Scotia Business Loan Protection

Protect your business and the people you care about

What happens when a business owner passes away? Or when a key employee has an accident or falls ill? These are situations we never want to imagine, but they happen more often than you might think. And if your business is unprotected, the consequences could be difficult for you and the people you care about.

The good news is you can protect your business with Scotia Business Loan Protection.

Scotia Business Loan Protection is simple but effective insurance. If you or another key employee loses the ability to work, Scotia Business Loan Protection can make regular payments or completely pay off your Scotiabank line of credit, loan or credit card. If you or another key employee passes away, your outstanding loan amounts can be paid in full.

This vital protection is available to critical members of your business operations, including:

  • A sole proprietor or partner;
  • A guarantor
  • Shareholders owning at least 10% voting shares of the business
  • A key employee whose contributions are essential to an eligible business entity and without whom the eligible business entity would have difficulty operating.

You can choose Basic Protection or Comprehensive Protection:

Basic Protection

With Basic Protection, your business can receive a life insurance benefit of up to $2,000,000 if an insured person passes away.

Comprehensive Protection

With Comprehensive Protection, your business can receive the following benefits:

  • Life insurance benefit of up to $2,000,000 if an insured person passes away;
  • Disability benefit paid monthly and equal to 1%1 of the Comprehensive coverage amount if an insured person becomes disabled;
  • Hospitalization benefit equal to 2%2 of the Comprehensive coverage amount ; or
  • Terminal Illness benefit equal to the outstanding balances3 on your insured borrowings.
Scotia Business Loan Protection 

Scotiabank offers competitive rates. Insurance premiums are based on the type and amount of coverage you choose, and are also based on your age if the coverage amount is greater than $50,000.

Basic Protection

Basic Protection is available only when the coverage amount is greater than $50,000. This table sets out the monthly premium for every $1,000 of Basic Coverage Amount.

Age Basic Protection Rate
18-35 $ 0.20
36-40 $ 0.29
41-45 $ 0.39
46-50 $ 0.52
51-55 $ 0.65
56-60 $ 0.88
61-65 $ 1.26
66-69 $ 1.65
Comprehensive Protection

The monthly premium for each Insured Person is $1.00 for every $1,000 of Comprehensive Coverage Amount, subject to a minimum monthly premium of $10.00.

For Comprehensive coverage amounts greater than $50,000 but less than or equal to $750,000:

This table sets out the monthly Comprehensive Protection premium rate for every $1,000 of Comprehensive coverage amount.

Age Basic Protection Rate
18-35 $ 0.50
36-40 $ 0.59
41-45 $ 0.79
46-50 $ 1.02
51-55 $ 1.25
56-60 $ 1.59
61-65 $ 2.16
For Comprehensive coverage amounts greater than $750,000:

The monthly Comprehensive Protection premium is calculated as follows:

Premium = (a) + ((b) x Comprehensive Coverage Amount in Excess of $750,000) ÷ 1,000), where (a) and (b) are set out in the following table.

Age (a) (b)
18-35 $ 375.00 $ 0.20
36-40 $ 442.50 $ 0.29
41-45 $ 592.50 $ 0.39
46-50 $ 765.00 $ 0.52
51-55 $ 937.50 $ 0.65
56-60 $ 1,192.50 $ 0.88
61-65 $ 1,620.00 $ 1.26

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