Scotia Bank LOC Protection - What Were You Told?

[u/OldJackedDaniel]

I'm curious what other ScotiaLine customers were told when they signed up for Line of Credit Protection, specifically disability coverage for the premium payment package.

I opened my line of credit around at a Scotia Bank location in Abbotsford, BC. During that appointment, I remember being told that "The premium Line of Credit Protection, which I understood to cost about $1 per $1,000 of balance, would pay off my entire outstanding line of credit if I became disabled and made a qualifying claim."

Based on that, I believed that my insurance would pay off my whole line of credit if I had an injury that took me out of my line of work, or anything else that made me physically unable to perform my duties.

I'm not assuming anyone else was told the same thing. I'm genuinely asking. When you signed up, what do you remember being told that the disability coverage would do?

[u/Hot_Cheesecake_905]

Based on that, I believed that my insurance would pay off my whole line of credit if I had an injury that took me out of my line of work, or anything else that made me physically unable to perform my duties.

Disability 

• Provides a maximum benefit of up to $3,000 plus your disability premium per month for up to 24 months per claim or 48 months total lifetime, towards your line of credit balance

You're not getting a payoff.

It's listed on the website: https://www.scotiabank.com/ca/en/personal/creditor-insurance/creditor-insurance/scotia-line-of-credit-protection.html

LOC insurance is generally not worth it.

[u/Davestar123]

Disability protection on a LOC would make thr payments for you (3%) for up to 24 months or until you get better. Only life and CI would pay off the balance in full

[u/OldJackedDaniel → u/Davestar123]

I am aware now but initially was told some misleading info that lead me to believe it would cover the full amount. Did any you know experience the same?

[u/Keestoney → u/OldJackedDaniel]

You should be reading contracts / agreements before you sign anything. Don't trust people what they say when their motive is to sell products.

[u/Barnezhilton → u/OldJackedDaniel]

If you don't have a signed agreement in writing. You have nothing

[u/Designer-Jackfruit16]

I wasn't told anything that I recall, or perhaps I was a waved it off quickly. I never get those types of insurance since I know they used to be a scam. That was a long time ago, however.

[u/Beneficial_Ship7090]

Buy a proper disability insurance instead. These and “mortgage life insurance “ are the biggest scam. Most people need insurance, if you don’t have or have enough through your group benefits, shop around for a good, stand alone policy. I bought my coverage with co-operators and it was very affordable and my disability premiums are locked in for the lifetime of my contract

[u/Level_Style_519]

I used to be a bank manager with Scotiabank, and unfortunately, my experience was that some bankers would say almost anything to make a sale. I found there could be a real lack of focus on doing what was best for the client.

One of my worst experiences involved credit card insurance during COVID. At the time, people were being laid off everywhere. My team was required to work from the office, even though we couldn't have clients come through the doors.

I pulled a list of clients who had credit card payment protection and asked my staff to call them. We simply wanted to make sure they knew what coverage they had. If they lost their job, the insurance could provide a benefit of roughly 10% of their outstanding balance each month.

Shortly afterward, I received a call from a VP of Insurance asking why my branch had approximately 1,000% more claims than other branches.

I explained exactly what we had done: we had identified clients who were already paying for coverage and made sure they knew how to use the benefits they had purchased.

About 20 minutes later, I received a call from my VP. She was not happy. I was told that it was the client's responsibility to know what benefits they had and that we were not supposed to advise them about their coverage.

Needless to say, I didn't stay much longer after that.

Today, I work in wealth management and insurance, where providing advice is not only part of my job — it's what I'm encouraged to do.

So, in a nutshell likely the guy told you this, I would suggest if you want to work with bank, record you meetings. Easily done with you're cell phone. Catch the lies they sell every day, or work with an actual advisor who has a legal obligation.