Scotia Line of Credit Protection insurance

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 four types of insurance coverages to choose from: Disability, Job Loss, 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 four 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.

Job Loss: This insurance coverage can pay a monthly benefit of up to $3,000 per month, for up to 6 months per claim, or 12 months total lifetime if your employment is involuntarily terminated by your employer or you are permanently laid off.

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).

Note:

• To apply for Critical Illness insurance coverage, you must already have Scotia Line of Credit Life insurance coverage or also apply for Scotia Line of Credit Life insurance coverage.
• To apply for Scotia Line of Credit Job Loss insurance, you must already have Scotia Line of Credit Disability insurance coverage or also apply for Scotia Line of Credit Disability insurance coverage.
  
• To apply for Scotia Line of Credit Disability or Job Loss coverage, you must also be Actively Working
  

• 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.

To apply for Disability or Job Loss coverage, you must also be Actively working

Actively working which means you are:

• A Permanent Employee or self-employed for at least 20 hours a week; or
• On maternity or parental leave and expect to return to the regular duties of your employment or occupation for at least 20 hours a week at the end of your leave; or
• Employed seasonally for at least 20 hours a week during the work season, which has a beginning and end, and you have a proven work history for at least one previous season as a seasonal employee, you expect to return to the same occupation the next season and you are currently capable of performing the regular duties of your seasonal employment.

A premium reduction may apply if there are multiple coverages or multiple insureds.

Single Insured cost:

• The cost of Life and Critical Illness insurance coverage is calculated based on the premium rates for each separate coverage type less 15%.

Multiple Insureds cost:

• The cost of Joint coverage is calculated based on the premium rate applicable for the oldest Insured and multiplying the premium rate by 1.70.  Joint coverage means both the Insureds have the SAME coverage types. Each has Life insurance, or each has Life and Critical Illness insurance.
• The cost of Dual coverage is calculated based on the premium rate applicable for each Insured less 15%. Dual coverage means each Insured has DIFFERENT coverage types. For example, one Insured has Life Insurance only and the other Insured has Life and Critical Illness insurance.

Note: Joint and Dual coverage is not applicable to Disability coverage or Job Loss coverage.

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 sales tax):

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:

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

How Job Loss Insurance premiums are calculated:

Your monthly Job Loss 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 Job Loss Insurance:

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

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 and Job Loss coverage only.

• Based on the Job Loss coverage rate table, her premium rate is $1.40/$100 of monthly benefit.
• Based on the Disability coverage rate table, her premium rate is $3.07/$100 of monthly benefit.
• Jane’s Disability and Job Loss premium rate is $4.47. Which is calculated as ($1.40 + $3.07).

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

Jane's Insurance premium for the January billing cycle is $17.86 + 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 sales tax):

The premium rate for two Insureds, each with Life coverage, is  based on the age of the oldest Insured and multiplied 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:

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

Example (Two Insureds, each with Life coverage only):

John is 47 years old and Mary is 35 years old and each is enrolled in Scotia Line of Credit Protection Insurance, Life coverage only. John is the oldest Insured.

Assuming the same account activity, the premium calculation for Joint Life coverage for both John and Mary is $13.24 x 1.70 = $22.51

John and Mary’s premium for the August billing cycle is $22.51 + 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 sales tax):

Here’s an example: (Single Insured, Life and Critical Illness coverages):

David is 52 years old and is the primary borrower and is enrolled in Scotia Line of Credit Protection Insurance, Life and Critical Illness coverage only.

• Based on the Life coverage rate table, his premium rate is $0.81/$1000; and
• Based on the Critical Illness coverage rate table, his premium rate is $1.90/$1000
• David’s Life and Critical Illness premium rate is $2.3035. Which is calculated as ($0.81+$1.90) less 15%. 

For the month of March, David has the following balances over 31 days:

David's Insurance premium for the March billing cycle is $28.02 + provincial sales tax, where applicable

Example (Joint):

David is 52 years old and Pam is 35 years old and both are enrolled in Scotia Line of Credit Protection Insurance, each with Life and Critical Illness coverage. David is the oldest Insured.

Assuming the same account activity, the premium calculation for Joint Life and Critical Illness coverage is $28.02 (David’s premium calculation) x 1.70 = $47.63, + sales tax, where applicable.

Example (Dual):

David is 52 years old and Pam is 35 years old and each enrolled in Scotia Line of Credit Protection insurance. David is enrolled in Life and Critical Illness coverage and Pam is enrolled in Life coverage only.

Assuming the same account activity, the calculation for David’s Life and Critical Illness coverage is $28.02

• Based on the Life coverage premium rate table, Pam’s applicable premium rate is $0.32/$1000
• Pam’s actual Life premium rate is $0.272, calculated as $0.32 less 15%.

For the month of March, assuming the same account activity, Pam’s premium is calculated as:

Pam’s Insurance premium for the March billing cycle is $3.30 + sales tax, where applicable

David and Pam’s combined Scotia Line of Credit Protection premium is $28.02 (David’s premium) + $3.30 (Pam’s premium) = $31.32 + sales tax, where applicable

• 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 or Disability and Job Loss insurance coverage 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 Job Loss 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 70 for Critical Illness, Disability and Job Loss coverage;
• At age 75 for Life 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: Tel: 1-800-387-2671, www.canadalife.com 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.