Why Creditor Insurance is Important

Most of us carry some debt—for a home or a car—or on a credit card. When life goes as planned, these debts fit into your budget nicely. It’s when something unexpected happens that debt can become an issue. That’s where creditor insurance comes in; it can help cover your debt to help prevent it from becoming a burden to you or your family.

Without creditor insurance, you may have to rely on savings or other insurance you have to repay debt—and this can dramatically reduce the money you or your family can put towards other needs.

How Creditor Insurance Works

If you die, become disabled and can’t work, or become critically ill due to a covered incident of cancer (life-threatening), heart attack or stroke, Creditor insurance can help reduce or pay off the balance on your insured mortgage, loan, line of credit or credit card. For your RBC Royal Bank credit card, it can also help protect you against involuntary unemployment¹ or loss of self-employment income².

• For HomeProtector, your Life and Critical Illness insurance premium is based on your age and the amount of your mortgage at the time of application. Your disability insurance premium is based on your age at the time of application and the amount of your current mortgage payment.
• For loans, your Life and Critical Illness insurance premium is based on your rate and your loan balance on the date the payment is due. Rates are determined based on the age of the borrower on the date of the insurance application. For disability insurance, premiums are calculated based on the rate per $100 of regular payment amount. Rates are determined based on the age of the borrower on the date of the insurance application.
• For lines of credit, your Life and Critical illness insurance premium is based on the rate and your average balance during that statement period. Rates are determined based on the age of the borrower on the payment due date. Premiums are based on the rate and your average daily balance during that statement period. For disability insurance, rates are determined based on the age of the borrower on the payment due date. Premiums are calculated based on the rate and 3% of the daily balance in each billing month. This is because the benefit payable will be calculated as 3% of the qualifying balance at the time you were disabled (to the allowable maximum).
• For credit cards, your premium is based on your rate and your insured balance.

Other Benefits of TIB Creditor Insurance

Here are a few other benefits that TIB creditor insurance can offer you:

• Easy to apply for: In most cases there is no medical exam. If you don’t qualify for other types of insurance, you may still be able to qualify for creditor insurance.
• Convenient: Your Insurance application can be completed at the same time as your Credit application.
• Review period: Take 30 days to review your coverage. During that time, you can cancel your coverage and get a full refund of any premiums paid. You can also cancel coverage any time.