Commercial Loan Insurance Plan
Our Commercial Loan Insurance Plan is an optional coverage designed to help protect the financial future of your business, your family and your employees. Our bundled coverage includes life insurance and accidental dismemberment and specific loss insurance that can help you manage your business financial obligations. The Commercial Loan Insurance Plan is designed to help you:
Maintain the continuity of your business activities- Protect your business relationships with customers, suppliers and employees
- Get approved quickly with our simple and convenient application process
Commercial Loan Insurance Plan coverage includes
Life insurance
If a key partner, guarantor or an owner were to pass away, life insurance can help pay down or pay off your loan amount.Your coverage:
- Customize coverage from 1% - 100% of your loan amount, up to a maximum of $1,000,000.
Accidental dismemberment and specific loss insurance
If a key partner, guarantor or an owner were to experience a covered specific loss due to an accidental injury, our coverage can help you pay down your loan amount.Your coverage:
- Up to $50,000
Who’s Eligible?
- A business owner, guarantor, or key partner whose role is essential to the business
- A Canadian Resident;
- Between 18-64 years old.
How can a Commercial Loan Insurance Plan help?
The unexpected loss of a key employee can be challenging in many ways. Having insurance coverage in place means that you can minimize the disruption to your business.
As a business owner, you carry a lot of weight on your shoulders. If something were to happen to you, optional life insurance coverage can help ease the burden on your family by paying down or paying off any insured loans you had taken out to run your business.
If you took a loan with a guarantor, insurance could mean you won’t have to refinance in the event of your guarantor’s death, as the loan could be fully or partially taken care of. That will help you minimize your cash flow disruption, giving you one less thing to worry about.
Commercial loan insurance plan FAQs
Personal Insurance can be an important part of your financial plan. A commercial loan insurance plan could reduce or pay-off your business debt, so you can use your personal insurance for other purposes. You have the comfort that your business loan can be fully or partially taken care of so that you or your loved ones can focus on things that matter.
Even if you have enough savings, you may not want to use it up during a time of uncertainties. It can be difficult enough dealing with the loss of the business owner or a key partner to continue normal business activities without worrying about depleting your savings. In many cases, commercial loan insurance can help you prepare for the unexpected.
- Most of the required information will come through your commercial loan approval process. You’ll have to answer health questions if your selected coverage amount is above $50,000.If you answer “no” to all the relevant health status questions, your coverage is approved without any more steps. If you answer “yes” to the health status questions, we’ll need to send your application to Canada Life for medical underwriting.
- Your monthly premium rate is based on your age, gender and smoking status when you apply for your insurance. The premium rate is calculated per $1,000 of the amount of insurance requested.Installment/Term Loans: Your premium does not increase with age but continues until the loan is fully repaid or refinanced. Your premium plus provincial sales tax (where applicable) is added to your premium rate.Revolving/Operating Loans: Your premium will automatically increase on the anniversary of the date your coverage starts if on that date, you are in a different age band. Provincial sales tax (where applicable) is added to your premium rate.You can find more details in the Certificate of Insurance Commercial Loan Insurance Plan
- If you refinance or replace your loan, your insurance will end on the date your loan is refinanced or replaced. If you want your new loan to be insured under the same plan, you’ll need to complete a new insurance application.Sometimes a new application could be declined because of a health condition or if you’re over the eligible age to apply (even if you are under the termination age). In these cases, you may be eligible for recognition of prior coverage (ROPC), which provides you with the same amount of coverage you had under the previous loan.Sometimes a new application could be declined because of a health condition or if you’re over the eligible age to apply (even if you are under the termination age). In these cases, you may be eligible for recognition of prior coverage (R O P C), which provides you with the same amount of coverage you had under the previous loan.
- As with most insurance products, the Commercial Loan Insurance Plan does include some limitations and exclusions. These are set out in the Certificate of Insurance you will receive on enrolment. Some of the main exclusions are that:No benefit will be paid if you die and your death is due to Intentional self-inflicted injury, suicide or attempted suicide (whether you are aware or not aware of the result of your actions, regardless of your state of mind), within the first 24 months following the Effective Date.No benefits will be paid if your claim is due to events directly or indirectly relating to, arising from or following your participation or attempted participation in a criminal offence, whether indictable, summary conviction or hybrid.For a full list of exclusions and limitations, please see the “what your coverage does not include – exclusions and limitations” section of the Certificate of Insurance.
- Absolutely! Coverage is optional and you can cancel your insurance at any time. If you cancel within 30 days of the coverage start date, you’ll get a full refund of any premium you’ve paid – the coverage will be considered never to have been in effect.Quebec residents can use the notice of rescission document received at the time of application.Would you like to cancel your insurance coverage? Talk to your branch representative.
For complaints regarding underwriting decisions or insurance claims please call Canada Life Team at 1-800-380-4572 and reference the BMO Commercial Loan Insurance Plan.
Submit a claim
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The Commercial Loan Insurance Plan is creditors’ group insurance. Canada Life, is the insurer of this product and can be reached at 1-800-380-4572 or www.canadalife.com