I'm applying with a co-borrower. What if one of us isn't approved?

The approved applicant can still be insured for single coverage.

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Can I be pre-approved for Mortgage Life insurance?

You can be pre-approved for Mortgage Life Insurance quickly and easily by completing a Mortgage Life Insurance application with your branch.

Canada Life will contact you directly for any necessary medical information and send out written notification as to the status (approved or declined) of the application. In most cases, a decision will be provided within 24 hours.

You can take advantage of the pre-approval if you take out a mortgage within three months of the date of the approval letter. Otherwise, you must complete a new application.

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What if I miss a payment?

Your premium payments are made together with your mortgage payments. If your mortgage payments are not paid for 92 days, the insurance will be cancelled. No benefits are payable if the insurance has been cancelled.

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Can I reinstate my coverage?

No. If you choose to cancel your Mortgage Life Insurance coverage or your coverage is cancelled due to non-payment of your premium, there is no reinstatement period. If you change your mind and wish to have mortgage life insurance, you will need to complete a new application.

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How much am I covered for?

In the event of your death, the outstanding balance of your total insured mortgages with CIBC will be paid off up to a maximum of $750,000. The outstanding balance includes the amount of principal, interest, any relevant bonus interest and the costs of discharging the mortgage, less outstanding insurance premium and applicable taxes that may have accrued prior to the date of death.

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How is a claim made?

Your CIBC Personal Branch can help your family through this difficult time. Life insurance claims must be submitted to Canada Life within 1 year of the date of death. Claim forms are available at any CIBC branch. The claim form is to be completed by the person handling the estate and the attending physician. A physician's statement may be required. Proof of death will be required.

When a claim is accepted, the claimant will be informed of the benefit amount in writing. If the claim is denied or reduced, a written explanation will be provided to the claimant.

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What if I want to cancel?

Insurance coverage may be cancelled at any time during mortgage repayment by completing a cancellation form available from any CIBC branch or by notifying CIBC Mortgages Inc./Services Hypothécaires CIBC Inc. in writing. The cancellation form should be mailed or faxed to:

CIBC Mortgages Inc./Services Hypothécaires CIBC Inc. Attn: Life Insurance Dept. P.O. Box 115, Commerce Court Postal Station Toronto, Ont. M5L 1E5

Fax number: 1- 888-310-7560

In the case of joint coverage, the mortgage payments will be reduced to the single life equivalent if one of you wishes to stay insured.

Important note: ALL individuals on the mortgage, even those who don't have coverage, including guarantors, must sign the cancellation request.

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What happens when I renew my mortgage?

Your coverage will continue as usual, so there's no need to reapply. Your premium payments will also continue to be based on your age as of the date of your original insurance application.

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What happens if I refinance or transfer my mortgage?

A refinanced or transferred mortgage (a mortgage that is renegotiated for an increased amount, or is transferred from one property to another) is treated as a new mortgage for insurance purposes and needs a new insurance application completed.

If for some reason you are not approved for insurance to cover the additional amount (perhaps your health condition has changed), Prior Coverage Recognition may apply. This feature maintains insurance on the previous insured amount at the time you had refinanced, up to the percentage it represents of the new mortgage amount.

For example: You have an insured CIBC mortgage with an outstanding balance of $50,000 when you decided to refinance. You apply for an increase to $100,000 and are declined insurance for the additional $50,000.

But with Prior Coverage Recognition, you are still insured for the prior insured mortgage's original outstanding balance of $50,000.

As $50,000 represents 50% of your new mortgage amount, the death benefit would be 50% of your new balance on the newly financed mortgage amount up to a maximum of $50,000. If the outstanding mortgage balance is $60,000 when you die, the benefit paid will be 50% of that amount - $30,000 - subject to the limitations and exclusions.

Caution: You must reapply for the additional life insurance coverage within 120 days of discharging the previous mortgage to be eligible for Prior Coverage Recognition.

With a joint application, one applicant may not qualify for an increased amount of coverage at the time of refinancing/transfer, while the other applicant is eligible.

In this case, the 'qualifying' applicant could be insured for the total increased amount of coverage. The first mortgagor would continue to qualify for Prior Coverage Recognition based on the outstanding amount of the previous insurance coverage.

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