Scotia Business Loan Protection insurance

Scotia Business Loan Protection is an optional insurance product designed to help you with your business-related financial obligations by covering your Scotia Business monthly loan payments or paying off your outstanding balance, as a result of certain unexpected events that may have a significant financial impact.

Scotia Business Loan Protection insurance includes coverage for Disability, Hospitalization, Terminal Illness and Loss of Life.

You do not need to apply for this optional insurance coverage to be approved for a Business Loan.

You have two insurance coverage bundles to choose from:

Comprehensive Protection Coverage:

• Life insurance benefit of up to $2,000,000 if an insured person passes away;
• Disability insurance benefit paid monthly and equal to 1% of the Comprehensive coverage amount, up to $7,500, for a maximum of 24 months per claim or 48 months maximum per lifetime.
• Hospitalization insurance benefit equal to 2% of the Comprehensive coverage amount, up to $15,000 paid in one lump sum payment
• Terminal Illness insurance benefit equal to the outstanding balances on your insured borrowings up to $2,000,000

Basic Protection Coverage:

• Life insurance benefit of up to $2,000,000 if an insured person passes away
  

Businesses that reside and operate in Canada, are a sole proprietorship, partnership, corporation holding company or other entity operating a small business, farm, fishery or ranch and have a Scotiabank business loan, or line of credit or credit card.

At the time of application, an insured person must be at least 18 and under 65 years of age, a resident of Canada and related to the business as:

• a sole proprietor
• a partner
• a guarantor
• a shareholder who owns at least 10% of the voting rights of a corporation
• a key employee* whose contributions are essential and without whom the eligible business would have difficulty operating.
  * Up to 10 persons may be insured with respect to any one eligible business entity.

For Comprehensive insurance coverage you must also be:

• Actively working at least 20 hours per week. If you are a seasonal worker, you must be capable of performing your regular duties for at least 20 hours per week; and
• Not receiving Disability benefits from any source

The price for this type of insurance coverage varies according to the insured person’s age, the type of coverage(basic or comprehensive), and the amount of coverage(s). Refer to our rate tables for pricing per $1,000 of coverage. 

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If your Insurance Coverage Amount is $50,000 or less, you can be immediately approved for Comprehensive coverage without having to answer any health questions.

If your Insurance Coverage Amount is greater than $50,000, you will need to answer a few simple health questions.

If further health information is required, you will be contacted to arrange a free paramedical exam where you may be asked to provide a blood and urine sample.

If you apply for Comprehensive Protection and are declined for health reasons, you will still be granted up to $50,000 of Comprehensive insurance coverage.

Scotia Business Loan Coverage Begins:

Your insurance coverage starts on whichever comes later—the date Scotiabank receives your signed and dated application, or the date specified in the Insurer’s approval letter, when approval is required or the date any portion of the insured loan is advanced, or funds made available.

You will receive a Certificate of Insurance and a confirmation letter verifying the effective date of your coverage in the mail if you are approved for coverage. If your application is not approved upon medical examination, you will be advised in writing.

Scotia Business Loan Coverage Ends:

• At age 65 for Disability, Hospitalization and Terminal Illness coverage
• At age 70 for Life insurance coverage
• The date of receipt of your request to cancel coverage
• The date your account is closed 

After you enrol, will receive a Certificate of Insurance that provides full details of your coverage, including all limitations and exclusions.

Some key conditions, exclusions, limitations and waiting periods apply. They include, but are not limited to:

• No benefit is paid if a death occurs within 24 months of the Effective Date of coverage due to a pre-existing condition.
• To be eligible for disability benefits you must be actively working at least 20 hours per week immediately prior to the date of Disability. 
  

In some cases, premiums can increase with age. The monthly insurance premiums are calculated based on the Insurance Coverage Amount and, for Insurance Coverage Amounts greater than $50,000, the age of each Insured Person at the end of each billing period.

To make a claim, follow these steps:

• Call us toll-free 1-855-753-4272, between 8am and 8pm (EST), Monday to Friday
• Have your Scotia Card number or account number ready
• Once your enrollment is confirmed, your customer service representative will send you a claims package (electronically or by mail)  for completion
• Send the completed forms and any supporting documents to the Insurer - contact details will be provided on the claim forms
• Once the assessment is done, you will be notified of the decision in writing by the Insurer

• You may cancel your coverage at any time. If you cancel within 30 days of the coverage effective (start?) date you will receive a full refund of any premium paid.

• Call 1-855-753-4272 between 8am and 8pm (EST), Monday to Friday, and a Customer Service Representative will be pleased to assist you.

• Scotia Business Loan Protection is underwritten by Canada Life Assurance Company under a Group Policy issued to the Bank of Nova Scotia.
• All coverage is subject to the terms and conditions outlined in the Certificate of Insurance which you will receive upon enrolment.
• Bank of Nova Scotia and its employees are not agents of Canada Life Assurance Company, nor can they waive or change any terms of the Scotia Business Loan Protection plan.
• The Bank of Nova Scotia receives an administration fee from the Insurer to distribute this insurance.