Is Scotiabank Disability Insurance the best? Review 2024
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Disability insurance in Canada is like a safety net for your income if you ever can't work due to illness or injury. It's your financial backup plan, making sure you still have money to cover expenses when life throws unexpected challenges your way.
While finding the best disability insurance is no mean task, among the many providers in the market that you must consider is the reputable Scotiabank disability insurance. But what makes it a good choice? Is that right for you?
Read this review on everything you need to know about Scotiabank disability insurance, how much it costs, and the various limitations and exclusions. Then use our free comparator to compare Scotiabank with the best disability insurance plans in Canada, get personalized quotes, and find a plan that fits you.
Scotiabank Disability Insurance: 4 Key Takeaways
- Scotiabank’s disability insurance is named Protection Insurance
- It can only be purchased as an optional extra to Scotiabank financial products
- The monthly benefits are paid directly to Scotiabank to cover your financial obligations
- Scotiabank disability insurance is underwritten by Canada Life
Our review of Scotiabank Disability Insurance: Perfect for Scotiabank customers
Scotiabank disability insurance is tied to Scotiabank’s financial product offerings as optional add-ons as opposed to being standalone short-term or long-term disability insurance products. Due to this, the insurance policy also functions slightly differently when compared to normal disability insurance.
Where a standard policy would provide the insured with a disability benefit in the form of regular monthly payments to their bank accounts, Scotiabank disability insurance benefits are used to directly pay off any recurring monthly debts that the policyholder may have with Scotiabank.
Furthermore, Scotiabank disability insurance premiums are directly linked to your current Scotiabank liabilities and accrue daily, meaning you won’t ever overpay for your insurance nor will you be overinsured.
Scotiabank’s disability insurance options are also underwritten by The Canada Life Assurance Company, Canada Life, which is one of the biggest insurance providers in Canada. Ultimately, if you are a Scotiabank customer and have the option to purchase Scotiabank disability insurance to safeguard your financial obligations, we would highly recommend it.
If you want to compare disability insurance that isn’t tied to Scotiabank’s financial products you can use our free comparison tool below. With just a few clicks you can compare and review quotes from all the best disability insurance providers in Canada.
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What are the advantages and disadvantages of Scotiabank disability insurance?
If you are unable to work due to a covered injury or illness, Scotiabank disability insurance will cover your Scotiabank financial obligations, such as monthly credit card, lines of credit, or mortgage payments. It is therefore a valuable tool that you can use to ensure that your family’s financial future isn’t further impacted by disability and the potential loss of income.
Pros of Scotiabank Disability Insurance
- Premiums are calculated daily ensuring the lowest possible premiums
- The disability insurance options are efficiently tailored to Scotiabank’s financial offerings
- Any insurance benefit is applied directly to your Scotibank liabilities
- Disability insurance linked to loans with a maximum value of $50,000 does not require a medical questionnaire
- Canada Life is the underwriter of Scotiabank’s disability insurance policies
- Discounts may be available for individuals with multiple insurance policies
Cons of Scotiabank Disability Insurance
- All options are forms of short-term disability insurance cover
- The various lifetime maximum limits may not be enough
- The policies are only available to certain Scotiabank customers
- The disability insurance benefit cannot be used for anything other than to pay Scotiabank liabilities
Good to know
There is also Canada Life disability insurance that is provided by Canada Life itself. You can read our full guide on Canada Life disability insurance policy.
How much does Scotiabank Disability Insurance cost?
Scotiabank’s disability insurance premiums vary depending on the financial product to which your insurance is linked, your age, and your disability benefit. Fortunately, the cost of Scotiabank’s disability insurance is completely transparent and the premiums are all calculated following the same three-step process. While the premium structures differ, the three-step process remains the same and includes:
- Step one: Determining the premium rate for your age
- Step two: Identifying your insurance coverage
- Step three: Calculate your daily premium rate using the formula applicable to your chosen disability insurance
For example, if you’re interested in purchasing Scotiabank’s Line of Credit disability insurance you’ll first have to find the applicable premium rate for your age, which can be seen in the table below.
You will then have to identify your monthly insurance benefit coverage, which for Scotiabank’s Line of Credit disability insurance is the daily outstanding balance on your credit multiplied by 3% and then multiplied again by the number of days in that month.
Lastly, you calculate your daily premium rate which is done by multiplying the monthly premium rate you identified in step one by 12 (months) and then dividing by days in the year (365).
| Age | Monthly premium rate per $100 of monthly insurable benefit |
|---|---|
| 18-29 | $1.60 |
| 30-35 | $1.95 |
| 36-40 | $2.50 |
| 41-45 | $3.07 |
| 46-50 | $3.65 |
| 51-55 | $4.39 |
| 56-60 | $5.46 |
| 61-64 | $6.41 |
| 65-69 | $7.00 |
For example
If a 35-year-old has Disability Insurance on Scotia Line of Credit, their monthly premium rate would be $1.95/$100. The daily premium rate would then be calculated by multiplying the monthly premium rate with 12/365. ($1.95/100)*(12/365)=0.000641
If this individual’s daily outstanding credit was $10,000 for the whole month of January, their monthly benefit would be $10,000*3%*31=$9,300.
Lastly, the monthly premium rate is the monthly benefit multiplied by the daily premium rate of $9,300*0.000641=5.96
This person’s monthly Scotiabank Line of Credit disability insurance premium is, therefore, $5.96/month + sales tax, if applicable.
Fortunately, your disability insurance premiums are calculated automatically by Scotiabank and charged directly to your accounts. So, you will never have to deal with the administrative process of managing or paying for your insurance manually as the premiums are simply added to your credit balance and paid to Canada Life automatically.
Is disability insurance tax deductible in Canada?
Disability insurance premiums may be tax deductible in Canada depending on the type of insurance you have and the entity that pays for the premiums. Private disability insurance is not tax-deductible, whereas corporate disability insurance is tax-deductible. You can read our full guide on the disability insurance tax deductible topic.
What are the different types of Scotiabank Disability Insurance?
Scotiabank has a specific disability insurance policy for each of the financial products: Scotia Mortgages, Scotia Line of Credit, Scotia Credit Cards, and Scotiabank Auto Loans. They have built these optional add-ons, which they have called Protection Insurance, to offer their clients a form of financial stability and peace of mind should they become disabled and unable to work.
The table below highlights key aspects of Scotiabank's various forms of Protection Insurance, what they cover, and the financial product they are associated with.
| Name | Scotia Mortgage Protection insurance | Scotia Line of Credit Protection insurance | Scotia Credit Card Protection insurance | Scotia Loan Protection insurance |
|---|---|---|---|---|
| Applicable financial product | Scotia Mortgages | Scotia Line of Credit | Scotia Credit Cards | Scotiabank Auto Loans |
| Coverage for | Critical Illness Life Disability Job Loss | Critical Illness Life Disability Job Loss | Life Critical Illness Hospitalization Disability Job Loss Strike or Lockout | Life Terminal Illness Critical Illness Disability Job Loss |
| Monthly disability benefit period | Up to $3,500/month | Up to $3,000/month | 20% of your outstanding account balance Maximum $10,000 per month | Up to $3,500/month |
| Waiting | 60 days | 60 days | 30 days | 60 days |
| Maximum benefit per incident of disability | 24 months | 24 months per claim, 48 months lifetime | Maximum 5 months | 12 months per disability, 12 months lifetime |
What are the limitations and exclusions of Scotiabank’s disability insurance?
The limitations and exclusions of Scotiabank’s disability insurance policies are similar in all the types of coverage that they offer. For example, regardless of whether you have Scotia Mortgage Protection insurance or Scotia Loan Protection insurance, your disability benefit maxes out at $3,500 per month and comes with a 60-day waiting period.
In addition, all the monthly benefits will continue to be made payable until one of several events occurs. An event that may stop you from receiving your monthly disability benefit can include:
- Returning to your work
- Received the full 24 months of disability (or 5 months and 12 months for Scotia Credit Card Protection insurance and Scotia Loan Protection insurance, respectively)
- Received your lifetime maximum of 48 months of disability payments (or 12 months for Scotia Loan Protection insurance)
- You find another job that pays a salary or from which you make a profit
- Your liabilities are paid off
- You pass away
Coverage exclusions
Further to the above situations where you will stop receiving the benefits, the following are situations where a claim will be denied even if you become disabled and can no longer work.
- You do not receive continuous medical care or you refuse to submit to a specific medical exam requested by Canada Life
- You do not provide satisfactory proof of your disability and inability to work
- You are imprisoned
- Becoming disabled within 12 months of your insurance start date and your disability is a result of a pre-existing condition
- Your disability is as a result of
- Drug and/or alcohol abuse
- Normal pregnancy
- Self-inflicted harm
- Participation or attempted participation in a crime
- War
- Elective cosmetic surgery
- Experimental surgery
Expert advice
Whenever you consider buying disability insurance you should always review the terms and conditions to ensure that you have a complete understanding of the plan that you are buying. There will always be situations where you may not be covered and as long as you are aware of any exclusions you cannot be caught unawares.
How can I get a Scotiabank disability insurance quote?
If you are an existing Scotiabank customer you can easily get a disability insurance quote through your online Scotiabank membership portal. If you aren’t currently a Scotiabank customer but you are interested in any one of their financial products, you should make an appointment with your nearest Scotiabank branch to discuss your options. The representative will be able to provide you with a disability insurance quote in person.
Please note, however, that any premiums calculated based on the premium rate tables available on their website, or provided to you by a representative may not be final. Answers to various lifestyle and health questionnaires may influence your final premium, or you may find that you are eligible for premium discounts.
Interested in disability insurance but don’t think that Scotiabank is right for you? Use our comparison tool below to compare Scotiabank disability insurance to standalone plans issued by other insurance providers.
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Who is eligible for Scotiabank disability insurance?
You are eligible for Scotiabank disability insurance if you are:
- Aged between 18 and 64 (or 69 and 70 for Scotia Loan Protection and Scotia Credit Card Protection, respectively)
- A Canadian resident
- The principal Borrower, co-borrower, or guarantor of a Scotiabank
- Mortgage account
- Line of Credit account
- Loan
- The primary cardholder of a credit card account
- Employed and actively working at least 20 hours/week for Scotia Mortgage Protection and Scotia Loan Protection
How to contact Scotiabank disability insurance?
If you are already a Scotiabank customer, the easiest way to contact Scotiabank is through the private online membership portal. Within the portal, you will be able to review your Scotia accounts and apply for any available and applicable disability insurance.
Non-customers can contact Scotiabank by phone from Monday to Friday (8 am-8 pm ET) at 1-855-753-4272, or by making an appointment at your nearest Scotiabank branch. Appointments can be made on the phone or via their dedicated website.
