CIBC Life Insurance in Canada Review

CIBC is one of Canada’s largest and most established financial institutions and a key player among top life insurance companies in Canada. Originally founded in 1867 as the Canadian Bank of Commerce, CIBC was formed in 1961 through the merger of the Canadian Bank of Commerce and the Imperial Bank of Canada. Today, CIBC has grown to serve millions of clients across Canada and around the world.

In this detailed guide, we will explore everything you need to know about CIBC Life Insurance, including the types of policies available, costs, how to apply, and whether it is the right choice for your needs.

What is CIBC Life Insurance?

CIBC Life Insurance Company is the wholly-owned life insurance subsidiary of the Canadian Imperial Bank of Commerce (CIBC). Headquartered in Toronto, CIBC Life Insurance provides a variety of insurance products to Canadians.

CIBC Life Insurance offers the following main types of life insurance coverage:

• Term Life Insurance
• Permanent Life Insurance
• Critical Illness Insurance
• Accidental Death Insurance

Backed by the financial strength and stability of CIBC, one of Canada’s “Big Five” banks, CIBC Life Insurance provides life insurance solutions designed to be simple and convenient for Canadians to purchase and manage.

What Types of Life Insurance Does CIBC Offer?

Let’s take a closer look at the specific life insurance policies available from CIBC Life Insurance.

CIBC Term Life Insurance

CIBC offers term Life Insurance which provides temporary coverage for a set period of time, known as the “term.” CIBC offers both 10-year term and 20-year term life insurance options.

Key features include:

• Available coverage amounts from $50,000 up to $5 million
• Level premiums locked in for the duration of the 10 or 20-year term
• Option to convert to permanent life insurance up to age 75
• Coverage expires at age 75
• Can apply online without a medical exam for coverage up to $500,000

CIBC 10-Year Term Life Insurance

The CIBC 10 Year Term Life Insurance policy provides affordable protection with premiums locked in for the first 10 years.

This policy is well suited for temporary insurance needs like mortgages, child-raising costs, and debt repayment. It’s available for applicants between 18-65 years old.

At the end of each 10 year term life insurance, the policy can be renewed for another 10 years at higher premiums locked in for the next 10 years, up until the expiry age of 75.

Ideal for:

• New parents looking to protect their family
• Young adults buying a home
• Individuals needing coverage for major debts or expenses in the near term

CIBC 20-Year Term Life Insurance

The CIBC 20 Year Term Life Insurance policy keeps premiums constant for the first 20 years. This can be an ideal duration for protecting young families.

This policy is available for applicants between 18-55 years old. It also renews every 20 years with higher locked-in premiums until the expiry age of 75.

Ideal for:

• Parents with new babies or young children
• Individuals needing an extended period of coverage
• Anyone looking to lock in lower premiums for 20 years

Terminal Illness Benefit

Both the 10 Year and 20 Year Term policies from CIBC Life Insurance include an optional Terminal Illness Benefit rider. This provides the option to access up to 50% of the coverage amount, up to $250,000, if diagnosed with a terminal illness with less than 12 months to live.

This tax-free advance payment can help cover medical and end-of-life costs not covered by provincial healthcare or other insurance.

Converting CIBC Term Life Insurance to Permanent Coverage

CIBC Term Life policyholders have the flexibility to convert their 10-year or 20-year term policy to permanent life insurance.

This term to 100 permanent policy from CIBC continues coverage for life with level premiums. To convert their term policy, the insured must be under age 65.

Converting to permanent insurance allows clients to maintain their existing coverage without any gaps in protection. It also prevents having to re-qualify medically for a new policy later in life when health conditions could arise.

Ideal for:

• Individuals looking to lock in insurability while young and healthy
• Those seeking lifetime protection into retirement years
• Anyone wishing to avoid future medical underwriting

CIBC Permanent Life Insurance

In addition to the term to 100 conversion option, CIBC Life Insurance also offers a guaranteed acceptance life insurance products for applicants aged 40-74.

CIBC Guaranteed Acceptance Life Insurance

CIBC offers the Guaranteed Acceptance Life Insurance plan which provides simplified issue life insurance with no medical exam required.

It offers coverage from $5,000 up to $25,000 for applicants between ages 40-74. The premiums are level and will not increase as long as the insured’s smoking status remains the same.

As a permanent life insurance policy, it provides lifelong protection. Other key features include:

• A spousal coverage option is also available
• Accidental death benefit pays 5x the coverage amount for death from accidents prior to age 80
• The living benefit pays 50% of the death benefit if diagnosed with a terminal illness (after the policy is in effect for 2 years)

This guaranteed acceptance option from CIBC Life Insurance can provide essential coverage for older Canadians who may not qualify for traditional underwritten life insurance.

Ideal for:

• Seniors looking to cover final expenses insurance
• Individuals unable to qualify for fully underwritten life insurance
• Anyone seeking a small amount of permanent insurance

Spousal Coverage

The CIBC Guaranteed Acceptance Life Insurance plan allows you to add coverage for a spouse between ages 40-74 as well. They do not need to complete any medical underwriting.

Spousal coverage amounts range from $5,000 to $25,000. Adding a spouse can help provide important protection for couples later in life.

CIBC Critical Illness Insurance

CIBC Critical Illness Insurance provides a lump-sum payment if diagnosed with a covered condition. It includes illnesses such as:

• Cancer
• Heart attack
• Stroke
• Coronary artery bypass surgery

The lump-sum payment from CIBC Critical Illness Insurance can be used to help pay bills that may not be covered by provincial healthcare or disability insurance. This gives families an added financial cushion when facing a serious health crisis.

Similar to the term life insurance, CIBC offers 10-year and 20-year critical illness policies. The available coverage amounts range from $15,000 up to $200,000.

At renewal, premiums will increase based on the insured’s age. However, premiums are locked in for each 10 or 20 year term.

Covered Critical Illness Conditions

Here is the full list of the covered critical illness conditions under a CIBC Critical Illness Insurance policy:

• Life-threatening cancer
• Heart attack
• Coronary artery bypass surgery
• Stroke
• Major organ transplant
• Kidney failure
• Aortic surgery
• Alzheimer’s disease
• Benign brain tumour
• Blindness
• Coma
• Deafness
• Heart valve replacement
• Loss of speech
• Major burns
• Major organ failure on the waiting list
• Motor neuron disease
• Multiple sclerosis
• Occupational HIV infection
• Paralysis
• Parkinson’s disease
• Severe rheumatoid arthritis

Critical Illness Insurance Uses

The payout from CIBC Critical Illness Insurance can be used to:

• Pay for private treatment or experimental therapies
• Cover loss of income if unable to work
• Pay for special equipment or home modifications
• Allow early retirement due to health limitations
• Provide funds to enjoy life and spend time with family

CIBC Accidental Death Insurance

The CIBC Accidental Death Insurance policy provides additional protection in the event of an injury leading to death.

Key features include:

• Guaranteed acceptance, no medical exam required
• Available for ages 18-64
• Coverage amounts from $25,000 up to $200,000
• Spousal coverage option available
• Covers accidents worldwide
• Also includes a hospitalization benefit option for accidents

Purchasing an Accidental Death Insurance policy from CIBC Life Insurance can supplement existing life insurance coverage. It also serves as a simple option for those who may not qualify for traditional life insurance.

Ideal for:

• Young families wanting extra protection
• Individuals with dangerous hobbies or occupations
• Anyone unable to qualify for fully underwritten life insurance

Spousal Coverage

The CIBC Accidental Death Insurance policy allows you to add the same coverage for a spouse between the ages of 18 and 64. No medical underwriting is required for spousal coverage either.

Adding accidental death coverage for a spouse provides additional protection for families in case of an accidental passing.

Other Insurance from CIBC

In addition to the life and critical illness insurance products offered through CIBC Life Insurance, CIBC also provides other insurance options directly:

Travel Insurance

CIBC offers comprehensive travel insurance plans to protect Canadians when travelling domestically or abroad. Travel medical, trip cancellation, interruption, and baggage coverage are available.

Creditor Insurance

CIBC provides creditor insurance options like mortgage insurance, credit card balance protection, and creditor’s disability/life insurance to help Canadians protect finances and debt obligations.

Home and Auto Insurance

CIBC bank clients can access home and auto insurance policies underwritten by Aviva Canada. Bundling with your existing CIBC products can provide discounts.

Mobile Device Insurance

Protection for cell phones and tablets is available through CIBC’s mobile device insurance plans. Extended warranties, loss and theft coverage, and device replacement is included.

How Much Does CIBC Life Insurance Cost?

The cost of CIBC Life Insurance will depend on many factors, including:

• Type of policy – Term, permanent, critical illness, accidental death
• Coverage amount – Death benefit or lump-sum amount
• Term length – 10 years or 20 years
• Age – Premiums are higher for older applicants
• Gender – Premiums are generally lower for females
• Smoking status – Premiums are significantly higher for smokers
• Health and lifestyle – Medical history and risky hobbies/occupations may increase premiums

To give an idea of how these factors impact pricing, here are sample monthly premiums for a healthy, non-smoking male with different CIBC Life Insurance policies:

CIBC Term Life Insurance Sample Premiums

*Premiums quoted are for 10-year term life insurance from CIBC Life Insurance. For 20 year term, the premiums would be moderately higher.

CIBC Critical Illness Insurance Sample Premiums

*Premiums quoted are for a 10-year CIBC Critical Illness Insurance policy.

CIBC Accidental Death Insurance Sample Premiums

Ultimately, the best way to determine pricing is to get a personalized quote directly from CIBC Life Insurance based on your specific situation. We’ll cover how to request a quote later in this guide.

How to Apply for CIBC Life Insurance?

Applying for life insurance through CIBC Life Insurance is straightforward. Here is an overview of what to expect during the application process:

Step 1: Request a Quote

You can get a free preliminary quote by using the CIBC Life Insurance quoting tool online or by speaking with a CIBC advisor.

Step 2: Complete Application

If the quoted premium meets your needs, you can submit a full application. Depending on the policy type and coverage amount, you may be able to complete and submit the application entirely online or may need to also speak with an advisor and schedule any medical requirements.

For term life and critical illness insurance, you can apply online without a medical exam for coverage up to $500,000 if you are under 50 years old. Higher coverage amounts or older ages require a paramedical exam.

The guaranteed issue permanent life insurance plan up to $25,000 can also be purchased directly online without any medical requirements or health questions.

Online Application

The online application process is convenient, taking only about 10-15 minutes to complete. CIBC may follow up for additional details or to schedule a paramedical exam, if needed.

Applicants must have their banking information, beneficiary details, ID, and contact information handy when starting the online application.

Advisor and Paramedical Exam

For higher coverage amounts or if you have certain medical conditions, an advisor will guide you through the application process.

This will involve scheduling a paramedical exam, where a nurse will meet with you in-person to take measurements, blood/urine samples, and record your medical history.

Step 3: Underwriting

For medically underwritten policies, CIBC will review your application, medical history, exam results, and any other required documents to assess your eligibility and risk profile.

The underwriting process determines the final premium rate offered based on your age, gender, lifestyle, family medical history, and other risk factors.

Step 4: Issue Policy

Once approved, CIBC Life Insurance will issue your policy documents, and coverage will take effect after you pay your first premium payment.

You will receive a policy package by email and mail that includes your policy documents and instructions on how to register for online access.

Is CIBC Life Insurance Worth It?

CIBC Life Insurance can make sense for many Canadians due to its convenience and backing by a major financial institution. However, there are some key advantages and disadvantages to consider when deciding if CIBC life insurance is the right option for your needs.

Pros of CIBC Life Insurance

Easy Online Application

Smaller coverage amounts can be applied directly online without having to take any medical exams or speak to an advisor. This is convenient compared to providers requiring agent involvement.

Financial Stability

Policies are backed by CIBC, one of Canada’s major banks, providing peace of mind that the insurer will be there when needed.

Ideal for Young, Healthy Individuals

Younger applicants in good health can find very competitively priced term life insurance premiums from CIBC.

Guaranteed Issue Option

Older clients or those with health conditions can access guaranteed issue permanent life insurance up to $25,000 without any medical underwriting.

$200,000 Accidental Death Coverage

The maximum $200,000 coverage for accidental death is higher than many competitors.

Easy Conversion to Permanent Insurance

Term policies from CIBC can convert to permanent insurance simply by applying to convert before age 65.

Cons of CIBC Life Insurance

Only 10 or 20 Year Term Life Policies

Some competitors offer more term length options such as 15-year, 25-year, or 30-year terms.

Limited Customization and Riders

CIBC life insurance riders are focused only on terminal illness coverage. Other providers offer more options to customize your policy.

Permanent Insurance Only Through Conversion

You must first purchase term insurance and then convert to permanent later. Other insurers allow buying permanent insurance upfront.

Expensive for Older Age Applicants

For clients over 50, CIBC’s pricing is less competitive than other major insurance companies.

No Participating Whole Life Insurance

CIBC lacks a participating whole life policy that pays dividends to the policyholder.

No Universal Life or No Medical Exam Life Insurance

Applicants must medically qualify for permanent coverage. No universal life or simplified issue permanent policies beyond the small guaranteed issue plan.

Overall, CIBC Life Insurance stands out for its easy online application process and can provide very competitive rates for young, healthy applicants. For those seeking larger coverage amounts or with health conditions, CIBC’s pricing is less competitive compared to some other life insurance companies.

The limited policy types and lack of features like cash value accumulation may be disadvantageous for some buyers. However, the convenience and name recognition of CIBC cannot be understated, making it an attractive choice for many life insurance shoppers.

How Do I Get a Quote for CIBC Life Insurance?

Getting a personalized quote for CIBC Life Insurance is quick and easy. You have three options:

Online Instant Quote Tool

You can get an instant quote by using the online quoting tool available at www.cibc.com. Simply enter your date of birth, gender, smoker status, coverage amount, and policy type.

Contact CIBC Advisor

Call to speak with a CIBC advisor who can provide customized quotes for your specific situation. Have information like your birthdate and budget for insurance premiums handy.

Independent Insurance Agents

Connecting with an independent life insurance broker that has access to CIBC Life Insurance can be useful for comparing quotes across providers. Independent agents have access to pricing from dozens of insurers.

We recommend getting quotes from 2-3 different companies before making your life insurance purchase. Comparing options from leading insurers like Sunlife, RBC Insurance, Manulife, Foresters Financial, Industrial Alliance, BCAA Life Insurance, and Blue Cross Life Insurance often yields significant savings.

How Much Life Insurance Do I Need?

Determining the appropriate life insurance coverage amount is an important part of the planning process. Here are four common methods used to calculate the right amount of life insurance needs:

Income Replacement Method

Add up any income that needs to be replaced such as your salary and calculate how many years it needs to continue (i.e. until retirement, children grown). Multiply the annual income by the number of years to get your capital needed.

Debt Coverage Approach

Total up any major debts like mortgages, loans, lines of credit, and education costs. The life insurance should provide enough to pay off these amounts.

Final Expense Calculation

Estimate future costs of funeral, burial, estate taxes, outstanding medical bills etc. This provides a minimum level of life insurance needed.

Family Living Costs

Consider the annual household expenses to maintain your family’s standard of living such as mortgage, utilities, food, transportation, childcare. Multiply by the number of years needed.

As a general guideline, most people should aim for a death benefit in the range of 5 to 20 times their annual income. However, be sure to consider your specific financial obligations when determining an appropriate policy size.

Factors like being close to retirement, having significant assets, or having no debt can reduce the required insurance amount. Having younger dependents, substantial debt, or limited savings may necessitate higher coverage.

An independent insurance advisor can provide a tailored life insurance needs analysis based on your unique financial situation. This can give you confidence that your family has sufficient protection.

Key Takeaways

After reviewing CIBC’s life insurance offerings, here are the key points to understand:

• CIBC Life Insurance provides straightforward term life and permanent life insurance options backed by one of Canada’s largest financial institutions.
• For younger, healthy applicants, CIBC offers competitively priced 10 and 20 year term life premiums that can be purchased conveniently online.
• Conversion to a lifetime coverage “term to 100” policy is available. However, permanent insurance options are limited compared to some competitors.
• Older age applicants may find more affordable pricing from other top insurers that utilize more lenient underwriting procedures.
• With only terminal illness riders available, CIBC offers fewer opportunities to customize coverage than some insurers.
• The trusted CIBC brand, easy online application process, and access to guaranteed issue coverage make it an attractive choice for many life insurance buyers.
• CIBC Life Insurance best serves those seeking straightforward, no-hassle life insurance. For more complex needs, additional insurers should be considered.
• Compare quotes and policy details from insurers like Sunlife, RBC, and Manulife before deciding if CIBC meets your specific life insurance needs.

Overall, CIBC Life Insurance balances simplicity and convenience with competitive pricing for select demographics. Weigh its strengths and limitations against your own priorities to determine if CIBC is the right life insurance provider for you.

If you need more information about CIBC, please refer to other articles about CIBC at Life Buzz, such as:
– CIBC Routing Number in Canada
– How to Get a CIBC Void Cheque

Frequently Asked Questions (FAQs)