“Interest rates: A selling point for credit insurance,” headlined last year's article on the InsuranceINTEL product comparison centre chart. Since then, the Bank of Canada's key interest rate has fallen significantly, from 5% in April 2024 to 3% on Jan. 29, 2025.
Falling interest rates were already beginning to bring some relief to mortgage holders in the third quarter of 2024, according to the Equifax Canada Market Pulse report on consumer credit trends, published last November by credit information multinational Equifax.
Across all loans, 1.3 million Canadians missed a credit payment in the third quarter of 2024, up 10.6% from the third quarter of 2023. “While delinquency rates remain elevated year-over-year, the rising pace of missed payments has begun to slow, partially due to the Bank of Canada’s recent rate reductions,” the credit firm notes.
Equifax adds that lower interest rates have also enabled more Canadians to pay off their credit card balances in full.
A new player on the scene
As interest rates become less threatening, peace of mind remains the central argument advisors use to convince borrowers to insure their debts.
In January 2025, Assumption Life added a credit insurance product to InsuranceINTEL: Whole or Term Life Insurance with Disability Income (based on loans) Rider and/or Critical Illness Rider.
The New Brunswick-based mutual insurer had already been offering this product for several years. It decided to list it on InsuranceINTEL to make it more widely known. “Following comments from some advisors, we felt it was appropriate to highlight our competitive offering and ensure our presence in this category, particularly as an insurer specializing in mortgage protection,” explained Samuel Charron, Product Manager, Individual Insurance, Sales and Marketing, Assumption Life, in an interview with Insurance Portal.
Charron elaborated further on the nature of the feedback received. “When it came time to get information to compare with what's offered elsewhere, advisors would ask us 'Why aren't you here?'. This feedback was an opportunity to shed more light on this product,” he explains.
Assumption Life joins five other insurers in the 2025 comparative table, prepared by InsuranceINTEL for the Insurance Portal (see end of article). Eight products are listed.
In addition to Assumption Life, the following insurers have at least one credit insurance offering: Beneva (Term Plus), Desjardins Insurance (SOLO Loan Insurance), Humania Insurance (Payment Insurance - Accident and Sickness and Insurance Without Medical Exam - Debt), iA Financial Group (Pick-A-Term and disability credit rider and Universal Loan Insurance), and UV Insurance (Life Insurance with Credit Insurance Rider).
10 loan types covered
Ten loan categories are covered. Most insurers offer at least one product that covers all loan types. The exceptions are Beneva and UV Insurance, which do not cover credit card balances.
Among other exclusions, Insurance Without Medical Exam - Debt, from Humania Insurance, does not cover business loans, and Pick-A-Term and disability credit rider, from iA Financial Group, does not cover leverage loans.
The age limit for insuring loan balances varies according to the insurer and the coverage selected. In creditor life insurance, Assumption Life stands out by accepting applications up to age 80 for non-participating whole life insurance, and up to age 75 for participating life and term insurance. Beneva and iA Financial Group are close behind, accepting applications up to age 75 for their Term 10 products.
The age limit for taking out creditor disability or critical illness insurance is generally 60.
