Waterloo, Ont.-based Equitable Life of Canada is working with Bingham Group Services Corp. (BGS) to provide affordable group creditor insurance to individuals and their families, the companies announced on Monday.

Beginning Sept. 1, Vancouver-based BGS will begin offering creditor insurance underwritten by Equitable Life to its mortgage, general lending and auto networks across the country.

Group creditor insurance protects customers from financial debt obligations, including loans, leases or mortgages, if they become disabled, critically ill or lose their life. Having creditor insurance coverage on those obligations ensures that payments continue to be made during a disability or critical illness, or that the outstanding debt is paid in the event of death.

Coverage options include life insurance up to $1 million and disability insurance up to $6,000 per month. As well, coverage for a critical illness, including stroke, heart attack and life threatening cancer, is available for general lending up to $500,000 when paired with life insurance.

Creditor insurance without health questions and medical evidence is available for mortgages up to $500,000, general lending up to $200,000 and auto loans up to $100,000.

“We’re very pleased to work with BGS to offer this unique product,” says Michael Dawe, senior vice president, group benefits at Equitable Life, in a statement. “It provides people with peace of mind that their debts won’t become a burden if the unexpected occurs.”

“If a customer is unable to make their payments because of a serious illness or injury, creditor insurance helps ensure that the loan stays in good standing and that their credit rating is protected,” says Cheryl Martin, vice president with BGS. “And in the event of the death of the insured, the debt is paid off so that remaining family members don’t lose their home or face an unnecessary financial burden.”