Credit protection insurance
Protect your finances when life changes unexpectedly
Understanding credit protection insurance
What is credit protection insurance?
Credit protection insurance is a type of insurance coverage that helps pay your mortgage, loans, lines of credit or credit cards when unforeseen events like accidents, disability, illness or unemployment affect your ability to pay for them.
What does credit protection insurance cover?
Policies are typically taken out at the time you sign up for a loan or credit card, and cover you and any applicable co-borrower(s) for your outstanding balance. You can choose to pay the premium monthly, as a lump sum or combined with loan payments (depending on the loan type).
What is not covered by credit protection insurance?
Credit protection insurance doesn’t cover all situations. Some common exclusions may include pre-existing medical conditions, self-inflicted injuries or job loss due to a resignation or seasonal layoff.
How credit protection insurance can help you
Credit protection insurance provides reassurance, knowing that your debts won’t be an extra burden during a difficult time. Our products are designed for flexibility with a wide range of options to help you get the credit protection solution that best suits your needs.
Financial safety
Get the financial stability you need when unforeseen events impact your cash flow.
Cost-effective financial protection
Insure your overall loan portfolio with premiums that won’t break the bank.
Comprehensive financial protection
Your coverage supplements existing life or disability policies.
Helps you get back on track following an illness
Put the focus on your well-being instead of on paying bills.
Types of credit protection insurance
Mortgage, loan and line of credit protection
Mortgage, loan and line of credit insurance can help cover debt obligations in the event of unexpected circumstances.
- Helps cover what’s still owing
- Keeps payments on track if you’re unable to pay
Credit card balance protection
Credit card protection covers your credit card balances in the event of death, disability, job loss, hospitalization, unemployment or critical illness.
- Covers your outstanding balance
- Pays off or makes monthly payments when you can’t
Coverage options and benefits
Life insurance coverage
Reduces or eliminates loan or credit card balances in the event of death
Disability insurance coverage
Makes monthly loan or credit card payments for a set amount of time
Accidental death coverage
Reduces or eliminates loan or credit card balance in the event of death as a direct result of a covered accident
Critical illness coverage
Reduces or eliminates loan or credit card balance in the event of a covered illness
Job loss coverage
May cover loan or credit card payments for a specified amount of time if you lose your job
How Securian Canada’s credit protection insurance works
Loan insurance
Credit card balance protection insurance
Mortgage insurance
Line of credit insurance
How to apply for credit protection insurance
Securian Canada credit protection insurance plans can only be purchased through your bank, credit union, finance company or other lender.
- Get in touch with your lender or a Securian Canada partner.
- Choose the type of credit protection you need: mortgage, line of credit, loan protection insurance, etc.
- Complete an application.
- If approved, premiums are usually added to your monthly loan bill.
If you have any questions about how to apply, reach out and we’ll be happy to help you.
FAQs
Who typically needs credit protection insurance?
Credit protection insurance is typically recommended for anyone with a mortgage, line of credit or credit card balance that wants to ensure that their payments are continued if they fall ill, have an accident, lose their job or pass away. It can be especially helpful for single-income families, self-employed people, retirees with debts or people without life insurance or disability coverage.
What type of insurance is credit protection insurance?
Credit protection insurance is an optional type of insurance that can provide benefits payable to your financial institution if an unexpected life event affects your ability to make payments on your loan(s). A policy might cover a mortgage, loan, line of credit or credit card balance if you are diagnosed with a critical illness or become disabled and can’t work, lose your job or pass away. Credit protection insurance is usually offered by your lender when you apply for credit.
How much does credit protection insurance typically cost?
The price of credit protection insurance depends on factors like your age, the type of debt being insured, and the lender offering the policy. In some cases, premiums are calculated based on your outstanding balance, meaning costs can rise or fall over time depending on how you use your credit. Because coverage, costs, exclusions and conditions can vary between providers, it’s important to review your options carefully before applying.
How is credit protection insurance different from traditional life insurance?
Credit protection insurance differs from life insurance in how it is paid out and what it covers. Life insurance is designed to pay a lump sum to your beneficiaries when you die, that can be used however they wish. Credit protection insurance is linked to a specific debt such as a mortgage, loan or line of credit, with the benefits paid directly to the lender.
Life insurance is usually more flexible, but credit protection insurance is often easier to get and can be added on when applying for credit.
Who typically pays for credit protection insurance?
Credit protection insurance is typically paid for by a person who takes out a mortgage or other loan if they apply for a policy to protect their balance. If an unexpected life event impacts their ability to pay back the loan, credit protection insurance can help cover their outstanding balance.
How can credit protection insurance help if I’ve lost my job?
If you lose your job and can’t make your payments on a mortgage, line of credit, credit card or other loan, credit protection insurance may cover them for you, while you get back on your feet.
What is not covered by credit protection insurance?
Credit protection insurance doesn’t cover all situations and exclusions and limitations can vary depending on the policy and lender.
Some common exclusions may include things like pre-existing medical conditions, self-inflicted injuries or high-risk activities, or unemployment resulting from a resignation, dismissal with cause or seasonal layoff. Some policies might also not cover injuries related to alcohol or drug impairment or criminal activity.
How do I submit a credit protection insurance claim?
To initiate a credit protection insurance claim, please contact your financial institution for guidance in completing and submitting the required claim documentation.
How can I check the status of my credit protection insurance claim?
If your claim was submitted online, you can check the status of your credit protection insurance claim by logging in to our Creditor Insurance Digital Claims Portal.
If your claim was submitted via a paper form through a bank, credit union, or other lender, please give us a call.
Helping you build a secure tomorrow
With more than 70 years of experience, we provide practical, life-ready insurance products for all Canadians. We partner with our country’s leading banks, credit unions, member organizations and other institutions to offer financial protection designed for everyday life.
Need support?
With Securian Canada, you’ll get support whenever you need it, from real people who are keen to help. That’s what insurance should feel like.
Make a claim
We’re here to help. Let us guide you through the process.
Manage your policy
Access info and tools to manage or update your Securian Canada policy.