This guide puts the five big bank plans side by side, turns their rates into yearly costs, and shows when the cover pays and when it does not.

The short answer

For most people, credit card balance insurance costs more than it is likely to pay back. The big bank plans charge $0.99 to $1.20 per $100 you owe each month, plus tax, so a steady $3,000 balance costs $356.40 to $432 a year in premiums. Over about seven to eight and a half years, you would pay the whole balance in premiums.

The Financial Consumer Agency of Canada (FCAC) calls the product expensive and says you may not need it if you pay your balance in full each month or have enough savings to pay it off. It can still fill a gap for someone with a carried balance, no savings and no other insurance, but only if they qualify when it counts.

What the five big bank plans charge

Each bank publishes its rate on a product page or plan summary. The rate is charged every month on what you owe, so the premium rises and falls with your balance.

Rates for cardholders under 66, before tax, checked October 30, 2026, with the balance held at $3,000 for 12 months. Scotiabank’s maximum is for death and critical illness. Its Basic Protection costs $0.95 per $100 but has no job loss or disability cover.

Four plans give older cardholders a lower rate once job loss and disability cover ends. RBC drops to $0.60 per $100 after age 66, TD charges $0.60 at or over 66 for life cover only, Scotiabank charges $0.49 from age 70 for life cover only, and CIBC charges $0.39 after age 70 for life cover only. RBC, TD, Scotiabank and CIBC also stop counting the balance above $25,000 when they work out the premium.

Every plan adds applicable taxes on top. RBC notes that the Quebec tax rate on insurance premiums rises from 9% to 9.975% on January 1, 2027.

Turn the rate into a yearly percentage

A rate of $1.20 per $100 a month sounds small. Multiply it by 12 and it is 14.4% of your balance every year. That is a cost on top of the interest the card already charges.

• RBC and TD: 14.4% a year. The premiums equal your balance after about 6.9 years.
• Scotiabank Comprehensive: 14.28% a year, or about 7 years.
• BMO: 12% a year, or about 8.3 years.
• CIBC: 11.88% a year, or about 8.4 years.

The FCAC runs its own example at $0.95 per $100. On an average daily balance of $2,870.96, the monthly premium is $27.27, or almost $330 a year before tax if the balance stays the same. The FCAC also notes that with daily-balance plans you are still charged if the card had a balance at the end of any day in the month. Scotiabank calculates its premium daily, while RBC and CIBC use the balance on your statement date.

A worked example: two years of cover, then a job loss

Say you carry a steady $3,000 on a Scotiabank card with Comprehensive Protection. You pay about $35.70 a month on average, or $856.80 over two years before tax. Then you lose your job and stay unemployed for six months.

Scotiabank covers 20% of your monthly outstanding balance, up to $10,000 a month, for up to 5 months. That is $600 a month and $3,000 in total, which clears the card. In this case the cover pays back about 3.5 times what you put in.

Now change one fact. If you lost the job within 30 days of signing up, Scotiabank pays no job loss benefit, and the $856.80 is gone. If you never lose your job, the same is true. This is how all insurance works, but it shows why the price matters: you pay every month, and the payout depends on a specific event and a list of conditions.

Hypothetical example using Scotiabank’s published rate and job loss benefit. It assumes the balance stays at $3,000 and the cardholder meets every eligibility rule.

The conditions that decide whether it pays

The rate is only half the story. The plan summaries list waiting periods, work-hour minimums and exclusions that can stop a claim.

• You must be working enough hours. TD requires at least 25 hours a week for 3 months with the same employer. Scotiabank requires at least 20 hours a week for 90 consecutive days before the job loss. RBC requires 16 hours a week, and CIBC 20 hours.
• Some job losses do not count. TD’s plan summary says it pays no job loss benefit if you are self-employed, have a seasonal job, quit, are fired for cause, or are on strike or locked out.
• There is a waiting period. BMO and Scotiabank exclude a job loss within 30 days of coverage starting, and TD job loss cover starts 30 days after enrolment. CIBC’s disability, critical illness and job loss cover starts on the 31st day.
• You must be off work for a while. TD and RBC require more than 30 days, or at least 30 consecutive days, without work. CIBC requires 30 consecutive days of unemployment or disability.
• Pre-existing conditions can be excluded. Scotiabank and CIBC both refuse some critical illness claims in the first 6 months of coverage if the illness comes from a pre-existing condition.

The FCAC adds two points that are easy to miss. Benefits do not cover purchases you make after the date of loss. And credit card balance insurance is not sold by a licensed insurance representative, so read the certificate of insurance yourself before you agree to it.

What each plan covers

All five plans also pay a benefit on death. Both Scotiabank plans, Basic and Comprehensive, also include a hospitalization benefit.

When it can make sense, and when it does not

The FCAC suggests comparing the cost and coverage with other options before you buy, such as a term life policy, a disability policy or your employer’s plan. Those cover more than one card, and the benefit does not shrink as you pay the balance down.

If you carry a balance because money is tight, the premium itself can make the balance harder to pay down. The $36 a month in the RBC or TD example would go straight to the principal if you sent it to the card instead. Our guides to paying only the minimum and whether a balance transfer pays off show other ways to bring a balance down.

How to cancel balance insurance

1. Find the plan on your statement. The premium appears as a monthly charge. Note the plan name and when you enrolled.
2. Check the refund window. All five plans refund every premium if you cancel within 30 days. After that, CIBC’s certificate says there is no refund, so cancelling sooner saves money.
3. Call the number on the certificate. The FCAC says you usually need to contact the insurance company, which is often different from your bank.
4. Ask for written confirmation. Keep the date you cancelled and check the next two statements to make sure the charge has stopped.
5. Complain if you never agreed to it. The FCAC says you must give express consent before you are charged. If you did not, raise it with your bank first, and use the 56-day complaint process if it is not fixed.

If you were charged interest you did not expect while sorting this out, our guide to the credit card grace period explains when interest applies.

Frequently asked questions

• Sources, checked October 30, 2026: FCAC: Credit card balance insurance (modified 2025-10-15); RBC: BalanceProtector Max; Scotiabank: Scotia Credit Card Protection; BMO: Credit Card Balance Protection Enhanced; BMO: plan summary (form 2020H31); TD: Credit Card Payment Protection; TD: Payment Protection Plan summary (form 2023C26); CIBC: Payment Protector certificate of insurance (form F89638 02/2025).
• Method: Yearly premiums were calculated in Python as balance divided by 100, times the monthly rate, times 12, then re-checked with a day-by-day and month-by-month simulation over 12 months. The FCAC worked example ($2,870.96 at $0.95 per $100 equals $27.27 a month) was reproduced as a check. Taxes are excluded.

Important: This guide is general information, not financial, insurance or legal advice. Plan terms, rates and exclusions can change, and your certificate of insurance is the document that applies to you. Gizly is not paid by any bank or insurer mentioned here. See our affiliate disclosure.