Mortgage Insurance :
CIBC
User our online calculator to compare CIBC's offer. Shopping for mortgage insurance has never been simpler!
Mortgage Insurance : CIBC
User our online calculator to compare CIBC's offer. Shopping for mortgage insurance has never been simpler!
It is readily observed that individual insurance policies provide their policyholders with a flexibility that can’t be found with other the types of mortgage insurance that can be obtained for a mortgage.
In certain cases, this lack of flexibility can result in additional fees. For example, you cannot get disability insurance from CIBC by itself. They also require that you purchase life insurance.
Simply put, it’s impossible to only get disability insurance. An individual insurance policy, like that offered by InfoPrimes, will insure you in case of serious disease or disability, even if you don’t have a life insurance policy.
If you compare the two kinds of insurance, you will find that the products offered by InfoPrimes are more versatile, as you can tailor them as needed, to best suit your family and financial situation.
Clear conditions
If you have received treatment from a doctor prior to purchasing your mortgage insurance, it’s possible that you will run into trouble when it’s time for you to make a claim. In the case of group insurance policies, like those offered by banks, the risk selection is usually made at the time of the claim, which can lead to the invalidation of your insurance policy.
You should remember that, as with other financial institutions, it’s the bank that’s the owner and beneficiary of a group insurance policy. The consumer does not receive a certificate.
Compare prices between CIBC and InfoPrimes
To help you better plan your purchase and all of the related fees, InfoPrimes offers a mortgage insurance calculator. You can compare rates between the insurance that InfoPrimes offers, and that of many other banks, including CIBC..
Price Comparison
| CIBC | Infoprimes | Savings After 25 Years | |
|---|---|---|---|
| Male, 45 years old, non-smoker Mortgage life insurance for a loan of $ 150 000. |
$ 47.42 | $ 23.22 | $ 7,260.00 |
| Husband and Wife, 30 years old, non-smokers Mortgage life and disability insurance. For a loan of $ 250 000. |
$ 62.29 | $ 41.45 | $ 6,147.00 |
| Husband and Wife, 53 years old, non-smokers Mortgage life and disability insurance for a loan of $ 200 000. |
$ 293.02 | $ 154.53 | $ 41,376.00 |
Is mortgage insurance mandatory ?
No. According to Article 439 of the Act respecting the distribution of financial products and services :
“A distributor may not require the entering into of a subordinate contractual obligation for the customer to enter into a contract of insurance with the specified insurer. He may not exercise undue pressure on the client or use fraudulent tactics to induce him to purchase a financial product or service.”
Note that, under certain circumstances, financial institutions may ask you to obtain mortgage life insurance before they approve a loan. However, they cannot force you to obtain that insurance from their financial institution. See Article 22.
If your loan is for commercial or rental property and you have written confirmation which confirms that this life insurance (not applicable to disability) is required for acceptance of the loan, your premiums will be tax deductible under certain conditions. See Article 20-1 E.2.
Understanding mortgage insurance with CIBC
In this table, you can compare the insurance products offered by CIBC and InfoPrimes. You can see that with individual insurance, you have all the flexibility that you need to adjust your insurance policy to your specific needs.
General – Applies to all insurance products
| CIBC | Infoprimes | |
|---|---|---|
| Who owns the contract ? | The Bank | The owner of your choice. |
| What type of insurance is available ? | Canada Life Group No. H 60129-301 | Individual |
| Will I receive a contract ? | No (You will only receive proof of a contract) | Yes |
| Preexisting conditions (Conditions for which you have consulted with or been treated by a doctor) | Usually, the risk selection is made at the time you make a claim, which can result in your insurance being invalidated. | The risk selection is made at the start of the contract. No exceptions to coverage.. |
| Eligibility | You can join if you have a loan from CIBC. | Any loan from a financial institution or recognized organization providing for a minimum payment over a fixed period of time. *Even if they are different and there is more than one. |
| Can I change my mortgage lender and keep my insurance ? | No | Yes |
| Who receives the benefit ? | The Bank | The beneficiary of your choice (spouse, children, etc.) |
| How much is insured ? | The total amount owed | Your Choice |
| Are premiums guaranteed ? | No | Yes |
| Is there a tax payable on the premium ? | A provincial tax is applied in Quebec (9%) and Ontario (8%). There are no taxes in any other provinces. | No. This is an insurance premium of individual persons, so the tax doesn’t apply. |
| Can term insurance be converted to permanent insurance ? | No | Yes |
| Do I pay my premiums with my mortgage payment ? | Yes | It’s up to you |
| If I don’t pay a mortgage rider, does this end my insurance ? | Yes, if the mortgage payment is late by more than 90 days. | No, because your insurance and your mortgage are not linked together |
| Can people who aren’t on the mortgage be insured ? | No | Yes |
| Is the pricing based on tobacco usage? | No | Yes |
Mortgage Life Insurance
| CIBC | Infoprimes | |
|---|---|---|
| What is the maximum age at which insurance can be purchased ? | 64, depending on your health. | 85, depending on your health. |
| At what age does the insurance end ? | Your 70th birthday. | Your choice |
| What is the maximum amount of life insurance ? | $ 750 000 for all mortgages. | Unlimited |
| What happens in the case of multiple insured parties who die simultaneously ? | The balance of the loan will be paid off | You receive the total amount that you chose at the beginning (eg, $ 200 000 per person). |
Mortgage Disability Insurance
Like many other financial institutions, CIBC does not offer protection in case of illness. Remember also that if two insured people simultaneously become disabled, benefits will be paid only in respect of one disability. In the case of InfoPrimes, you get to decide.
| CIBC | Infoprimes | |
|---|---|---|
| Can I get disability insurance without buying life insurance ? | No | Yes |
| What is the maximum age at which insurance can be purchased? | 64 years | 64 years |
| What is the maximum amount of disability insurance ? | $ 3 000 / month | $ 10 000 / month |
| Class of Occupation | Not available. | Depending on your occupation, generally better. |
| Can I choose the percentage of the payment that is protected ? | No. The only option is 100% of the monthly payments. | You get to choose, and can even add other loans. |
| How long do I have to be disabled in order to make a claim? | 60 days | You choose between 30, 60, and 90 days. |
| What is the maximum disability time permissible ? | 24 months | You choose: 24 months, 60 months, or until you reach age 65. |
| Own-occupation (which prevents the insured from engaging in all remunerative work)) | 24 months | Depending on your occupation, it may vary between 24 months, 60 months, or until you reach age 65. |
| What happens in the case of two insured persons simultaneously becoming disabled ? | Benefits are only paid in respect of one disability. | You choose |
Critical Illness Mortgage Insurance
| CIBC | Infoprimes | |
|---|---|---|
| What is the maximum age at which insurance can be purchased ? | Not available | 64 years |
| Can I get critical illness insurance without purchasing life insurance? | Not available | Yes |
| What is the maximum amount of insurance ? | Not available | You choose |
| What diseases are covered? | Not available | You choose between 3, 4 or 25 diseases. |
Can I change my mortgage insurance ?
Individual mortgage insurance, like all contracts offered by InfoPrimes, offers many advantages when compared with the group insurance products offered by most financial institutions. Not only will you have better protection, but the price of our insurance is often cheaper!
If you want to change your insurance to InfoPrimes, rest assured that you can cancel your mortgage insurance with CIBC at any time without being penalized.
WARNING: It is important that you keep your current insurance in effect until your new policy is accepted, issued, and in force.
Compare and save !
In order to help you plan the steps for obtaining a mortgage and understand all of the associated costs, including mortgage insurance, InfoPrimes offers a mortgage insurance calculator. You’ll be better able to compare insurance rates offered by the major banks, including CIBC and InfoPrimes.
Online Mortgage Insurance Calculator!
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