction obtained
  • Your pregnancy, other than physical complications of pregnancy
  • Your alcoholism or drug addiction

No benefit will be paid if your critical illness claim is a result of, or related to, the following:

  • Your use of illegal or illicit drugs or substances,
  • Your misuse of medication obtained with or without a prescription
  • Within 90 days of your coverage effective date, a Diagnosis of Cancer occurs or you have signs, symptoms or investigations leading to a Diagnosis of Cancer, regardless of when the Diagnosis is made.

No life, critical illness or disability benefit will be paid if you fail to disclose information or you give incorrect information relating to the application.

The Insurer will NOT pay a benefit if:

  1. You have received treatment (meaning advice, consultation, care or service from a health care provider), taken pills, injections, or any other form of medication or consulted a health care provider, for any health condition or symptoms of a health condition, whether diagnosed or not, in the 12 months before you applied for life or critical illness or disability insurance AND
    • for a life claim, you died within 12 months after you applied for life insurance;
    • for a disability claim, you became disabled within 12 months after you applied for disability insurance;
    • for a critical illness claim, you were diagnosed with the critical illness within 24 months after you applied for critical illness insurance; AND
  2. Your death, disability or critical illness for which a claim is submitted is a result of or related to a health condition referred to in (1) above.

How Do I Submit a Claim?

Written proof of claim must be provided to the Insurer, via our Insurance Service Centre. You are responsible for making all of your regular loan and lines of credit payments until the Insurer informs you that your claim has been approved.

You can obtain a claim form from your branch or by contacting the Insurance Service Centre at 1-800-769-2523. You can also print the claim forms online by clicking on the following links.

You can obtain a claim form from your branch or by contacting the Insurance Service Centre at 1-800-769-2523. You can also print the claim forms online by clicking on the following links.

You must send the Life Insurance claim form within one year from the date of death, otherwise the claim will be denied.

You must send the Disability Insurance form within 150 days from the day your disability started, otherwise the claim will be denied. You must provide medical evidence of the disability, at your expense.

You must send the Critical Illness Insurance claim form within 180 days from the date of diagnosis, otherwise the claim will be denied. You must provide medical evidence to support your claim, at your expense.

If you are a RBC Royal Bank Online Banking client, you'll receive automatic updates on the status of your claim. You can view these updates in the Online Banking Message Centre.

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 creditor's group policies, #G28444 for life insurance, #H28544 for critical illness insurance and #H28445 for disability insurance issued to Royal Bank of Canada by The Canada Life Assurance Company. Please see the LoanProtector Certificate of Insurance or for Quebec residents the distribution guide for complete terms and conditions, including benefits and exclusions.

Underwritten by The Canada Life Assurance Company.

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