If you are eligible, the LPPP provides the following coverages in connection with your
Parachute Loan account:
· Involuntary Unemployment coverage: If you lose your job, the coverage could make up to 12 months of payments, based on your payment frequency, towards your outstanding Parachute balance. This coverage also extends to self-employed individuals.
· Disability coverage: If you become disabled and unable to work, the coverage could make up to 12 months of payments towards your outstanding Parachute balance.
· Critical Illness coverage*: If you or your spouse become diagnosed with a Critical Illness for the first time and survive that First Diagnosis for at least 30 days, the coverage will pay Parachute, an amount equal to the Outstanding Balance at the date of First Diagnosis of the Critical Illness, to a maximum of $25,000.
· Death with Dismemberment coverage**: The coverage will pay Parachute, on Your behalf, upon due proof of the death or dismemberment of You or Your spouse occurring after the effective Date, and while You are covered under the Policy, an amount of insurance equal to the Outstanding Balance of Your Parachute loan amount at the date of death or dismemberment to a maximum of $25,000. If the death or dismemberment of You and Your Spouse occurs simultaneously, only one benefit will be paid.
*The Critical Illness benefit will be paid only once. When You are simultaneously disabled, involuntarily unemployed or involuntarily unemployed as a self-employed, You are entitled to benefits only under one coverage.
** Before the age 65 (71 in BC), the Loan Payment Protection Program does not require that death arise from accidental circumstances. Beginning from age 65 (71 in BC) and thereafter, the LPPP only provides coverage if death arises from accidental circumstances and death must occur within 90 days of the accident.