**This post may contain affiliate links. I may receive compensation if you use them.
Each time you activate your credit card with RBC, you will be asked to add BalanceProtector Max. At first glance, BalanceProtector Max may seem like a good idea because it is designed to protect you in the event of job loss, disability, or even loss of life.
No matter your life event, Balance Protector RBC will cover your monthly bill so you don’t fall into debt. The problem is that BalanceProtector insurance is incredibly expensive, and there are better options. To make an informed decision about this type of insurance and if you need it, you need to know its ins and outs.
What is Balance Protector RBC?
RBC’s Balance Protector is designed to help you pay off your credit card debt when you experience significant life challenges. Generally, this insurance covers credit card payments if you are unable to make them yourself due to one of the following situations:
- Loss of job: Your credit card payments may be covered if you get laid off.
- Disability: If you become disabled, this insurance will help you pay off your debts.
- Loss of life: In the unfortunate event of death, the balance will be paid off, so your family doesn’t have to worry about missing payments.
RBC BalanceProtector Max insurance
While the RBC BalanceProtector Max may seem like a good deal, when you look at actual coverage, you may realize that you’re not completely protected. This is because there are limits on how much you can withdraw.
Unemployment insurance
If you lose your job, BalanceProtector Max will cover 25% of your account balance, up to a maximum of $6,250 per month, for up to four months. This means the maximum payout is $25,000. Please note that qualifying job loss includes layoff, dismissal without cause, and strike or lockout. If you’re self-employed, you may also qualify for a payment if your business fails or has to close for at least 30 days due to provincial or federal government policy.
Total disability
Let’s assume that your doctor has diagnosed you with a total disability that prevents you from performing normal job duties. In this case, you qualify for 25% account balance coverage, up to a maximum of $6,250 per month, for up to four months. If you are only partially disabled, your insurance will not apply.
Life
Upon your death, a one-time payment of up to $25,000 will be made. Please note that benefits will not be paid if death occurs by suicide within six months of adding this insurance policy.
RBC BalanceProtector Maximum premiums and payments
RBC BalanceProtector Max premiums seem reasonable at first, but when you add it all up, you realize you’re paying a lot for insurance.
It “only” costs $1.20 per $100 of account balance. This means if your monthly bill is $1,000, you’ll pay $12. If your bill is $2,000, your BalanceProtector premium is $24. If your monthly bill is $10 or less, no premiums apply. Additionally, if you are 66 or older, you no longer qualify for Total Disability and Unemployment Insurance, so your monthly premium is reduced to $0.60 per $100 of your account balance.
These premiums are automatically added to your monthly statement, so you’ll pay them at the same time.
Maximum RBC BalanceProtector eligibility
To qualify for RBC’s optional balance protection insurance, you must meet the following qualifications:
- Have an eligible RBC Royal Bank credit card, such as the RBC Avion Visa Infinite
- Be a resident of Canada
- Be the primary cardholder
- Be between the ages of 18 and 64
- A person who is employed or self-employed
Filing a claim under the RBC BalanceProtector program
If you wish to make a claim, you should contact RBC’s claims agents immediately. Generally, you will be required to provide proof of eligibility, such as a medical certificate or employment documentation. Once approved, payments will be made up to your maximum monthly limits.
Since your application won’t be approved until all your paperwork is in order, there’s always a risk that you won’t get paid when you no longer have any income. Additionally, if you make new charges on your account, you will still be charged monthly premiums.
Is it worth using RBC Balance Protector?
In most situations, the RBC BalanceProtector Max is not worth it. Not only is it expensive, but the premiums you pay are limited. Even the maximum payout of $25,000 upon your death is a bit silly. You’ll already be dead, so you can’t pay them anyway. Your family will only be responsible for your debt if they sign the credit card agreement. RBC may not transfer any remaining balance to family members or additional users.
Alternatives to BalanceProtector Max
Instead of getting credit card balance protection from RBC, you’re probably better off using something else, such as:
- Emergency Fund: Try to build an emergency fund that covers 3-6 months of expenses. If something happens, you’ll have enough money to cover expenses beyond your credit card bill.
- Disability insurance: The cost of disability insurance is really low and pays much more than credit card balance insurance. It also lasts much longer.
- Term life insurance: If you’re young and healthy, term life insurance often costs less than $30 a month for a policy that pays between $500,000 and $1,000,000.
How to apply for RBC BalanceProtector Max
Applying for RBC BalanceProtector Max is a simple process. Once you have activated your qualifying RBC credit card, the final screen will ask if you would like to add BalanceProtector Max. You must accept or decline it before your credit card becomes active.
Alternatively, you can follow these steps:
- Log in to your RBC Online Banking account
- Click on one of the eligible RBC credit cards
- On the right sidebar, click “Get/View Balance Protection Insurance”
- Click “overlap”
- Read the documentation and accept the terms.
Your protection starts immediately after confirmation.
Frequently asked questions
How does BalanceProtectorMax by RBC work?
For every $100 in your monthly bill, you’ll pay $1.20 in premiums. The insurance covers loss of job, total incapacity for work and loss of life. The maximum payout is $6,250 per month for up to four months.
How do I make a claim for RBC Balance Protector?
To submit a claim, please contact RBC Insurance directly. They will ask you for supporting documents in order to process your claim.
How can I cancel my RBC Balance Protector account?
You can cancel your BalanceProtector Max plan at any time by contacting RBC through customer service. This staff will also be able to answer any outstanding questions about your insurance.
What is the process for receiving a refund of BalanceProtector premiums?
If you feel you have not registered for BalanceProtector Max, call RBC immediately and request a refund. If they claim you consented to the service, ask them to prove it by uploading a voice transcript or agreement to the terms online. If you signed up by accident, you can still request a refund if you contact them immediately.
How do I contact RBC about BalanceProtector Max?
You can go online, visit an RBC branch or call 1.800.769.2512 for help.
