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HomePersonal BankingWealth ManagementSmall BusinessCommercialCorporate & InstitutionalAbout BMO

Protection for your Instalment and Revolving Line of Credit

BMO Protection Plan insurance on your Instalment or Revolving line of credit can help cover your line of credit balance if you become critically ill or die, or can help cover your line of credit payments if you become disabled or as a result of involuntary job loss.

Protect your...

Instalment Line of Credit

Turning a new page in life can be exciting. You're ready to take on a line of credit but there's no way of knowing what tomorrow brings. Life is full of 'what ifs'.The truth is: 'good' isn't always the word before 'news'. We can't change that, but we can help you plan for it, so you can live a life with fewer 'what ifs' and more 'I knows'.

Insurance on your line of credit can help cover your line of credit balance or payments if you become critically ill or disabled, lose your job or die.

Add insurance at the time you take out a Line of Credit or any time after your Line of Credit is in place.

Available on Homeowner ReadiLine, Personal Lines of Credit, Homeowner's Line of Credit, and Student Line of Credit.

Who can apply?

Up to 8 borrowers can apply for coverage.

On the date you apply for insurance you must be:

For all types of coverage,

  • at least 18,
  • the borrower or co-borrower, and
  • a Canadian resident.

For life insurance, you must also be under 65.

For critical illness insurance (combined with life), you must also be:

  • under 55, and
  • applying for or already insured for life insurance under this Plan.

For disability insurance you must also be:

  • under 65,
  • regularly working at least 30 hours a week and able to perform the regular duties of your job, and
  • for seasonal workers, you must be employed, working at least 25 hours a week and able to perform the regular duties of your job.

For job loss insurance (combined with disability), you must also be:

  • continuously employed for 6 months with the same employer
  • under 55,
  • eligible to receive Employment Insurance (EI), and
  • applying for or already insured for disability insurance under this Plan.

You cannot apply for job loss insurance if you are:

  • in receipt of a written notice of termination,
  • self-employed, or
  • an independent contractor.

Balance Protection (Life Insurance and Critical Illness Insurance)

Benefit on an approved claim

Reduces or pays off your instalment line of credit balance up to the Maximum Insurable Limit of:

  • $600,000 in Life Insurance, in the event of your death
  • $450,000 in Critical Illness Insurance in the event of a covered critical illness including cancer, heart attack, coronary artery bypass surgery, or a stroke

Note: Critical Illness is only available with life insurance. Critical Illness cannot be purchased by itself.


Payment Protection (Disability and Job Loss Insurance)

Benefit on an approved claim

Fully or partially covers your regular instalment line of credit payments if you become disabled or lose your job, up to the Maximum Insurable Limit of:

  • $3,000 a month for Disability
  • $3,000 a month for Job Loss

Note: Job Loss is only available with disability insurance. Job Loss cannot be purchased by itself.

Disability or Disabled means any medical condition that prevents the insured from performing substantially all of the essential duties of the job. 

Job Loss means that the insured is collecting Employment Insurance benefits because of layoff, dismissal without cause, unionized labour dispute, legal strike, or lock out.


What percent of coverage can I choose?

You can choose to insure 100% or 50% of your instalment line of credit amount , and 100% or 50% of your instalment line of credit payment, up to the Maximum Insurable Limit.

You cannot have more critical illness coverage than life coverage. You cannot have more job loss coverage than disability coverage.  


How much will insurance coverage on my instalment line of credit cost?

Your monthly premium rate is based on your age on the Insurance Application Date and will not change as you age. There are single and multi-rates per coverage type. Your premium, plus provincial sales tax (if applicable) is added to your instalment line of credit payment on the payment due date.

The premium rate calculation for Balance Protection is calculated for every $1,000 of coverage.

The premium rate calculation for Payment Protection is calculated for every $100 of coverage.

There are separate premium Rate Tables for Balance Protection and Payment Protection.

For further details please refer to the Certificate of Insurance BMO Protection Plan Mortgage and Line of Credit

For complete coverage details

Please refer to the sample Certificate of Insurance BMO Protection Plan Mortgage and Line of Credit, for complete information for each coverage type including, eligibility requirements, pre-existing condition clause, claims process and what Sun Life will pay on an approved claim, and what are the important details of the coverage (including limitations and exclusions).

You can cancel coverage on your BMO line of credit at any time. If you cancel within 30 days of the coverage start date you will get a full refund of any premium you have paid and the coverage will never have been in place.

The BMO Protection Plan for Lines of Credit is underwritten by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.


Revolving Line of Credit

Turning a new page in life can be exciting. You're ready to take on a line of credit but there's no way of knowing what tomorrow brings. Life is full of 'what ifs'.The truth is: 'good' isn't always the word before 'news'. We can't change that, but we can help you plan for it, so you can live a life with fewer 'what ifs' and more 'I knows'.

Insurance on your line of credit can help cover your line of credit balance or payments if you become critically ill or disabled, lose your job or die.

Add insurance at the time you take out a Line of Credit or any time after your Line of Credit is in place.

Available on Homeowner ReadiLine, Personal Lines of Credit, Homeowner's Line of Credit, and Student Line of Credit.

Who can apply?

Up to 8 borrowers can apply for coverage.

On the date you apply for insurance you must be:

For all types of coverage,

  • at least 18,
  • the borrower or co-borrower, and
  • a Canadian resident.

For life insurance, you must also be under 65.

For critical illness insurance (combined with life), you must also be:

  • under 55, and
  • applying for or already insured for life insurance under this Plan.

For disability insurance you must also be:

  • under 65,
  • regularly working at least 30 hours a week and able to perform the regular duties of your job, and
  • for seasonal workers, you must be employed, working at least 25 hours a week and able to perform the regular duties of your job.

For job loss insurance (combined with disability), you must also be:

  • Continuously employed for 6 months with the same employer
  • under 55,
  • eligible to receive Employment Insurance (EI), and
  • applying for or already insured for disability insurance under this Plan.

You cannot apply for job loss insurance if you are:

  • in receipt of a written notice of termination,
  • self-employed, or
  • an independent contractor.

Balance Protection (Life Insurance and Critical Illness Insurance)

Benefit on an approved claim

Reduces or pays off your revolving line of credit balance up to Maximum Amount Covered of:

  • $300,000 in Life Insurance, in the event of your death
  • $300,000 in Critical Illness Insurance in the event of a covered critical illness including cancer, heart attack, coronary artery bypass surgery, or a stroke

Note: Critical Illness is only available with life insurance. Critical Illness cannot be purchased by itself.


Payment Protection (Disability Insurance and Job Loss Insurance)

Benefit on an approved claim

Fully or partially covers your regular payments under your revolving line of credit if you become disabled or lose your job, up to the Maximum Payment Covered of:

  • $1,500 a month for Disability
  • $1,500 a month for Job Loss

Note: Job Loss is only available with disability insurance. Job Loss cannot be purchased by itself.

Disability or Disabled means any medical condition that prevents the insured from performing substantially all of the essential duties of the job.

Job Loss means that the insured is collecting Employment Insurance benefits because of layoff, dismissal without cause, unionized labour dispute, legal strike, or lock out.


What percent of coverage can I choose?

You can only get 100% coverage on your revolving line of credit up to the Maximum Amount/Payment Covered.


How much will insurance coverage on my revolving line of credit cost?

Your monthly premium rate is based on your age each statement date and will change as you age. The rates are different for single and multi-rate coverage.

Your premium, plus provincial sales tax (if applicable) is charged in arrears and added to your revolving line of credit balance on each statement date.

Your monthly premium rate is calculated for every $1,000 of coverage.

For a detailed Rate Table that shows the monthly cost for every $1,000 of coverage, please refer to the Certificate of Insurance BMO Protection Plan Mortgage and Line of Credit


For complete coverage details

Please refer to the sample Certificate of Insurance BMO Protection Plan Mortgage and Line of Credit, for complete information for each coverage type including, eligibility requirements, pre-existing condition clause, claims process and what Sun Life will pay on an approved claim, and what are the important details of the coverage (including limitations and exclusions).

You can cancel coverage on your BMO line of credit at any time. If you cancel within 30 days of the coverage start date you will get a full refund of any premium you have paid and the coverage will never have been in place.

The BMO Protection Plan for Lines of Credit is underwritten by Sun Life Assurance Company of Canada, a member of the Sun Life Financial group of companies.