CIBC: Mortgage Life or Just Plain Life?
CIBC Insurance offers a range of insurance options including creditor insurance, accident insurance, travel insurance, and term insurance. As banks dip their fingers deeper into the honeypot of term life insurance, they're able to offer more comprehensive financial planning services, allowing you to bank, borrow, and insure all in one place. CIBC Insurance has made it their mission to make their institution a one-stop shop for all your financial products.
CIBC life insurance is offered in two packages: through a standard 10 or 20 year term life insurance plan, and through mortgage life insurance which ends at age 70, provided to those holding CIBC mortgages. The difference in coverage and stipulation is rather surprising, with the term insurance policy offering up to $100,000 in coverage under normal circumstances, and the mortgage life insurance offering up to $750,000 in mortgage coverage with No Medical.
As you can see, there's considerable advantage to considering a mortgage life insurance policy if you have or are considering taking out a mortgage with CIBC, especially since mortgage debt is one of most prevalent and debilitating forms of debt in Canada. In the event that something happens to you, your mortgage can be repaid and covered so your immediate family has no worry about losing their home.
There are some things to consider before you choose the policy with the higher number, of course. While obtaining insurance specifically for your home might seem like a great investment on your home, you may not be considering not only all your options, but also your financial obligations. While financial security for your home may be desirable, you may have other financial obligations that need to be settled, such as education costs or business loans. Every personls financial situation is different, and the coverage provided on a home may not provide the complete financial security you're looking for when you buy insurance.
The alternative option is to invest in two insurance policies, one mortgage and one standard life insurance. While this would lend itself to being the best option in theory, it can be financially taxing as well as limited in the scope of protection it provides. It also negates the purpose of owning two policies when one with higher coverage would provide the same benefit.
In no way do these drawbacks invalidate CIBC's mortgage insurance plan as a viable option. Indeed, it's a strong permanent life insurance foundation. However it's important to consider alternative options, and brokers representing major banks tend to throw in life insurance as a rider policy on application. While CIBC's mortgage insurance may draw you in immediately, keep in mind it's a completely optional policy, and considering your options and your financial needs before making a decision. While many mortgages do require you obtain life insurance as part of collateral, you aren't obligated to buy their policy if it isn't right for you.
For those already banking with CIBC in possession of a mortgage, or considering a mortgage, the CIBC mortgage insurance policy seems like an effective way to obtain coverage to protect a major loan purchase. Carefully consider your options and evaluate how many financial factors are affecting your life, and decide if a mortgage is worth the plan.
CIBC life insurance is offered in two packages: through a standard 10 or 20 year term life insurance plan, and through mortgage life insurance which ends at age 70, provided to those holding CIBC mortgages. The difference in coverage and stipulation is rather surprising, with the term insurance policy offering up to $100,000 in coverage under normal circumstances, and the mortgage life insurance offering up to $750,000 in mortgage coverage with No Medical.
As you can see, there's considerable advantage to considering a mortgage life insurance policy if you have or are considering taking out a mortgage with CIBC, especially since mortgage debt is one of most prevalent and debilitating forms of debt in Canada. In the event that something happens to you, your mortgage can be repaid and covered so your immediate family has no worry about losing their home.
There are some things to consider before you choose the policy with the higher number, of course. While obtaining insurance specifically for your home might seem like a great investment on your home, you may not be considering not only all your options, but also your financial obligations. While financial security for your home may be desirable, you may have other financial obligations that need to be settled, such as education costs or business loans. Every personls financial situation is different, and the coverage provided on a home may not provide the complete financial security you're looking for when you buy insurance.
The alternative option is to invest in two insurance policies, one mortgage and one standard life insurance. While this would lend itself to being the best option in theory, it can be financially taxing as well as limited in the scope of protection it provides. It also negates the purpose of owning two policies when one with higher coverage would provide the same benefit.
In no way do these drawbacks invalidate CIBC's mortgage insurance plan as a viable option. Indeed, it's a strong permanent life insurance foundation. However it's important to consider alternative options, and brokers representing major banks tend to throw in life insurance as a rider policy on application. While CIBC's mortgage insurance may draw you in immediately, keep in mind it's a completely optional policy, and considering your options and your financial needs before making a decision. While many mortgages do require you obtain life insurance as part of collateral, you aren't obligated to buy their policy if it isn't right for you.
For those already banking with CIBC in possession of a mortgage, or considering a mortgage, the CIBC mortgage insurance policy seems like an effective way to obtain coverage to protect a major loan purchase. Carefully consider your options and evaluate how many financial factors are affecting your life, and decide if a mortgage is worth the plan.
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