Benefits of Universal Loan Insurance

Universal Loan Insurance is a comprehensive financial protection product available in Ontario, designed to safeguard individuals and families from the financial strain that can arise due to unforeseen disabilities. Offered by iA Financial Group, this insurance consolidates coverage for various loans into a single policy, ensuring that your financial obligations are met even if you’re unable to work due to illness or injury.

Universal Loan Insurance is coverage that protects all your loans in case of disability. It helps you keep making payments on your loans, even if you lose income because of a disability caused by an accident or illness. With this protection, you can cover all your family’s loans with just one policy. If you rent and don’t have a mortgage, you can even use it to cover your rent payments.

What is Universal Loan Insurance?

Universal Loan Insurance provides coverage for multiple types of loans under one policy in the event of a disability caused by an accident or illness. This means that if you experience a loss of income due to such circumstances, the insurance will help you continue making payments on your outstanding debts. Notably, this coverage isn’t limited to homeowners; renters can also use it to cover their rent payments. The policy is adaptable, allowing you to modify the loans covered as your financial situation evolves over time. Importantly, the benefits are non-taxable and are paid directly to you, regardless of any other disability insurance benefits you might receive.

In the event of a disability caused by an illness or accident, you receive a monthly, non-taxable benefit to help you make your debt payments, as well as your rent payments if you are a tenant. You can use it to cover several loans: mortgage (or rent), credit card, line of credit, student loan, car loan or rental, etc. The loans covered can be changed as your situation evolves over time.

Your benefits are not integrated, which means that they’re paid directly to you, even if you receive other disability insurance benefits, from your group insurance, for example.

Benefits of Universal Loan Insurance

• All your loans can be covered under the same policy

• Comprehensive Coverage: Protects a wide range of financial commitments, including mortgages, rent, credit cards, lines of credit, student loans, and vehicle loans or leases.
• Flexible Policy Management: Allows for adjustments to the loans covered, accommodating changes in your financial obligations over time.
• Non-Taxable Monthly Benefits: Provides monthly benefits that are not subject to taxation, ensuring you receive the full amount intended to cover your expenses.
• Cost-Effective Solution: Often more affordable than obtaining separate insurance policies for each loan, as it consolidates all your debts under one policy.
• Additional Built-in Benefits: Includes features such as coverage from day one for day surgeries or hospitalizations over 18 hours, waiver of premiums during total disability, and maintenance of coverage during temporary loss of full-time employment.

• Rent payments can be insured if you are not a homeowner
• Loans can be insured for up to $10,000 per month
• Coverage can be transferred from loan to loan throughout the life of the contract

It’s an ideal solution if you are:

• a family who wants insurance for all your family’s debts in case of disability, including your mortgage
• a tenant looking for coverage to insure rent and loan payments
• a young professional who has accumulated a few debts, like student loans or a car loan
• an employee who is already covered under a group disability insurance plan, but wants additional disability insurance coverage to help with loan payments and to reduce the impact of a loss of income

Key Considerations

Before opting for Universal Loan Insurance, it’s essential to understand the following:

• Eligibility Criteria: Generally, Canadian citizens aged between 18 and 59 who are employed for a minimum number of hours per week are eligible. Spouses not engaged in remunerative work may also qualify. Newcomers to Canada have specific conditions based on their duration of residency.
• Coverage Limits: The policy can insure loans up to $10,000 per month. Specific limits may apply to certain types of loans, such as rent or commercial loans, which may have a maximum benefit period of two years.
• Optional Riders: You can enhance your coverage with optional add-ons, including partial disability benefits, extended coverage for seasonal or contractual workers, return of premiums, and additional coverage for accidental death or dismemberment.

Universal Loan Insurance is creditor insurance for all workers who have loans. Whether you use it for mortgage payments, rent, a line of credit or car payments, this insurance offers you coverage for all your loans under one policy in case of disability.

In Ontario, the Financial Services Regulatory Authority of Ontario (FSRA) oversees insurance products, ensuring they meet regulatory standards and protect consumer interests.

Universal Loan Insurance offers a robust solution for managing multiple financial obligations under one policy, providing peace of mind and financial stability during challenging times. By understanding its features and benefits, you can make an informed decision to protect yourself and your loved ones from potential financial hardships resulting from unexpected disabilities.