Scotia Loan Protection

Protection for the important things in life. Get coverage that can protect you and your family financially

What is Scotia Loan Protection?

This optional insurance helps pay off or maintain your loan payments in the event of illness, injury or death.

Scotia Loan Protection offers you two coverage bundle types:

Comprehensive Protection

Comprehensive Protection provides the following insurance coverages:

  • Life Coverage
  • Terminal Illness Coverage
  • Critical Illness Coverage
  • Disability Coverage, and
  • Job Loss Coverage

Basic Protection

Basic Protection coverage provides Life insurance coverage only.

Comprehensive Protection includes these five types of coverage:

Life Coverage

Can cover your outstanding loan balance, up to $300,000, if you pass away.

Terminal Illness Coverage

This benefit can cover your outstanding loan balance, up to a maximum of $300,000, if you are diagnosed with a covered Terminal Illness.

A Terminal Illness is an illness that has been determined by a Doctor in writing to likely result in death within one year of diagnosis.

Critical Illness Coverage

Can help cover your loan payments, up to $3,500 per month 2,3, if you are diagnosed with a covered Critical Illness prior to your 70th birthday. Coverage includes certain types or severities of cancer, heart attack or stroke.

Disability Coverage

Can help cover your loan payments, up to $3,500 per month2,3, if you become disabled.

Job Loss Coverage

Can help cover your loan payments, up to $3,500 per month2,3, if you involuntarily lose your job.

Who can apply for Scotia Loan Protection?

To be eligible to apply for Basic Protection under Scotia Loan Protection, you must meet all of the following criteria on the date of your application to enrol for insurance:

  • You must be at least 18 years old and less than 70 years old;
  • You must be a resident of Canada; and
  • You must be the principal Borrower, co-borrower or guarantor on a Scotiabank Loan that is in Good Standing and have agreed to the terms and conditions of the Loan.

To apply for Comprehensive Protection, you must also be:

  • Employed and actively working at least 20 hours per week4
  • Not receiving Disability benefits from any source.

To be eligible for Job Loss coverage, you must be:

  • A Permanent Employee and you must NOT be a Seasonal Employee.
  • A maximum of two people per eligible Scotiabank Loan can have insurance coverage.

Premiums and Discounts

The monthly Basic Protection premium is calculated for every $1,000 of your loan balance on the date your Scotia Loan Protection application is approved.

Your monthly Comprehensive Protection premium is calculated for every $1,000 of your insured loan balance for Life and Terminal Illness coverage and $100 of monthly equivalent insurable benefit for Critical Illness, Disability and Job Loss coverage on the date your Scotia Loan Protection application is approved.

You may also be eligible for a discount of up to 20% on your premiums. For more details, please refer to our Frequently Asked Questions below. Provincial sales tax will be added to your premium where applicable.

30-day ‘right to examine your coverage’ period

If you decide our loan 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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Frequently asked questions

Scotia Loan Protection is an optional insurance product that can help pay off your outstanding Scotia Auto Loan account balance or cover your monthly auto loan payments as a result of certain unexpected events, such as Disability, Job Loss, Critical Illness, Terminal Illness or Loss of Life.

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

*Not applicable to Scotia Retail Loans.

You can choose from two insurance bundles:

Comprehensive Protection Coverage:

  • Life and Terminal Illness coverage, which can pay off your outstanding Scotia Auto Loan account up to $300,000 if you are diagnosed with a Terminal Illness or pass away
  • Critical Illness, Disability and Job Loss coverage, which can make your auto loan payment for up to $3,500 per month. Critical Illness and Disability coverages can make monthly payments for up to 12 months. Job Loss coverage can make monthly payments for up to 6 months per occurrence. Overall maximum benefit is 12 months

Basic Protection Coverage:

  • Life coverage, which can pay off your outstanding Scotia Auto Loan account up to $300,000 if you pass away
  • Scotia Loan Protection insurance is only available for Scotiabank Auto Loans that originated from an Auto Dealership.
  • Coverage is available to new or existing Scotiabank Auto Loan Borrowers (maximum of 2 insured borrowers), who are 18 years of age to 69 years of age, are Canadian residents and who have a Scotiabank Auto Loan account in good standing.
  • To apply for Comprehensive Protection Coverage, you must be employed and actively working at least 20 hours per week.

For job loss coverage:
You must also be a Permanent Employee and not a Seasonal Employee.

For Comprehensive Protection:

The table below sets out the monthly Comprehensive Protection premium for every $1,000 of Insured Loan balance for Life and Terminal Illness coverage and $100 of monthly equivalent insurable benefit for Critical Illness, Disability and Job Loss coverage.

COMPREHENSIVE PROTECTION COVERAGE

 

Life and Terminal Illness

Critical Illness, Disability, Job Loss

Age

Premium Rate for Each Insured

Premium Rate for Each Insured

18 – 30

$0.29

$2.09

31 – 35

$0.31

$2.25

36 – 40

$0.33

$2.43

41 – 45

$0.38

$2.78

46 – 50

$0.47

$3.37

51 – 55

$0.60

$4.27

56 – 60

$0.78

$5.51

61 – 65

$1.00

$7.02

66 – 69

$1.00

$7.06

 

Here is an example:

You are 41 years old and Your Loan balance at time of application is $30,000 with a $470 monthly Loan Payment. Your monthly insurance premiums would be $24.47 (($0.38 x $30,000 ÷ $1,000) + ($2.78 x $470 ÷ $100)) plus any applicable sales taxes.

For Basic Protection:

The table below sets out the monthly Basic Protection premium for every $1,000 of Loan balance on the date Your Scotia Loan Protection application is approved.

BASIC PROTECTION COVERAGE

 

Life

Age

Premium Rate for Each Insured

18 – 30

$0.29

31 – 35

$0.31

36 – 40

$0.33

41 – 45

$0.38

46 – 50

$0.47

51 – 55

$0.60

56 – 60

$0.78

61 – 65

$1.00

66 – 69

$1.00


Here is an example:

Suppose you are 41 years old and your Loan balance at the time of application is $30,000. Your insurance premium would be $11.40 which is calculated as ($0.38 x $30,000 ÷ $1,000) plus any applicable sales taxes.

A premium reduction of up to 20% is available!

If you and another borrower on the same loan account applied for and are approved for insurance coverage, you could take advantage of the following discounts:

Coverage Type

Discount 

Both Borrowers have Comprehensive Protection coverage

20%

One Borrower has Basic Protection coverage and one Borrower has Comprehensive Protection coverage

18%

Both Borrowers have Basic Protection coverage

15%

  • Call us toll-free at 1-855-753-4272, 8am. – 8pm (EST), Monday to Friday

You can be immediately approved without having to answer any medical questions or take a medical exam.

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 or Critical Illness occurs within 12 months of the Effective Date of coverage due to a pre-existing condition.
  • To be eligible for Job Loss benefits you must be employed at least 180 consecutive days on a full-time basis for at least 20 hours each week immediately prior to the date of Disability or Job Loss. In addition, you must be a Permanent employee and not be a Seasonal Employee.
  • No benefit is paid for Job Loss if the Claimant became unemployed within 90 days of the Effective Date of coverage; or unemployment is the direct/indirect result of resignation, retirement from employment, or dismissal for cause, or a strike or lockout

Scotia Loan Protection Insurance Begins:

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

Scotia Loan Protection Insurance Ends:

  • Age 70 for Critical Illness, Disability, Job Loss and Terminal Illness coverage
  • Age 75 for Life insurance coverage
  • The date of receipt of your request to cancel coverage
  • The date your account is closed or refinanced for additional funds

Your premium will remain the same through the duration of your Scotiabank Auto Loan Term. If there is a change to your Scotia Loan Protection coverage or a change to your Scotiabank Auto Loan payment amount, your premium may be recalculated.

To make a claim, follow these steps:

  • Call us toll-free 1-855-753-4272, 8am - 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 coverage at any time. If you cancel within 30 days of your 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 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.
  • The insurance premium and applicable sales tax will be charged to the same account from which your loan payments are debited or from a different bank account you designate
  • 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 Loan Protection plan.
  • The Bank of Nova Scotia receives an administration fee from the Insurer to distribute this insurance.

Ways to contact us

Scotia Loan Protection

Call in by phone.
Mon-Fri (8:00am-8:00pm EST)

1-855-753-4272