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What is Creditor Insurance?

Creditor insurance (also called credit protection) is optional coverage you can buy to help cover your debt balances in case of death, disability, critical illness or job loss (RBC Credit Card only). Here’s how it works and why it can be a smart way to help protect yourself and your family.

Why Creditor Insurance is Important

Most of us carry some debt—for a home or a car—or on a credit card. When life goes as planned, these debts fit into your budget nicely. It’s when something unexpected happens that debt can become an issue. That’s where creditor insurance comes in; it can help cover your debt to help prevent it from becoming a burden to you or your family.

Without creditor insurance, you may have to rely on savings or other insurance you have to repay debt—and this can dramatically reduce the money you or your family can put towards other needs.

How Creditor Insurance Works

If you die, become disabled and can’t work, or become critically ill due to a covered incident of cancer (life-threatening), heart attack or stroke, Creditor insurance can help reduce or pay off the balance on your insured mortgage, loan, line of credit or credit card. For your RBC Royal Bank credit card, it can also help protect you against involuntary unemployment1 or loss of self-employment income2.

  • For HomeProtector, your Life and Critical Illness insurance premium is based on your age and the amount of your mortgage at the time of application. Your disability insurance premium is based on your age at the time of application and the amount of your current mortgage payment.
  • For loans, your Life and Critical Illness insurance premium is based on your rate and your loan balance on the date the payment is due. Rates are determined based on the age of the borrower on the date of the insurance application. For disability insurance, premiums are calculated based on the rate per $100 of regular payment amount. Rates are determined based on the age of the borrower on the date of the insurance application.
  • For lines of credit, your Life and Critical illness insurance premium is based on the rate and your average balance during that statement period. Rates are determined based on the age of the borrower on the payment due date. Premiums are based on the rate and your average daily balance during that statement period. For disability insurance, 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 credit cards, your premium is based on your rate and your insured balance.
Involuntary unemployment due to strike or lockout, dismissal without cause or involuntary layoff.
Ceasing employment as a result of closure of your business which was registered or incorporated for a period of at least 36 consecutive months

Other Benefits of RBC Creditor Insurance

Here are a few other benefits that RBC creditor insurance can offer you:

  • Easy to apply for: In most cases there is no medical exam. If you don’t qualify for other types of insurance, you may still be able to qualify for creditor insurance.
  • Convenient: Your Insurance application can be completed at the same time as your Credit application.
  • Review period: Take 30 days to review your coverage. During that time, you can cancel your coverage and get a full refund of any premiums paid. You can also cancel coverage any time.

Coverage Offered at RBC

We offer three types of personal creditor insurance to help cover your RBC Royal Bank:

  • Mortgage balance, to help protect the home you and your family love
  • Loan or line of credit, to help protect your family’s lifestyle
  • Credit card balance, to help prevent this debt from becoming a burden to you or your family

HomeProtector Insurance

Helps cover your RBC mortgage to assist in protecting your home and family. Read More

LoanProtector Insurance

Protects your RBC loans or lines of credit, giving you a safety net for yourself and your family. Read More

BalanceProtector Premiere Plus Plan

Protects your RBC credit card balances in case of difficult times. Read More

Have an RBC mortgage, loan or line of credit?

Take a few minutes to see the optional creditor insurance coverage that’s available to you.

Try the Credit Protection Selector

  • HomeProtector insurance coverage is optional, and is underwritten by The Canada Life Assurance Company. Coverage is governed by the terms and conditions of the creditor's group insurance policies issued to Royal Bank of Canada by The Canada Life Assurance Company, and is subject to terms, conditions, exclusions and eligibility restrictions. Please see the HomeProtector Certificate of Insurance or for, Quebec residents, the distribution guide for complete terms and conditions, including benefits and exclusions.
  • LoanProtector insurance coverage is optional, and is underwritten by The Canada Life Assurance Company. Coverage is governed by the terms and conditions of the creditor's group insurance policies issued to Royal Bank of Canada by The Canada Life Assurance Company, and is subject to terms, conditions, exclusions and eligibility restrictions. Please see the LoanProtector Certificate of Insurance or, for Quebec residents, the distribution guide for complete terms and conditions, including benefits and exclusions.
  • BalanceProtector is optional creditor's group insurance underwritten by American Bankers Life Assurance Company of Florida (ABLAC) and American Bankers Insurance Company of Florida (ABIC). ABLAC, ABIC, their subsidiaries, and affiliates carry on business in Canada under the name Assurant. ®Assurant is a registered trademark of Assurant, Inc.