Balance Protector RBC: Why you likely don’t need BalanceProtector Max

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Whenever you activate a credit card with RBC, you’ll be prompted to add BalanceProtector Max. At first glance, BalanceProtector Max may seem like a good idea since it’s designed to cover you in the event of a job loss, disability, or even loss of life.

Regardless of your life event, Balance Protector RBC will cover your monthly bill so you don’t go into debt. The problem is that BalanceProtector insurance is incredibly expensive, and better options exist. To make an informed decision about this type of insurance and if you need it, you need to know the ins and outs.

What is Balance Protector RBC?

Balance Protector RBC is designed to help you with your credit card debt in the event of significant life challenges. Essentially, this insurance covers your credit card payments when you can’t make them yourself due to one of the following situations:

  • Job Loss: Your credit card payments may be covered if you’re laid off.
  • Disability: Should you become disabled, this insurance can help you with your payments.
  • Loss of life: In the unfortunate event of death, your balance will be paid off, so your family doesn’t need to worry about any missed payments.

RBC BalanceProtector Max Insurance Coverage

While RBC BalanceProtector Max may sound like a good deal, when you look at the actual coverage, you may realize that you’re not completely protected. That’s because there are limits to how much you’ll get paid out.

Job loss coverage

If you lose your job, BalanceProtector Max covers 25% of your account balance, up to a maximum of $6,250 each month, for up to four months. That works out to a maximum payout of $25,000. Note that a qualifying job loss includes being laid off, dismissal without cause, and strike or lockout. If you’re self-employed, you can also qualify for the payment if your business fails or you’re forced to close for at least 30 days due to Provincial or Federal Government policy.

Total Disability

Suppose you’re considered totally disabled by your doctor, and it prevents you from performing the regular duties of your employment. In that case, you’d qualify for the 25% account balance coverage, up to a maximum of $6,250 monthly, for up to four months. If you’re only partially disabled, then the insurance wouldn’t apply.

Life

In the event that you pass away, a single payment of up to $25,000 will be paid. Note that no benefit will be paid if the death is from suicide within six months of adding this insurance policy.

RBC BalanceProtector Max Premiums and Payments

The RBC BalanceProtector Max premiums sound reasonable initially, but when you add everything up, you’ll realize you’re paying a lot to be covered.

It costs “just” $1.20 per $100 of your account balance. That means if your monthly bill is $1,000, you’ll pay $12. If your bill is $2,000, your BalanceProtector premium is $24. No premiums apply if your bill is $10 or less for the month. Also, if you’re 66 or older, you don’t qualify for total disability and job loss coverage anymore, so your monthly premium is reduced to $.60 per $100 of your account balance.

These premiums are automatically added to your monthly statement, so you’ll pay it at the same time.

RBC BalanceProtector Max 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
  • Employed or self-employed

Making a RBC BalanceProtector Claim

If you need to make a claim, you should contact RBC’s claim agents immediately. Generally, you’ll be required to provide proof of eligibility, such as a doctor’s note or record of employment. Once approved, payments will be made, up to the monthly maximum limits.

Since a claim won’t be approved until all your paperwork is in order, there’s always a chance that you won’t get paid when you no longer have an income. In addition, you’ll still be charged monthly premiums if you’re making any new charges to your account.

Is RBC Balance Protector Worth It?

In most situations, RBC BalanceProtector Max is not worth it. Not only is it expensive, but the premiums you get paid are capped. Even the maximum payout of $25,000 upon your death is a bit silly. You’ll already be dead, so it’s not like you can pay them anyway. Your family would only be responsible for your debt if they co-signed for the credit card. RBC can’t go over family members or supplementary users for any remaining balance.

BalanceProtector Max alterantives

Instead of getting credit card balance protection from RBC, you’d likely be better off with something else, such as:

  • Emergency fund: Try to build an emergency fund of 3 – 6 months worth of expenses. If anything happens, you’ll have enough money to cover things beyond just your credit card bill.
  • Disability insurance: The cost of disability insurance is realtively low and it pays signifnicaly more than credit card balance protection insurance. It also lasts a lot longer.
  • Term life insurance: If you’re young and healthy, term life insurance is often less than $30 a month for for a policy that pays $500,000 to $1,000,000.

How to Apply for RBC BalanceProtector Max

Applying for RBC BalanceProtector Max is a straightforward process. When you activate an eligible RBC credit card, the last screen asks if you want to add BalanceProtector Max. You must accept or decline it before your credit card becomes active.

Alterantively, you can follow these steps:

  1. Sign into your RBC Online Banking account
  2. Click on one of your eligible RBC credit cards
  3. On the right sidebar, click “Get/View Balance Protection Insurance”
  4. Click “get covered”
  5. Read the documentation and agree to the terms and conditions.

Your coverage starts immediately upon confirmation.

Frequently Asked Questions

How does the BalanceProtectorMax from RBC work?

You’ll pay $1.20 in premiums per $100 of your monthly bill. This insurance covers job loss, total disability, and loss of life. The maximum payout is $6,250 each month for up to four months.

How do I file a claim with the RBC Balance Protector?

To file a claim, you need to contact RBC’s insurance department directly. They’ll ask you for supporting documents so they can process the claim.

How can I cancel my Balance Protector RBC?

You may cancel your BalanceProtector Max plan at any time by contacting RBC through customer service They’ll also be able answer any outstanding questions you may have about your coverage.

What is the process for receiving a refund on my BalanceProtector premiums?

If you believe you didn’t sign up for BalanceProtector Max, call RBC immediately to request a refund. If they claim that you did opt in for the service, ask them to prove it by providing a voice transcript or your agreement to the terms online. If you signed up by accident, you can still ask for 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 assistance.

About Barry Choi

Barry Choi is a Toronto-based personal finance and travel expert who frequently makes media appearances. His blog Money We Have is one of Canada’s most trusted sources when it comes to money and travel. You can find him on Twitter:@barrychoi

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