Scotia Line of Credit Protection

Scotia Line of Credit Protection insurance can help you stay on track financially and can do more than just protect the ‘things’ in your life.

What is Scotia Line of Credit Protection?

Scotia Line of Credit Protection can help pay the outstanding balance on your Scotiabank Line of Credit account if you are diagnosed with a covered critical illness or if you pass away. It can also pay a monthly benefit in the event that you become disabled.

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Scotia Line of Credit Protection offers three types of coverage.

Critical Illness Coverage

This coverage can pay the outstanding balance on your Scotia Line of Credit account up to $150,000 per insured line of credit, and up to $300,000 for all insured lines of credit combined, in the event you are diagnosed with a covered critical illness (such as heart attack, stroke and cancer).

Life Coverage

This coverage can pay the outstanding balance on your Scotia Line of Credit account, up to a maximum of $500,000 for all insured lines of credit combined, if you pass away.

Disability Coverage

This disability coverage can pay a monthly benefit of up to $3,000 for up to 24 months per claim or 48 months total lifetime, in the event you become disabled and unable to work.

Who can apply for Scotia Line of Credit Protection?

You’re eligible to apply for Scotia Line of Credit Protection if you are:

  •  A resident of Canada
  •  Aged 18 to 64
  • A borrower, a co-borrower or a guarantor who has agreed to the terms and conditions on a Scotiabank Line of Credit account that is in good standing

To apply for Critical Illness coverage, you must also apply for life insurance coverage.

Premiums and Discounts

Your premium is billed monthly to your line of credit account based on your age and daily balance during the billing period.

A 15% discount applies for a single borrower with Life and Critical Illness. For joint coverage, a discount will also apply on Life and Critical Illness.  To learn more about how your premiums are calculated, watch this video, or check out our frequently asked questions to see our detailed premium rate tables. 

30-day ‘right to examine your coverage’ period

If you decide our line of credit insurance is not right for you, cancel within 30 days to receive a full refund of any premium paid. Call us today to enrol worry-free.

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Scotia Line of Credit Protection

Insurance coverage when and where you need it.

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What’s an insurance premium?

Find out how premiums are calculated for Scotia Line of Credit Protection.

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Understand your protection needs and identify any potential gaps with our Protection Planner tool. Not sure how to use the planner?  
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Frequently asked questions

Scotia Line of Credit Protection is an optional insurance product that covers the monthly payments or entire balance of your Line of Credit in the event you are unable to pay as a result of an unexpected life event. Coverage can help provide financial support when you and your family need it most.

There are three types of insurance coverages to choose from: Disability, Critical Illness and Life.

A maximum of two borrowers per line of credit can apply for insurance coverage. You do not need to apply for this optional insurance coverage to be approved for a line of credit.

You have three insurance coverages to choose form:

 

Disability: This insurance coverage provides a maximum benefit of up to $3,000 plus your disability premium per month for up to 24 months towards your Line of Credit balance.

Life: This insurance coverage can pay off your outstanding Scotiabank Line of Credit account balance up to $500,000 per account or up to $500,000 for all accounts combined if you pass away.

Critical Illness: This insurance coverage can pay off your outstanding Line of Credit account balance up to $150,000 per account or up to $300,000 for all accounts combined if you are diagnosed with a specific critical illness. (e.g. Heart Attack, Stroke or Cancer).

  • To be eligible for coverage you must be the principal Borrower, co-borrower or guarantor on the Scotiabank Line of Credit account, be between the ages of 18 to 64 years old and a resident of Canada. Your account must be in good standing and not be restricted

Discounts are available as follows:

-          Single borrower:  Up to 15% when you select Life & Critical Illness coverages

-          Joint Borrower: 

Life Insurance: the cost of joint coverage is calculated based on the age of the oldest insured and multiplying the rate by 1.70

Critical Illness Insurance: the cost of joint coverage is calculated based on the age of the oldest insured and multiplying the rate by 1.70

 

How Disability Insurance premiums are calculated:

Your monthly disability premium is based on your age at the end of each billing period and the daily balance on your line of credit account during the billing period multiplied by 3% to determine the monthly insurable benefit. The monthly insurable benefit is then multiplied by the applicable daily premium rate to determine the insurance cost.

The cost of Disability Insurance:

The table below sets out the monthly premium rate for every $100 of monthly insurable benefit (not including provincial sales tax):

Age

Premium Rate for Each Insured

18-29

$1.60

30-35

$1.95

36-40

$2.50

41-45

$3.07

46-50

$3.65

51-55

$4.39

56-60

$5.46

61-65

$6.41

66-69

$7.00

 

Here’s an example:

Jane is 42 years old and is the primary borrower and is enrolled in Scotia Line of Credit Protection Insurance, Disability coverage only. Based on the Disability Coverage rate table, her premium rate is $3.07/$100 of monthly benefit.

For the month of January, Jane has the following balances over 31 days:

Daily Balance

 

Insurable Benefit

 

# of Days

 

Daily Premium Rate

($3.07 /$100) X 12 / 365

 

Premiums

$15,000

X

3%

X

10

X

$0.00100931

=

$4.54

$13,000

X

3%

X

15

X

$0.00100931

=

$5.90

$10,000

X

3%

X

6

X

$0.00100931

=

$1.82

 

 

 

 

 

 

 

 

$12.26

Jane's Insurance premium for the January billing cycle is $12.26 + provincial sales tax, where applicable.

 

How Life Insurance premiums are calculated:

 

·        Your monthly life insurance premium is based on your age at the end of each billing period and the daily balance on your line of credit account during the billing period.

·        Premiums are calculated on the daily balance up to your approved insurance coverage amount.

The cost of Life Insurance:

The table below sets out the monthly premium rate for every $1,000 of daily balance during the billing period (not including provincial sales tax):

Age

Premium Rate for Single Coverage

18-30

$0.25

31-35

$0.32

36-40

$0.36

41-45

$0.49

46-50

$0.64

51-55

$0.81

56-60

$1.00

61-65

$1.43

66-69

$2.55

 

 

·        The cost of joint coverage is calculated based on the age of the oldest insured person and multiplying the rate by 1.70.

Here’s an example:

John is 47 years old and is the primary borrower and is enrolled in Scotia Line of Credit Protection Insurance, Life coverage only.

Based on the Life coverage rate table, his premium rate is $0.64/$1000

For the month of January, John has the following balances over 31 days:

Daily Balance

 

# of Days

 

Daily Premium Rate

($0.64 /$1000) X 12 / 365

 

Premiums

$20,000

X

10

X

$0.00002104

=

$4.21

$21,000

X

15

X

$0.00002104

=

$6.63

$19,000

X

6

X

$0.00002104

=

$2.40

 

 

 

 

 

 

$13.24

John's life Insurance premium for the January billing cycle is $13.24 + provincial sales tax, where applicable.

 

How Critical Illness Insurance premiums are calculated:

·       Your monthly critical illness premium is based on your age at the end of each billing period and the daily balance on your line of credit account during the billing period.

·        Premiums are only calculated on the daily balance up to your approved insurance coverage amount.

The cost of Critical Illness Insurance:

The table below sets out the monthly premium rate for every $1,000 of daily balance during the billing period (not including provincial sales tax):

Age

Premium Rate for Single Coverage

18-30

$0.46

31-35

$0.51

36-40

$0.59

41-45

$0.92

46-50

$1.39

51-55

$1.90

56-60

$2.60

61-65

$3.40

The cost of joint coverage is calculated based on the age of the oldest insured person and multiplying the rate by 1.70.

  • In Person – Make an Appointment at a Branch – Find a Branch
  • By Phone – Monday to Friday – 8:00 a.m. – 8:00 p.m. ET – 1 -855-753-4272
  • Apply Online – Sign on to – Scotia Online
  • If you are applying for Life insurance coverage or Life and Critical Illness insurance coverage on your Line of Credit, you will be approved for coverage up to $150,000 without answering health questions. For coverage above $150,000, you are required to answer health questions.
  • If you are applying for Disability Insurance on your Line of Credit, you are approved for coverage up to $50,000 without answering health questions. For coverage above $50,000, you are required to answer health questions.
  • If you answer ‘Yes” to any of the Health Questions, the Insurer will contact you to review your health information.

After you enrol, you 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:

  • Pre-existing conditions are not covered. A pre-existing condition is defined as any sickness or injury for which You or the Co-borrower, as applicable, received medical advice, consultation, investigation, diagnosis, or for which Treatment was required or recommended by a Doctor, during the 12 months prior to the Effective Date of Your coverage
  • Benefits are not payable if the death resulted directly or indirectly from intentionally self-inflicted injury.
  • For Critical Illness insurance, certain conditions and forms of cancer are not covered. Benefit is not payable if cancer is diagnosed within 90 days of the effective date of coverage.
  • There is a 60-day qualifying period before benefit payments commence for Disability insurance and no benefits are paid for the qualifying period.

 


Scotia Line of Credit Begins:

On the effective date indicated on the Schedule of Coverage You will receive with your Certificate of Insurance within 30 days of your application approval

Scotia Line of Credit Ends:

  • At age 65 for Critical Illness coverage;
  • At age 70 for Life and Disability coverage;
  • The date of receipt of your request to cancel coverage; or
  • The date your account is closed, and no balance is owing, frozen or otherwise blocked from usage.

Since premiums are charged based on your Line of Credit account balance, it the balance is $0, premiums are not billed for as long as the balance remains as $0.

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

 

For more information, see the video How to Make a Claim 

Your Insurance coverage ends automatically when you close your Scotia Line of Credit Account and there is no outstanding balance. If there is a remaining balance on your Account, Insurance premiums will continue to be charged and your insurance coverage will remain in force until there is no balance remaining.  Once the balance reduces to zero, your insurance coverage will end.

  • You may cancel your coverage at any time. If you cancel within 30 days of the coverage effective 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 Line of Credit Protection is underwritten by The 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.
  • The insurance premium and applicable sales tax will be charged to your Scotiabank line of credit account
  • The Bank of Nova Scotia and its employees are not agents of The Canada Life Assurance Company, nor can they waive or change any terms of the Scotia Line of Credit Protection plan.
  • The Bank of Nova Scotia receives an administration fee from the Insurer to distribute this insurance.

Ways to contact us

Enroll today 

Plan for tomorrow with more confidence.

Apply online – Sign in to Scotia online

By Phone

Mon-Fri (8:00am-8pm EST)

1-855-753-4272, By Phone

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We look forward to taking care of you every step of the way.

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