CIBC Mortgage Life Insurance Points to Consider

CIBC’s Mortgage Life Insurance plan is underwritten by Canada Life. The policy provides up to $750,000 of coverage. Some additional benefits of the policy include:

1. Premiums are included with the mortgage payment. This can add a layer of simplicity for many consumers, but, at the same time, it may be difficult to see exactly what is your insurance premium and what is your mortgage payment. Of course, this information can be requested by CIBC.

2. As stated above, coverage can be obtained for up to $750,000

3. If your CIBC mortgage is $500,000 or less, you can generally obtain coverage without a medical. (meaning, if you can answer no to all the health questions on the insurance application) the coverage will be immediately approved. As with any insurance application, it is important that you pay close attention to the questions. An incorrect answer could affect the payout of your claim

4. Affordable Rates – In younger ages and for smokers, the premiums can be very affordable. Premium rates are based on your age at the date of application, and remain unchanged throughout the mortgage amortization period, unless the mortgage principal amount is refinanced, or the mortgage is transferred to another property.



On the down side ….

1. The coverage ends when the insured turns age 70.

2. The coverage declines as your mortgage declines and premiums are less competitive for non-smokers and older applicants.

3. On larger mortgages, the maximum face amount of $750,000 may not be sufficient.

4. The plans do not offer a conversion privilege, so if the insured pays his, or her, mortgage off. The coverage is not convertible to a permanent plan.

For more details on CIBC mortgage life insurance versus individual life insurance, please contact us at 1-866-899-4849, or visit our Instant Quote Page.

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LSM Insurance
LSM Insurance

Thanks for the question. The questions can vary depending on the lending institution.

arlene
arlene

what are the mortgage insurance application health questions?