Frequently Asked Questions

If you have a question about Loan Protection please do not hesitate to call us toll-free at 1-866-475-8864 and we’ll do our best to assist you. In the meantime, we’ve got a list of questions and answers that may help.

What is Loan Protection?

It is a life, critical illness, and disability insurance product designed to protect you, the consumer, from the impact of an unforeseen life event for a specific financial obligation such as a loan or lease.

How does it work?

If you, the insured consumer, dies or suffers a covered critical illness, Loan Protection will pay the remaining balance of your loan. Or, if you, the insured consumer becomes medically disabled, the Loan Protection will make your lease or loan payments until you’re back on your feet.

How can I be assured my coverage will be in place if/when needed?

Loan Protection is underwritten by Co-operators Life Insurance Company. They have been a prominent insurer in Canada since 1945, have over $42 billion in managed assets, and more than 600 retail outlets nation-wide

How do I submit a claim?

It is a simple, friendly and “hassle free” experience. Just call toll free at 1-866-475-8864 and an LGM Financial Services Inc. (bi-lingual) administrator will assist. LGM provides top-tier claims and program administration support. With written proof of claim and if all information to support your claim is satisfactory to insurer, then fulfillment will take effect within 30 days or sooner.

I am over 65. Am I eligible for life insurance coverage?

You are eligible for life insurance if the effective date of insurance is prior to your 71st birthday.

Am I eligible for disability insurance coverage?

You are eligible for disability coverage if under the age of 65 and you are at work. If not at work and/or a seasonal employee on the effective date of insurance, you must be employed for salary, wages or other remuneration on a continuous basis for 13 consecutive weeks during past 12 month period immediately preceding effective date of insurance.

Do I have to answer health related questions?

If you are applying for life without critical illness coverage and are 66 years of age or older on the date you complete, date, and sign the application to enrol or if you are applying for life with or without critical illness coverage equal to or greater than $100,000 you must complete a brief Health Questionnaire.

What if I have a pre-existing condition or health problem?

A pre-existing condition is defined as any injury or illness for which you received medical advice or treatment during the 12 months immediately preceding the effective date of insurance.
Claims will not be paid if your death or injury is due to a pre-existing condition that occurred within 12 months immediately following effective date of insurance for Life and Disability or if 24 months immediately following effective date of insurance for Critical Illness.

How would an accelerated death benefit, benefit me?

For most life insurance policies, life benefits are only paid when the insured dies. With our Loan Protection program, your life benefit is paid immediately if diagnosed terminally ill with less than one year to live.

When does coverage begin?

Your insurance coverage begins on the later date of: application to enrol; or the loan advance date when premium part of loan; or the lease date when later than the enrol date; or the date specified by the insurer when Health Questionnaire and possibly other health evidence is involved.

How much does this insurance cost?

The premium amount for life and critical illness coverage is based on the amount of your Insured loan or lease indicated on the application to enrol. The premium amount for disability coverage is based on the monthly insured amount indicated on the application to enrol.

How do I cancel this insurance if need be?

You may cancel your insurance coverage at any time by calling toll free at 1-866-475-8864. Full or partial refunds are provided dependent upon date cancelled and may be subject to a fee.

How do I know my personal information is protected?

All parties including the lender, the administrator and the insurer are governed in accordance with the Privacy Act Canada and Personal Information Protection and Electronic Documents Act.

Why is “loan protection” often recommended over an additional “individual” life policy?

It is an easy and more affordable way to supplement your coverage with minimal (if any) underwriting required.

Will my insurance rates go up?

Your initial single premium is based on your age and circumstances on effective date of insurance at time of loan or lease. Your rates will never go up.

Are the benefits from this insurance tax free?

Generally speaking, insurance benefits are received tax free.