What does Disability Insurance for CIBC Personal Lines of Credit cost?
Your PLC disability insurance premium is calculated and accumulated daily. If you have a balance on any day, there will be a premium payable for that day. Your premium is based on your CIBC PLC or ELC insured outstanding balance and the applicable premium rate from the rate table below. Your premium rate is based on your age on the first day of the month in which your premium is calculated.
Approximate† PLC Disability Insurance monthly premium rate per $1,000 of the end-of-day insured outstanding balance of the CIBC PLC or ELC owed (applicable taxes will be added to your premium):
Your monthly PLC Disability Insurance premium = the PLC insured outstanding balance × the applicable premium rate.
Your CIBC PLC or ELC insured outstanding balance is the lowest of:
- end-of-day balance of the PLC or ELC;
- the credit limit;
- the disability insurance coverage limit Canada Life communicated to you by letter (if applicable); or
The accumulated daily insurance premiums, plus any applicable taxes, are charged to the PLC or ELC on the billing date.
An example of premium calculation for single coverage:
You are 42 years old and your CIBC PLC or ELC balance is $50,000. Your Disability Insurance premium for one day is calculated as follows: ($1.19 (applicable premium rate based on age 42) × 12 months ÷ 365 days) × ($50,000 insured balance ÷ $1,000) = $1.956. If your balance remained at $50,000 for the entire 30-day billing period, the monthly premium would be the $1.956 daily rate added for the 30 days, which is $58.68.
Savings for life and disability insurance coverage:
If you have life insurance and disability insurance coverage on your PLC or ELC, the disability insurance premiums are discounted by 10%, reducing to $58.68 × (1 - 10 ÷ 100) = $52.81.
† The monthly premium will vary depending on the number of days in the month. The above rate table is based on a year with 365 days spread over 12 equal months.
†† If two people are insured on the PLC and both are approved for a different insurance coverage amount, the disability insurance premium rate is based on the age of the older person. If two individuals are insured through the PLC and each person has been approved for a different insurance coverage amount, the disability insurance premium rate is based on the age of the older person for the coverage amount that is common to both people. The disability insurance premium for the additional coverage amount is based on the age of the person insured for such additional coverage.