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What is Universal Loan Insurance?
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.
How does it work?
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.
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
Advantages of Universal Loan Insurance:
- Monthly, non-taxable benefits
- All your loans can be covered under the same policy
- Rent payments can be insured if you are not a homeowner
- Loans can be insured for up to $5,000 per month
- Coverage can be transferred from loan to loan throughout the life of the contract
- Less expensive than insurance from a bank –it’s more advantageous to cover all your payments under one policy than paying for separate insurance for each loan