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Line of Credit Disability and Disability Plus Job Loss Insurance
How would you make your regular Line of Credit payments if you become unable to work due to an accident, medical condition or because you lost your job? Add Disability Insurance or Disability Plus Job Loss Insurance to your BMO Line of Credit to provide additional coverage against life's uncontrollable circumstances.
Line of Credit Disability Insurance
Disability Insurance provides financial security in the face of inability to work or perform your normal duties 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
- Semi-Revolving Instalment Lines of Credit
How much will it cover?
The maximum monthly amount covered is $1,500. However, for the instalment portion of your Homeowner ReadiLine, the maximum monthly amount covered is $3,000. Please refer to the Certificate of Creditor Insurance (PDF, 60K) 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), and
- Be a Canadian resident
How much does it cost?
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).
When can I apply?
You may apply for Disability Insurance at any time during the life of the loan.
Automatic Approval
For Lines of Credit $50,000 and less, approval for Disability Insurance is automatic assuming you meet all the eligibility criteria.
To Apply: The easiest way to apply is to visit your nearest BMO Bank of Montreal branch.
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Lines of Credit 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 involuntary job loss. This additional coverage makes the payments to your Line of Credit should you lose your job or be unable to work through no fault of your own. Having this ‘safety net’ allows you to focus on your future while your insurance takes care of your current payments, for up to 6 months.
Who is eligible?
In addition to meeting the eligibility requirements for 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
- In addition, you must not:
- Be self employed, an independent contractor or working for a family business or a business in which you have a controlling interest, or
- 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 (PDF, 60K)
When does coverage end?
The Job Loss component of this insurance provides coverage only until you turn 55 years of age. At that point your policy changes to Disability Insurance alone, which continues to age 70.
To Apply: The easiest way to apply is to visit your nearest BMO Bank of Montreal branch.
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