Disability and Disability Plus Job Loss Insurance
How would you make your monthly Line of Credit payments if you become unable to work due to a medical disability or layoff? Add Disability Insurance or Disability Plus Job Loss Insurance to your BMO Line of Credit to provide additional coverage against life's uncontrollable circumstances.
Disability Insurance provides financial security in the face of inability to work due to illness or injury by covering the payment on your Line of Credit. Disability Insurance works when you can't.
Which Lines of Credit can be insured by Disability Insurance?
Disability Insurance is available on:
- Personal Lines of Credit
- Student Lines of Credit
- Homeowner's Lines of Credit
- Homeowner ReadiLine
- Small Business Financing
How much will it cover?
The maximum monthly amount is $1,500 and $3,000 for the installment portion of the Homeowner Readiline. For most Lines of Credit, the insured amount is 2% of the average monthly balance at date of disability.
If you have an instalment arrangement on your Line of Credit, the insured amount is your monthly (or equivalent) contractual payment.
There are some limitations on the amount covered. Please refer to the Certificate of Creditor Insurance (80KB - PDF) for full details.
Who is eligible?
Any borrower, or co-borrower, on a Bank-approved Line of Credit may apply
At time of application, each person (maximum of two) must:
- Be working a minimum of 25 hours per week
- Be between the ages of 18 and 64, inclusive
- Not be borrowing for business purposes
- Be a resident of Canada for tax purposes
How much does it cost?
The cost of Disability Insurance is based on the calculated monthly loan payment. Premiums are calculated monthly and billed to your Line of Credit account.
When can I apply?
You may apply for Disability Insurance at any time.
For Lines of Credit $50,000 and less approval for Disability Insurance is automatic assuming you meet all the eligibility criteria (listed above).
Disability Plus Job Loss Insurance
Disability Plus Job Loss Insurance offers you all the benefits of Disability Insurance with the added protection of insurance against job loss. The additional job loss insurance provides monthly payments to your Line of Credit should you become involuntarily unemployed. Let BMO help protect you in the face of job loss so that you can focus on your future while your insurance takes care of your current payments.
Who is Eligible?
In addition to meeting eligibility requirements of Disability Insurance, you must also:
- Be between 18 and 54 years old, inclusive
- Have been continuously employed for 6 months with the same employer and be eligible to receive Employment Insurance benefits
- Not be self employed, an independent contractor or working for a family business or a business in which s/he has a controlling interest
- Not be aware of your pending unemployment
How much does it cost?
Disability Plus Job Loss Insurance works on the same basis as Disability Insurance, but costs slightly more as you are getting additional coverage. Full details on rates and how premiums are calculated are provided in the Certificate of Creditor Insurance (60KB - PDF)
When does coverage end?
The job loss component of this insurance provides coverage until you turn 55 years old. At that point your policy changes to Disability Insurance, which continues to age 70.