Creditor Insurance Protection: How it can protect your financial plan

A strong financial plan goes beyond saving and investing — it guides your short-, medium- and long-term goals while protecting what matters most. With the right insurance in place, you can stay on track toward your future with confidence and peace of mind.

A key part of financial planning is protecting your plan, which involves understanding how an unexpected health or life event may impact your ability to make payments. Protecting your plan helps with wealth preservation and allows you to stay in control of your financial plan, and on track even if your income becomes negatively impacted. 

When you’re faced with the unexpected, Creditor Insurance Protection can help pay off your debt or maintain payments for your debt for a period of time, allowing you and your family to stay on track financially.

Here's what you need to know about Creditor Insurance Protection, why it’s important and what options to consider as part of your financial plan.

If you develop a critical illness, suffer an involuntary job loss, become sick and unable to work, or pass away, protected borrowing with optional Creditor Insurance Protection on your mortgage(s), line(s) of credit, credit card(s) and business lending can keep your investments intact. It can help you protect your wealth and financial plan from potential unforeseen financial loss.

This type of insurance can help support you through the tough times when your income stops, and your bills don’t. Creditor Insurance Protection helps ensure your bills are paid and your financial plan remains on track. Your Scotia advisor will get to know you and understand your goals — reviewing your dependents, mortgage, debt, insurance, assets and accounts — to build a financial plan tailored to your needs.

Whether you have a mortgage, a line of credit, credit card or business borrowing, Scotiabank can help you protect your borrowing and preserve your wealth. With each type of coverage, you can stay prepared for the unexpected.

Scotia Mortgage Protection insurance — Protect your investment in your home during times of financial uncertainty. In the event of a covered critical illness, up to $500,000 can be paid toward your outstanding mortgage balance, while up to $1 million of your mortgage balance can be paid off due to a terminal illness or loss of life. If a physical or mental disability or job loss should occur, up to $3,500 of your monthly mortgage payment can be paid for a period of time. The benefit amounts are subject to the coverage options selected. For specific coverage details, please review the certificate of insurance.¹

Scotia Line of Credit Protection insurance — In the event of a covered critical or terminal illness, up to $150,000 per insured line of credit (and up to $300,000 for all insured lines of credit) can be paid toward your line of credit balance, while a loss of life can result in a payment up to $500,000. Meanwhile, a monthly benefit of up to $3,000 for a period of time can be paid in the event of a physical or mental health disability, or unexpected job loss. For specific coverage details, please review the certificate of insurance.¹

Scotia Credit Card Protection insurance — Our Basic Protection can pay up to $50,000 toward your credit card balance in the event of unexpected death, critical illness, or hospitalization. If Comprehensive Protection is chosen, in addition to the coverages offered by Basic Protection, up to $10,000 per month for a period of time can be paid in the event of a disability, job loss or a strike or lockout. For specific coverage details, please review the certificate of insurance.¹

Scotia Business Loan Protection insurance — Help ensure your business runs smoothly while you need to focus on a life or health event. Basic Protection provides a life insurance benefit of up to $2 million if an insured person passes away. Meanwhile, Comprehensive Protection offers the same plus a monthly disability benefit payment, a hospitalization benefit and a terminal illness benefit. For specific coverage details, please review the certificate of insurance.¹

There are some important questions to consider if you unexpectedly lost your job:

• How would you make your bill payments? (ex. mortgage/rent, utility bills, grocery, daycare, etc.)
• How long before you’re forced to dip into your hard-earned savings to cover your bills?
• How might this impact your financial plan and goals?
• Will you still be able to retire at the age you want?
• Will you still be able to fund your child’s education?
• Is there anyone else who depends on you financially whom you should consider?

It could take years to recover from an unexpected life event that disrupts your financial plan. Think of Creditor Insurance Protection as a financial safety net to help protect the investment in your home and prevent your plans/goals from becoming derailed if something unexpected happens.

To learn about the comprehensive range of Creditor Insurance Protection options available, speak with a Scotiabank advisor or visit Scotiabank.com/insurance. 

Our Creditor Insurance Protection Planner Tool is here to assist you in reviewing your financial situation and to help determine if optional Creditor Insurance Protection can help close gaps that may exist in your financial plan. If you have any questions about how to use the planner tool, please speak with a Scotiabank advisor.