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How Can I Protect My Mortgage, Loan, Line of Credit, or Credit Card Payments?

Maintaining your financial stability is about more than keeping up with your loan, line of credit, mortgage, or credit card payments. Choosing the right protection, such as creditor insurance, to help safeguard against life’s unexpected turns is crucial, too. By exploring your options, you empower yourself to make informed decisions tailored to your unique situation.

Taking on a mortgage, loan, line of credit, or credit card is an exciting step—it means you’re accessing the funds you need. However, it also comes with the responsibility of repayment.

Now, imagine if something unforeseen happened, making it difficult for you to meet those financial obligations. This is where creditor insurance comes in, which can help provide a safety net for you and/or your family when you are unable to work due to illness or injury, or in the event of your death. Let’s break down what creditor insurance is, how it works, and whether it’s right for you.

Key takeaways

  • Creditor insurance (sometimes referred to as “creditor protection”) is an optional coverage that may help to pay off or pay down your debt payments if you become injured, ill, lose your job, or if you pass away.
  • Creditor insurance includes mortgage protection insurance, loan and line of credit protection insurance, and credit card balance protection insurance. The benefits are non-taxable and go directly to your lender, to be applied to your debt.

It’s easy to apply for and it will not affect any other insurance policies you might have.

What is creditor insurance?

Think of creditor insurance as an optional safety net for your financial obligations that can help protect you and your loved ones. Creditor insurance is designed to help reduce or cover your debts or monthly payments if anything unexpected occurs—such as an injury, critical illness, or even death. The benefits are paid directly toward your credit obligations, are non-taxable, and won’t affect any other insurance policies you might have. Banks and lenders typically offer this type of insurance under various categories, such as mortgage protection insurance, loan and line of credit protection insurance, and credit card balance protection insurance.

Types of creditor insurance

Let’s break down the different types of creditor insurance available—mortgage protection, loan and line of credit protection, and credit card balance protection—each one designed to support you in various financial scenarios.

Mortgage protection insurance

Consider how reassuring it would be to know your home is safe if you were to encounter an unexpected event. That’s what mortgage protection insurance is all about. If you ever face illness, injury, or death, this insurance can help ensure your mortgage payments are still covered. Here’s a look at the different options to help keep your home protected.

  • Life coverage: This coverage pays off or reduces your mortgage balance to a certain limit if you pass away.
  • Critical illness coverage: If diagnosed with a covered critical illness, such as a stroke, heart attack, or a life-threatening cancer, this coverage provides a lump-sum payment to reduce or pay off your mortgage.
  • Disability coverage: Should you become disabled and unable to work, this insurance helps cover your regular mortgage payments and can help provide financial stability during recovery.

Loan and line of credit protection insurance

Loan and line of credit insurance can help ensure that your personal loans and/or lines of credit are covered when unexpected events occur. This type of insurance can assist with your loan payments if you experience a disabling illness or injury, a critical illness, or pass away. It provides various coverage options to protect your lines of credit and loans, helping to ensure that your family or loved ones are not burdened with your financial obligations during challenging times. There are three types of loan and line of credit insurance to choose from.

  • Life coverage: This insurance can pay down or pay off the balance of insured loans or lines of credit if you pass away.
  • Critical illness coverage: If diagnosed with a covered critical illness (stroke, heart attack, or life-threatening cancer), this insurance helps pay off or reduce the balance of your insured loans or lines of credit.
  • Disability coverage: If an injury or illness leaves you disabled and unable to work, this insurance can help to ensure your regular loan and line of credit payments are made for a specific amount of time or until you can work again. While it usually doesn’t pay off the entire balance, it helps manage payments during recovery or for a specified period.

Credit card balance protection insurance

If you lose your job, become disabled, or pass away, credit card balance protection insurance may help reduce or cover your credit card balance. It’s typically bundled into one simplified product that can provide lump-sum or monthly benefits payments to your credit card account, helping to ensure you’re supported during difficult times.

Benefits of creditor insurance

Creditor insurance has several advantages that make managing your financial obligations easier and more secure. Here’s what you can expect.

  • Simple application: The sign-up process is usually quick and easy, and most people get approved after answering just a few health-related questions. No health-related questions are asked for credit card balance protection insurance.
  • Convenient payments: No need to worry about separate bills. Premiums are easily added to your regular mortgage or loan payments. Credit card balance protection insurance premiums are automatically added as a separate line item on your credit card statement.
  • Direct benefits: When the time comes, the benefits go straight to your lender and are applied directly to your outstanding balance.
  • Flexible premiums: For credit card balance protection or line of credit insurance, premiums are based on your account balance, so they fluctuate with your debt level.
  • Customizable mortgage and loan protection coverage: You can tailor your coverage by combining or bundling life insurance with disability or critical illness coverage, allowing you to create a plan to fit your and your family’s needs.

Is creditor insurance right for you?

Everyone’s insurance needs are unique, so it’s crucial to understand how creditor insurance fits into your overall financial strategy. If you don’t already have life insurance, creditor insurance can be a game-changer, helping to ensure your loved ones aren’t burdened with debt if something happens to you. Even if you already have life insurance, it may not provide you with enough coverage to pay your financial obligations, should the unexpected happen. It’s also vital to regularly review your insurance needs as your life changes, ensuring you always have the right coverage.

How to get creditor insurance

If creditor insurance sounds like a good fit for you, applying is simple. Most banks and lenders offer it when you take out a mortgage, loan, line of credit, or credit card. You can also apply later, if you decide you need it. And, if your situation changes, you can cancel the insurance anytime.

Creditor insurance can offer a valuable layer of protection, helping to ensure your financial obligations are covered, even when unexpected challenges arise. By exploring your options, you can make an informed choice that supports your financial needs. Call 1-800-769-2523 to speak with a representative and explore RBC’s mortgage, loan, and line of credit protection options. And call 1-800-769-2512 to inquire about credit card balance protection insurance.

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Gone are the days where salary is the only point of negotiation when looking at a new role. As employers look to woo top talent who are more concerned about work-life balance than loyalty. Perks like financial and physical wellness programming, charitable matchmaking programs where employers support employee-directed causes, unlimited vacation days and the ability to work remotely are becoming commonplace, sweetening renumeration packages beyond traditional offerings like medical coverage and pensions.

But every employer’s offerings are different.

Whether you’re right out of university and looking for your first job or making the jump from freelancer to an in-house position, here are the questions you need to be asking about the benefits plan once a job offer has been tabled.

When Does the Probation Period End?

Some employers will offer up benefits immediately, while others may require you to work for upwards of three months before benefits begin. Be sure you understand and are comfortable with the probation period before you accept an offer.

What Are the Stipulations Surrounding Medical and Dental Insurance?

How much will coverage cost you? Do you pay up front as in a health spending account system or are premiums deducted before tax dollars from your paycheque? Who’s covered under the plans: spouse? common-law? same-sex partner? children? And what about travel insurance, does the company cover you even on vacation?

What Opportunities are There for Bonuses or Compensation Beyond Your Base Salary?

Never accept a job offer without taking some time to consider it. If the salary isn’t what you were hoping or falls below industry standards (you can research through glassdoor.ca or monster.ca) maybe there’s some wiggle-room surrounding other benefits. Could the base salary be extended to bonuses and stock options? And if there are bonuses, how are they determined? How much would that incentive be on average as a percentage of your salary? Does the company have RRSP matching? Do they offer share matching programs?

Does the Company Have a Pension Plan?

It’s also good to inquire about life insurance and pension plans — does the company offer one or both? And if so, how are they structured? What does the company contribute? Is your contribution taken directly off your paycheque or made separately? Is there a contribution limit?

How do Vacations and Flexibility Work?

Asking about vacation or a sabbatical during the job interview might not be a wise move, but once an offer is in hand, now’s your chance to talk more about vacation days and working remotely. Outside of the basics like whether working from home is an option and how many vacation/sick days you have, ask whether you can roll-over days from a previous year and if there’s an opportunity to convert overtime into lieu days. Will you be paid for vacation days? Can you take an unpaid sabbatical at some point? What about mental health or personal well-being days, does the company allow them?

Are There Transportation Benefits?

Some companies offer car allowances or mileage and gas, others – if you’re commuting – will foot all or some of the bill for transit. What information will you need to supply the company with? What records will you have to keep?

What Other Unconventional Benefits Programs are There and Do You Need to Opt-in?

Companies are trying to attract top talent by providing unique perks. What opt-in benefits are there? Pet insurance? Is it a pet friendly work-place? Will there be bonuses for recruiting friends? Does the employer match employee donations to charities? Does the company cover gym memberships? Will the company support lifelong learning or continuing education tuition reimbursement? Are any of these benefits available to spouses or dependents? What sort of parental leave is available?

Whether or not all these benefits apply to you, knowing the questions to ask and taking some time to review the benefits policies before you take on a job will ensure you end up at an organization that fits your lifestyle – and offers some room to grow.

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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If you’re planning to buy life insurance, you might be worried about what you need to know and the kinds of questions you’ll be asked. But buying life insurance is different for everyone, because your needs are unique, but a little preparation can help ensure you get a policy tailored to your needs.

Here are three things you can do first to prepare.

1. Estimate how much insurance you need

Probably the most important step in preparing to buy life insurance is to get some idea of how much insurance coverage you might need. While a professional can help guide you through this decision, having a general idea of your needs can save you time.

Start by reviewing your existing financial situation and your future financial goals. Here are the kinds of questions you might ask yourself:

  • How much debt do I currently have? Include your mortgage, any car loans, lines of credit, student loans, and any other money you owe currently.
  • What future expenses do I expect? This might include the cost of raising a child, paying for post-secondary education, and saving for retirement.
  • What are other final expenses? This can include funeral costs, possible capital gains, legal fees, estate taxes, and small cash gifts for beneficiaries.

Once you’ve added these up, you’ll have a better idea of the amount of insurance that might be right for you — and you’re more prepared to get the most out of meeting with an advisor.

2. Find the right professional advisor for you

The next step is to find a professional advisor you trust.

Life insurance can be an important step in securing your financial future — helping ensure financial goals are achievable even if the unexpected happens. That’s why it’s important to find a professional who is the right fit for your family, your situation, and your goals.

What characteristics should you look for in an insurance advisor? The right advisor for you is one who:

  • Communicates well with you and your family. You and your family should be comfortable asking your advisor questions, as well as answering detailed questions about your finances.
  • Shows they have your best interests at heart. Your advisor should take the time to get to know you and build the trust required for a successful partnership.
  • Is a qualified life insurance advisor. Your advisor is there to help you understand different kinds of policies, consider your coverage options, and help you decide what best fits your needs.

How can you find an advisor who fits these qualifications?

Your best option is to interview several candidates to find the best fit. Ask friends, family and others you trust for their recommendations, or speak to a trusted organization you’ve worked with in the past. Then don’t be afraid to reach out to more than one potential advisor. Credible advisors often offer free insurance reviews with no obligation to buy. This can be another great way to find out if they’re a good fit.

3. Prepare answers for application questions

When you’re buying life insurance, your policy will be tailored just to you, based on factors like your health, your habits, and your activities. That means in addition to financial questions, you’ll need to answer questions about your health, your job, and what you do in your spare time, such as:

  • Do you smoke? Many insurers categorize people as smokers if they regularly use tobacco or nicotine in any form.
  • What kinds of activities does your work require? Are you exposed to any risks in your job?
  • What hobbies or activities do you do in your spare time? Do you participate in potentially higher-risk activities, like snowboarding or scuba diving?

In addition to answering questions like these, your overall health will probably be assessed. This information is used to ensure you’re getting an insurance quote that matches your health, as well as confirming the information is accurate. Although these questions may feel overly personal and even intrusive, they are important to ensure the policy you get is right for you.

By doing these three things, you’ll be better prepared to have a discussion about life insurance with an advisor. Knowing how much coverage you might need, the type of questions you might be asked, and being prepared to answer them honestly and completely, can help make applying for insurance easier.

Another way to prepare is to do some initial research online. RBC Insurance has tools and information for researching all aspects of your insurance needs — from calculators to help you understand how much life insurance is right for you, to information on the different types of insurance for your needs.

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Life Insurance

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If you’re planning to buy life insurance, you might be worried about what you need to know and the kinds of questions you’ll be asked. But buying life insurance is different for everyone, because your needs are unique, but a little preparation can help ensure you get a policy tailored to your needs.

Here are three things you can do first to prepare.

1. Estimate how much insurance you need

Probably the most important step in preparing to buy life insurance is to get some idea of how much insurance coverage you might need. While a professional can help guide you through this decision, having a general idea of your needs can save you time.

Start by reviewing your existing financial situation and your future financial goals. Here are the kinds of questions you might ask yourself:

  • How much debt do I currently have? Include your mortgage, any car loans, lines of credit, student loans, and any other money you owe currently.
  • What future expenses do I expect? This might include the cost of raising a child, paying for post-secondary education, and saving for retirement.
  • What are other final expenses? This can include funeral costs, possible capital gains, legal fees, estate taxes, and small cash gifts for beneficiaries.

Once you’ve added these up, you’ll have a better idea of the amount of insurance that might be right for you — and you’re more prepared to get the most out of meeting with an advisor.

2. Find the right professional advisor for you

The next step is to find a professional advisor you trust.

Life insurance can be an important step in securing your financial future — helping ensure financial goals are achievable even if the unexpected happens. That’s why it’s important to find a professional who is the right fit for your family, your situation, and your goals.

What characteristics should you look for in an insurance advisor? The right advisor for you is one who:

  • Communicates well with you and your family. You and your family should be comfortable asking your advisor questions, as well as answering detailed questions about your finances.
  • Shows they have your best interests at heart. Your advisor should take the time to get to know you and build the trust required for a successful partnership.
  • Is a qualified life insurance advisor. Your advisor is there to help you understand different kinds of policies, consider your coverage options, and help you decide what best fits your needs.

How can you find an advisor who fits these qualifications?

Your best option is to interview several candidates to find the best fit. Ask friends, family and others you trust for their recommendations, or speak to a trusted organization you’ve worked with in the past. Then don’t be afraid to reach out to more than one potential advisor. Credible advisors often offer free insurance reviews with no obligation to buy. This can be another great way to find out if they’re a good fit.

3. Prepare answers for application questions

When you’re buying life insurance, your policy will be tailored just to you, based on factors like your health, your habits, and your activities. That means in addition to financial questions, you’ll need to answer questions about your health, your job, and what you do in your spare time, such as:

  • Do you smoke? Many insurers categorize people as smokers if they regularly use tobacco or nicotine in any form.
  • What kinds of activities does your work require? Are you exposed to any risks in your job?
  • What hobbies or activities do you do in your spare time? Do you participate in potentially higher-risk activities, like snowboarding or scuba diving?

In addition to answering questions like these, your overall health will probably be assessed. This information is used to ensure you’re getting an insurance quote that matches your health, as well as confirming the information is accurate. Although these questions may feel overly personal and even intrusive, they are important to ensure the policy you get is right for you.

By doing these three things, you’ll be better prepared to have a discussion about life insurance with an advisor. Knowing how much coverage you might need, the type of questions you might be asked, and being prepared to answer them honestly and completely, can help make applying for insurance easier.

Another way to prepare is to do some initial research online. RBC Insurance has tools and information for researching all aspects of your insurance needs — from calculators to help you understand how much life insurance is right for you, to information on the different types of insurance for your needs.

If you have questions about life insurance, you can contact an RBC Life Insurance Advisor who will be happy to help.

 

RBC Life Insurance

Protect Your Loved Ones With Dependable Life Insurance

Learn More

*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Life Insurance

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Gone are the days where salary is the only point of negotiation when looking at a new role. As employers look to woo top talent who are more concerned about work-life balance than loyalty. Perks like financial and physical wellness programming, charitable matchmaking programs where employers support employee-directed causes, unlimited vacation days and the ability to work remotely are becoming commonplace, sweetening renumeration packages beyond traditional offerings like medical coverage and pensions.

But every employer’s offerings are different.

Whether you’re right out of university and looking for your first job or making the jump from freelancer to an in-house position, here are the questions you need to be asking about the benefits plan once a job offer has been tabled.

When Does the Probation Period End?

Some employers will offer up benefits immediately, while others may require you to work for upwards of three months before benefits begin. Be sure you understand and are comfortable with the probation period before you accept an offer.

What Are the Stipulations Surrounding Medical and Dental Insurance?

How much will coverage cost you? Do you pay up front as in a health spending account system or are premiums deducted before tax dollars from your paycheque? Who’s covered under the plans: spouse? common-law? same-sex partner? children? And what about travel insurance, does the company cover you even on vacation?

What Opportunities are There for Bonuses or Compensation Beyond Your Base Salary?

Never accept a job offer without taking some time to consider it. If the salary isn’t what you were hoping or falls below industry standards (you can research through glassdoor.ca or monster.ca) maybe there’s some wiggle-room surrounding other benefits. Could the base salary be extended to bonuses and stock options? And if there are bonuses, how are they determined? How much would that incentive be on average as a percentage of your salary? Does the company have RRSP matching? Do they offer share matching programs?

Does the Company Have a Pension Plan?

It’s also good to inquire about life insurance and pension plans — does the company offer one or both? And if so, how are they structured? What does the company contribute? Is your contribution taken directly off your paycheque or made separately? Is there a contribution limit?

How do Vacations and Flexibility Work?

Asking about vacation or a sabbatical during the job interview might not be a wise move, but once an offer is in hand, now’s your chance to talk more about vacation days and working remotely. Outside of the basics like whether working from home is an option and how many vacation/sick days you have, ask whether you can roll-over days from a previous year and if there’s an opportunity to convert overtime into lieu days. Will you be paid for vacation days? Can you take an unpaid sabbatical at some point? What about mental health or personal well-being days, does the company allow them?

Are There Transportation Benefits?

Some companies offer car allowances or mileage and gas, others – if you’re commuting – will foot all or some of the bill for transit. What information will you need to supply the company with? What records will you have to keep?

What Other Unconventional Benefits Programs are There and Do You Need to Opt-in?

Companies are trying to attract top talent by providing unique perks. What opt-in benefits are there? Pet insurance? Is it a pet friendly work-place? Will there be bonuses for recruiting friends? Does the employer match employee donations to charities? Does the company cover gym memberships? Will the company support lifelong learning or continuing education tuition reimbursement? Are any of these benefits available to spouses or dependents? What sort of parental leave is available?

Whether or not all these benefits apply to you, knowing the questions to ask and taking some time to review the benefits policies before you take on a job will ensure you end up at an organization that fits your lifestyle – and offers some room to grow.

Looking to cover your bills if you ever get sick or injured and can’t work? Learn more about disability insurance.

Rather talk to someone? Call 1-866-262-7920 or find an advisor near you.

 

RBC Disability Insurance

Help ensure your expenses are covered if you get sick or injured

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Every retirement savings plan is different — after all, everyone has different retirement goals, investment strategies, income levels and lifestyle priorities. But fundamentally, there’s one thing you need your retirement savings to do: last throughout your retirement.

Here are three ways payout annuities can help you achieve your retirement objectives and help keep you from worrying about running out of savings.

1. You earn guaranteed income for life

The past few years have shown just how unpredictable life can be. Sometimes, you can use some guarantees, especially when it comes to your money. It’s important to remember you may have a combination of fixed and unexpected expenses during retirement. You’ll need to know you have income on hand to pay your bills.

Payout annuities are one way to guarantee income for life — or a specified period you choose — removing the worry of running out of cash flow in retirement. Payments are fixed at the onset of the contract, so they stay the same regardless of market performance or changes in interest rates.

When interest rates are low, many people don’t consider annuities; however, there may be a cost to waiting for rates to rise. Investing — and protecting — your money today versus putting it off until tomorrow can help offer the long-term security you’re looking for.

For instance, when you choose a life annuity, you’re guaranteed payments for as long as you live. If you choose a term annuity, you receive guaranteed income for a set period of time, or until you reach a certain age.

Either way, you can determine how often you receive payments — monthly, quarterly, semi-annually or annually — throughout your retirement.

2. Avoid the stress of investing

If you find actively investing your money stressful, a payout annuity may complement your portfolio and give you peace of mind.

Once you purchase your annuity, you’ll receive payments for the length of time you’ve chosen as a source of retirement income. You don’t need to do anything further, making it a reliable addition to a diversified investment plan.

Payout annuities may even be purchased with funds from non-registered plans or registered plans such as a Retirement Savings Plan or Registered Retirement Income Fund.

3. Plan with a spouse or partner

With a payout annuity, you have the option to select products to help protect both you and a partner. A joint life payout annuity, allows you to provide for two lives with one investment. How? When you set up a joint annuity, if one spouse passes away early, the surviving spouse is ensured their own income for the remainder of the annuity period.

It’s important to understand how an annuity can help provide value as a part of your overall retirement plan. They are beneficial if you want the assurance of a steady stream of income. They also provide value as a reliable source of income regardless of potential market volatility.

You’re working hard to enjoy a comfortable retirement. If you’re seeking security, stability and stress-free finances a payout annuity may be the right fit for you.

RBC Retirement Investment Solutions

Whether you’re building up your nest egg or ready to turn your hard-earned savings into retirement income, our solutions can help you make the most of your money. Have an RBC Insurance Advisor call you to learn more.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. RBC Guaranteed Investment Funds are individual variable annuity contracts and are referred to as segregated funds. RBC Life Insurance Company is the sole issuer and guarantor of the guarantee provisions contained in these contracts. The underlying mutual funds and portfolios available in these contracts are managed by RBC Global Asset Management Inc. When clients deposit money in an RBC Guaranteed Investment Funds contract, they are not buying units of the mutual fund or portfolio managed by RBC Global Asset Management Inc. and therefore do not possess any of the rights and privileges of the unitholders of such funds. Details of the applicable Contract are contained in the RBC GIF Information Folder and Contract at www.rbcinsurance.com/gif.

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Financial Planning Managing Money Relationships Wealth Management

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Here are some tips to help make your home safer, inside and out:

How to prevent damage inside your home

Water damage

There are many ways water can damage your home, from leaky pipes to storm damage, and some types of water damage aren’t covered by standard insurance policies. That’s why learning how water can affect your home is extra-important — as is finding ways to keep water at bay.

Common causes of water damage include:

  • Burst pipes due to poor insulation, freezing, and poor maintenance in and around water supply lines
  • Leaks from appliances such as dishwashers and washing machines
  • Seasonal flooding, made worse by improper drainage and property grading
  • Overflows or backups from excessive debris buildup in drains, pipes and eavestroughs
  • Sewer backups and water main breaks
  • Plumbing leaks behind walls or from upstairs units
  • Tree roots growing into pipes or foundation
  • Roof damage

Ways to help prevent water damage include:

  • Have a professional plumber install pipes and plumbing like toilets and sinks and diagnose any issues causing recurring problems
  • Prevent leaks by inspecting appliances, installing leak detectors and upgrading rubber water supply lines to steel
  • Ensure your property is properly graded for drainage to prevent water from entering your home, like adding a slope away from your house in your yard
  • Install drain filters on all sinks and appliances and clean them regularly
  • Have a backwater valve or a sump pump installed. You can also purchase pump alarms that alert you if the pump fails or water levels are too high
  • Regularly clean eavestroughs, downspouts and stormwater pipes. Ensure they are clear, and move water at least four feet away from your house
  • If you’re going away in the winter, drain the plumbing or have someone regularly stop by to check that your heating is working and your pipes aren’t freezing

Read your insurance policy and speak with your insurance advisor to understand what type of water damage is covered by homeowner’s insurance and your specific policy. Ask if your insurance company offers additional optional coverages for water damage.

Electrical damage

What’s hidden behind our walls can have a big impact on the safety of our homes. Ensuring your electrical wiring is up to code can help protect your house against electrical damage. A home inspector or electrician can help you determine if your electrical is safe and not causing any hazards.

Common causes of electrical fire damage include:

  • Faulty electrical systems, or outdated wiring, like knob-and-tube
  • Improper use of appliances and using old or damaged appliances
  • Improper use of extension cords, like connecting extension cords together or overloading them
  • Space heaters

Fire damage

House fire damage, including smoke damage, can have devastating consequences for your home and belongings.

Common causes of house fires include:

  • Cooking with oil or grease
  • Lit cigarettes and candles left burning or knocked over
  • Unattended open flames or heating sources
  • Dryer fires caused by improper use or clogged vents, lint traps and ducts

Tips for fire prevention at home:

  • Ensure smoke detectors and carbon monoxide detectors are working and regularly maintain them
  • Make sure you have fire extinguishers in your home, and everyone knows where they are and how to use them
  • Clean grease off of your stove burners and grills, and make sure when cooking to stay under the flashpoints (the different temperatures that cooking oils can smoke or catch fire)
  • Ensure electrical systems and appliances are in good shape and used properly
  • Avoid smoking indoors, particularly in bed, where fires can easily start
  • Never leave open flames unattended or near pets and children, as they may easily be knocked over
  • Check to make sure your dryer has proper clearance and all traps, vents and ducts are regularly cleaned

Also, create an escape plan with your household so everyone knows what to do and how to get out safely in the event of a fire. A family escape plan can include details like where to meet away from the home (such as at a neighbour’s home) and ways you can help slow the spread of fire; for example, by shutting doors. Online resources from the Ontario Association of Fire Chiefs can help you design a plan and learn more about how to prevent house fires.

Theft prevention

Keeping your home safe also includes protecting it from break-ins, which can lead to damage to your house as well as the expense of replacing stolen items.

Common residential break-ins:

  • Occur during daylight hours — not just at night
  • Are often perpetrated by amateur burglars
  • May result in broken locks, doors and windows as well as other vandalism

Tips to help deter thefts:

  • Install a centrally monitored home security system or video cameras
  • Ensure proper maintenance of all potential entry points
  • Keep valuables in a safe or safety deposit box
  • Set lights on timers
  • Install a motion detector on outside lights
  • Avoid sharing on social media when you are away. (Post your vacation pictures after you’ve returned)
  • Don’t leave hidden keys outside. Your hiding spot might be easily found
  • If you leave, have a trusted neighbour or house sitter regularly check on your home and collect your mail. Ask your insurance company how often you need someone to regularly check on your home during your absence. Most insurance policies require someone to check on your home at least every 7 days.

How to make the outside of your home safer

Wind and weather

Extreme weather cost $3.1 billion in insured damages in Canada in 2022. Weather events, from severe storms to damaging winds, happen across the country all year and can cause damage to exterior elements of your home, including:

  • windows and doors
  • roofing, siding and fencing
  • exposed pipes, vents and ductwork
  • trees and other landscape features

Tips to help avoid wind damage:

  • Proper maintenance can be a big help. Inspect for signs of damage or worn materials and replace elements as they age, like roof shingles
  • Cover exposed pipes and vents to protect them from extreme temperatures
  • Trim trees to prevent damage during storms and call professionals to assess tree health
  • Clear snow and ice
  • Add sealant to windows and weather stripping around doors to help protect from flooding and water damage

How to make a home insurance claim

Despite your best efforts, damage or theft to your property can happen, and that’s when your insurance company can help.

Try to make a claim as soon as you can. Include as much info as possible about anything that’s been damaged or stolen, such as:

  • Age of the items
  • Manufacturer
  • Model or serial number
  • Purchase price and whether it was new or used
  • Types of material used in the items
  • Date of installation
  • Receipts
  • Manuals
  • Photos and proof of ownership

Your insurance claim will be reviewed by a claims advisor, who may handle it over the phone or send a claims adjuster out to assess your claim and provide an estimate on the timing for replacements and repairs. Insurance companies can often refer you to trusted and preferred vendors who guarantee their work and get you back quickly on your feet.

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*Home and auto insurance products are distributed by RBC Insurance Agency Ltd. and underwritten by Aviva General Insurance Company. In Quebec, RBC Insurance Agency Ltd. Is registered as a damage insurance agency. As a result of government-run auto insurance plans, auto insurance is not available through RBC Insurance in Manitoba, Saskatchewan and British Columbia.

This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.

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Topics:

Home Maintenance Security Winter Weather

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