Cumis Mortgage Insurance Review 2024
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Discover the methodologySecuring your home and financial future against unexpected life events is crucial, and CUMIS Mortgage Insurance offers a tailored solution. It covers critical situations like death, critical illness, disability, and job loss, ensuring your mortgage is taken care of when you need it most.
This peace of mind allows you to focus on what's truly important—your family and their well-being. But does Cumis mortgage insurance meet all your needs? Is it the right choice for you? Let's find out.
In this review, let's dive into everything you need to know about Cumis mortgage insurance: Coverage options, pros, limitations, costs, and more. Also, use our free tool to compare the best mortgage insurance plans in Canada and get personalized quotes now.
CUMIS Mortgage Insurance: 5 Key Takeaways
- Offers options for lower down payments and potentially lower premiums.
- Provides coverage for death, critical illness, disability, and loss of employment.
- Major limitations include total coverage restrictions and benefit duration limits.
- Cost varies based on factors like age, health, loan details, and chosen coverage.
- The insurance is entirely voluntary, allowing cancellation at any time.
Our 2024 review of CUMIS mortgage insurance
CUMIS Mortgage Insurance stands out for its comprehensive coverage options, including protection against death, critical illness, disability, and loss of employment, making it a solid choice for homeowners looking for a safety net.
Its flexible plans, potentially lower premiums, and the option for lower down payments cater to a wide range of needs, particularly appealing to those with mortgages through credit unions. However, it's important to weigh the additional monthly cost and potential for decreased equity growth against the peace of mind and financial security it offers.
While not everyone may find the need for such specific mortgage protection, for those prioritizing the assurance that their mortgage payments are covered in unforeseen circumstances, CUMIS Mortgage Insurance is a worthy consideration.
If you think Cumis is the right choice for you, we recommend that you compare other options before zeroing in on a plan. You can simply use our free tool below to compare the best mortgage insurance plans in Canada and get personalized quotes right here.
The best mortgage life insurance
Pros of Cumis mortgage insurance
- Can qualify for a mortgage with a lower down payment
- Potentially lower premiums than individual life insurance
- Convenient enrollment and administration
- Reputable provider
Cons of Cumis mortgage insurance
- Additional monthly cost
- May not be necessary for everyone
- Not guaranteed acceptance
- Decreases equity growth
What does CUMIS mortgage insurance cover?
This insurance helps protect your family's financial security by paying off your mortgage if you experience certain life events, such as:
- Death: If you die prematurely, the insurance will pay off your remaining mortgage balance, ensuring your family doesn't face financial hardship due to your loss.
- Critical illness: If you're diagnosed with a critical illness, the insurance can provide a lump sum payment or pay your mortgage installments for a specific period.
- Disability: If you become disabled and unable to work, the insurance can cover your mortgage payments until you recover or reach retirement age.
- Loss of Employment Insurance: It covers your Insured Mortgage payment if you experience an involuntary loss of Employment.
Check out this information brochure to get details about each insurance and their coverage benefits:
Is mortgage insurance worth it in 2024?
Mortgage insurance offers the peace of mind that comes from knowing your home will be fully paid off, relieving your family of a major financial worry in challenging times. It ensures that your most significant financial obligation doesn't weigh down your loved ones should you no longer be there to support them. Read our full guide on why mortgage insurance is worth it.
What are the limitations of CUMIS mortgage insurance?
There are some restrictions on the total insurance amount available to you and the duration of your insurance coverage.
For disability and loss of employment insurance, additional limits govern the duration of benefit payments following a claim. Also, the insurance coverage on your Mortgage may be lower than your Approved Mortgage Amount.
Some CUMIS mortgage insurance-related definitions that you should know of:
- Maximum Benefit Period Per Occurrence: This signifies the maximum duration, in months, for which Cumis will provide disability insurance and loss of employment insurance benefits for a single claim, as indicated on your Insurance Enrolment.
- Maximum Cumulative Benefit Payable: It sets the upper limit on the total amount of disability insurance and loss of employment insurance benefits payable for any Mortgage, as specified on your Insurance Enrolment. If your life or critical illness insurance coverage is less than this maximum, your disability insurance or loss of employment insurance benefits will be capped at the corresponding life or critical illness insurance coverage amount.
- Maximum Insurance Available: It represents the highest limit on the life and critical illness insurance coverage issued for any Mortgage, as detailed on your Insurance Enrolment.
- Maximum Monthly Benefit Payable: This establishes the highest monthly amount for disability insurance and loss of employment insurance benefits payable for any Mortgage, as outlined on your Insurance Enrolment.
- Maximum Term of Insurance: It denotes the maximum duration for which insurance will be provided on any Mortgage, as indicated on your Insurance Enrolment.
Once your insurance coverage has lapsed, no further benefits will be paid.
If you want to see how Cumis fares against the best mortgage insurance plans in Canada, you can do it right here. Use our comparator below to explore mortgage insurance plans, compare quotes, and find a plan that suits you best.
The best mortgage life insurance
Who can apply for CUMIS mortgage insurance?
You are eligible to sign up for life insurance, critical illness coverage, disability insurance, and loss of employment insurance on your mortgage if, as of the Requested Effective Date indicated on your Insurance Enrolment:
- You are a Canadian resident, residing in Canada for at least six months of the year.
- You hold a legal obligation to repay your mortgage to the Group Policyholder, whether as a borrower, co-borrower, co-signer, guarantor, or endorser.
- You have a legal obligation to repay your mortgage to the Group Policyholder as a business owner, key person, or any individual associated with the business who is obligated to the debt.
- Your age falls within the Minimum/Maximum Eligibility Age range for each type of insurance you are enrolling in, as specified on your Insurance Enrolment.
- You have not filed a claim for a living benefit (accelerated death benefit) under any creditor’s group insurance policy or certificate of insurance issued by us.
How much does CUMIS mortgage insurance cost?
The cost of mortgage insurance from CUMIS varies depending on several factors, including:
Applicant and policy details:
- Age: Younger applicants generally pay lower premiums than older applicants.
- Health: Smokers or individuals with pre-existing health conditions may pay higher premiums.
- Chosen coverage: Premiums will be higher for larger coverage amounts and broader coverage including critical illness and disability.
- Term of the mortgage: Longer mortgage terms typically correspond to higher premiums.
Loan and property-related factors:
- Loan amount: Premiums are calculated based on the insured amount, which is typically a percentage of the remaining loan balance.
- Mortgage type: Some types of mortgages, like high-ratio mortgages, might require higher premiums.
- Location: Premiums may vary slightly depending on your province or territory in Canada.
Good to know
Mortgage insurance rates might vary from one provider to another as well. For instance, Scotia Bank mortgage insurance plans might be different from Cumis insurance policies for the same coverage. It is therefore recommended to compare plans using our free tool.
Here's a sample quote for your reference:
- Applicant: 30-year-old healthy non-smoker
- Mortgage: $500,000 with a 25-year term
- Coverage: $250,000 life insurance only
In this scenario, the monthly premium could be around $50-$75. Again, this is just an estimate, and the actual cost could be higher or lower based on the factors mentioned above.
| Feature | Sample Quote |
|---|---|
| Applicant Age | 30 |
| Smoker Status | Non-Smoker |
| Mortgage Amount | $500,000 |
| Mortgage Term | 25 years |
| Coverage Type | Life Insurance Only |
| Coverage Amount | $250,000 |
| Estimated Monthly Premium | $50-$75 |
| Factors Affecting Premium | Age, Health, Smoker Status, Coverage Amount, Mortgage Term, Loan Amount, Mortgage Type, Location |
If you want to get personalized mortgage insurance quotes from leading Canadian companies, including CUMIS, you can use our comparator. Just fill in some basic details and get quotes in minutes.
The best mortgage life insurance
But how is mortgage insurance different from life insurance?
Mortgage life insurance specifically pays off your mortgage if you pass away, with the lender as the beneficiary, not your family. Traditional life insurance gives a payout to your chosen beneficiaries, who can use the funds for any purpose. The focus of mortgage life insurance is solely on settling your mortgage debt and ensuring your home's security for your loved ones. If you want to see which is the right choice for you, read our guide on Mortgage insurance vs life insurance: What's right for me?
What is CUMIS mortgage insurance’s reduced insurance benefit?
CUMIS Mortgage Insurance's reduced insurance benefit is a feature that adjusts your coverage based on the actual amount you choose to insure, which might be less than your total mortgage. Here’s a simpler breakdown:
Imagine you have a $500,000 mortgage but decide to only insure half of it, which is $250,000, for life and critical illness insurance. For disability and job loss insurance, you're covering $1,200 of your monthly mortgage payment, which is 75% of the total payment of $1,600.
If something happens and you need to claim:
- For life or critical illness, if the mortgage balance at that time is $300,000, you'll receive 50% of that amount, which is $150,000, because you only insured half of your mortgage.
- For disability or job loss, you'll get 75% of your monthly mortgage payment, so you'll receive $1,200 to help cover your $1,600 payment.
This means the insurance pays out in proportion to the amount of coverage you chose initially, making sure you get help according to what you've been paying for.
How to claim CUMIS mortgage insurance?
The claims process varies for each type of claim. Here are some ways to contact CUMIS:
- Address: 151 North Service Road, P.O. Box 5065, Burlington, ON L7R 4C2
- Toll-free telephone: 1.800.263.9120
- Toll-free confidential fax: 1.800.897.7065
- Confidential email: [email protected]
To know more about how you can make a claim for different insurance types, check out this information brochure:
How to cancel your Cumis mortgage insurance?
Your participation in insurance coverage with CUMIS is entirely voluntary, and you have the option to cancel it at any time.
- If you want to cancel your insurance, you can reach out to the Group Policyholder Contact indicated on your Insurance Enrolment.
- If you cancel within 30 days, you will receive a full refund of any premiums paid. Also, the insurance coverage will be considered never to have been in force. But you mustn't have made any claims to get a full refund.
- After the initial 30-day review period, you can still cancel the insurance at any time. However, no premium refund will be provided unless mandated by law.
