There are a lot of life insurance companies in Canada that offer their products. Some specialize only in insurance. There are other entities like financial institutions that have now branched out into the insurance industry. CIBC is one of these.
This is a business entity of the Canadian Imperial Bank of Commerce. Which is considered to be one of the five biggest banks in Canada. This bank came about as a merger between the Canadian Bank of Commerce and the Imperial Bank of Canada. As a financial institution, it is involved in different financial sectors with Insurance being one of many.
- 1 Different Types of Life Insurance
- 2 CIBC Term Life Insurance
- 3 CIBC Term Policy Conditions
- 4 Premium Ratings
- 5 Risk Class
- 6 Death Benefits Payout
- 7 Downsides to CIBC Term Insurance Policies
- 8 Conclusion
Different Types of Life Insurance
Out of all these different options of life insurance products CIBC Has Chosen To Focus on Term Life Insurance.
CIBC Term Life Insurance
Within the term life insurance category, CIBC is offering two options.
CIBC 10 Year Term Life Insurance
Beneficiaries of this policy would receive a lump sum payment of the value of the policy in the event of the insured’s death.
Qualifications for CIBC Term Life Insurance
- As with any insurance company, CIBC has set criteria for who can apply for this life insurance coverage.
- The applicant must be between 18 to 65 year of age for term ten policy or the term 100 policy.
- For the term, twenty policy applicants must be between 18 to 55 years of age.
- All applicants must be residents of Canada.
What Are the Benefits of the CIBC 10 Year Term Life Insurance?
- You have options to choose between $50,000 to $5,000,000 worth of coverage.
- If an insured becomes terminally ill there is an option to receive ½ of the policy value provided the diagnosis states the insured has less than twelve months of life left.
- The applicant can choose who they want their beneficiary to be.
- Monthly premium payments remain the same during the ten-year term of the policy.
- If the term is completed then renewed the premiums will only increase at the time of renewal.
- This term life policy can be kept in effect up to the age of seventy-five.
- There is an option to cancel the policy within a thirty day review period.
What Are the Benefits of the CIBC 20 Year Term Life Insurance?
- This policy mirrors the ten-year term life except the term is twenty years rather than ten years.
- The policy premiums will not change over the twenty-year period.
- There is less hassle of having to renew the policy as frequently.
- With a twenty year term, the age of termination of the policy can be converted for the lifetime of the insured under the CIBC Term Life Insurance Policy.
CIBC 100 Term Life Insurance Policy
This a third option that CIBC is giving to those clients who are interested in their insurance products. Its benefits are;
- The cost of the premiums remains the same until the policy is terminated.
- A Term ten policy can be converted to the 100 Term.
- A term 20 policy can be converted to the term 100.
- Premiums will remain the same during the lifetime of the policy.
- To convert a policy the coverage can be no less than $50,000.
CIBC Term Policy Conditions
Every insurance policy has conditions that the insured must be aware of. For the CIBC term life insurance some of these are;
Limitation of Coverage
- Some insurers take out more than one CIBC life insurance policies. If they do then the maximum, the company will pay out on death in ten million dollars. Even if all of the CIBC policies in the insured’s name amounted to more than this.
Terminal Illness Benefit
- There is an option with these term life policies with CIBC to take a portion of the insurance money out by the insured if they are diagnosed with a terminal illness where they will not live past twelve months. This is only allowed by a one time advance, and it can be no more than 50% of the value of the policy. There could be restrictions on the 50% if the insured has more than one policy with CIBC. The max. amount in this case that would be issued would be $250,000.
Everyone wants to know how much their premiums are going to be for their CIBC term life insurance. This will vary depending on the individual and their circumstances. The cost of the premiums is determined through premium rating. There is an option for insured’s to ask for a change in the premium rating or to have the rating eliminated.
As an insured, you will be put into a risk classification. You should make yourself aware of what this is. You are allowed during your first policy to ask for a change in your risk classification. There may be a circumstance that has changed from your initial application that will now allow you to be reduced to a lower risk. But, you can only take advantage of this once and only during your first policy.
Death Benefits Payout
CIBC follows the standard procedures for a payout of death benefits. They have the right to investigate the circumstances of a death before payouts are made. This may include;
- Requesting an autopsy report
- Proof that the death occurred during the time the insurance was in effect
- The cause of death
- Any events leading up to the death
- Date of birth of the deceased
- Whether the deceased was a smoker
- The legal rights of the beneficiary
The death benefit will not be paid out if;
The death occurred before the second year anniversary of the policy if the cause of death was caused directly or indirectly by actions of the insured such as self-harm, attempted suicide or suicide.
Also, the death benefit will not be paid if CIBC determines there was a misrepresentation by the insured or an omission of required information. Or if any fraud relating to the insurance policy was committed.
Downsides to CIBC Term Insurance Policies
Included in the cost of the premiums is a monthly or annual fee.
For those who want a simple life insurance policy that will cover the basic needs of the life insurance shopper than these CIBC term policies should be sufficient. Again, everyone’s insurance needs are different. The insurance applicant should still do a price comparison of the cost of the premiums for these types of policies against similar policies. Only then can an informed decision be made. It is also critically important that no matter which policy is going to be bought is that it be read and understood in its entirety.