- What is Disability Insurance?
- What qualifies as a “disability”?
- Is Creditor Life Insurance not enough?
- Why do I need disability insurance when I have long and/or short term disability through my company?
- Do I need to answer any medical questions to be approved?
- Can I get joint coverage?
- How much does it cost?
- Will my rates ever change?
- Can I enrol even though I already have a Line of Credit?
- What if my Line of Credit changes?
- When does coverage begin?
- When does coverage end?
- Are there any conditions or limitations/exclusions?
Disability Insurance provides coverage for the payments on your Line of Credit. Benefit payments from the Insurer are applied directly against your Line of Credit and are designed to replace your regular contractual payment, up to a specified maximum.
Disability means you are prevented from performing all (or substantially all) of the essential duties of your own job and you do not engage in any other occupation or employment. For a more detailed explanation please refer to the Certificate of Creditor Insurance (PDF, 60K).
Creditor Life Insurance only provides coverage in the event of your death. Disability Insurance makes monthly payments for you, keeping your loan, and your credit rating, up-to-date while you recover.
Long term disability coverage from your employer usually only covers up to 70% of your income. With a disability you may be faced with medical and other unexpected expenses. Disability Insurance on your Line of Credit will help to alleviate the financial strain caused by those extra expenses, and/or reduced income, during a time when you are disabled.
Only if your Line of Credit is greater than $50,000 – there are two simple questions to answer. If your Line of Credit is $50,000 or less, you’ll be automatically approved, assuming you meet the eligibility criteria.
Yes, a maximum of two people can be covered – and there are special rates for joint coverage.
For most (revolving) Lines of Credit, the cost of Disability Insurance is based on your average monthly balance. For instalment arrangements the cost is based on your loan payment. Premiums are calculated monthly and billed to your Line of Credit account. Full details on rates, and how premiums are calculated, are provided in the Certificate of Creditor Insurance (PDF, 60K).
If the rate schedule ever changes you will be given 60 days notice.
Can I enrol even though I already have a Line of Credit?
Disability Insurance is available any time on your BMO Bank of Montreal Line of Credit. Simply call visit your nearest
BMO Bank of Montreal branch to apply.
If you refinance your Line of Credit (which includes any increase in your credit limit) then a new insurance application is required. This follows the same process as when you first applied for coverage.
Coverage begins when either your Line of Credit is approved or your insurance is approved, whichever comes later.
Coverage ends when:
Yes, as with any insurance policy there are some limitations and exclusions. Group insurance policies are designed to protect the benefits of all those insured and to keep the cost as reasonable as possible. For full information please see the Certificate of Creditor Insurance (PDF, 60K).What if my Line of Credit changes?
When does coverage begin?
When does coverage end?
Are there any conditions or limitations/exclusions?
