Is CIBC Disability Insurance the best? Review 2024
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Discover the methodologyDisability insurance usually comes in the form of short-term disability (STD) and long-term disability (LTD) policies. The former usually has a maximum disability benefit period of up to two years, while the latter keeps benefits payable for the rest of your life.
Sometimes, however, disability insurance is provided as an optional add-on, as is the case with CIBC disability insurance. Do you want to find out how it works? Read on!
This article dives into everything about CIBC disability insurance, from the coverage, and why you should consider it if you have a personal loan or mortgage with CIBC, to its various limitations and exclusions. You can then use our free tool to compare CIBC with the best disability insurance plans in Canada and get free quotes right here.
CIBC Disability Insurance: 5 Key Takeaways
- CIBC Disability Insurance options are add-ons
- The benefits are applied directly to your CIBC loans in the event of a successful claim
- The insurance has a maximum monthly benefit of $6,000
- With a credit limit of less than $150,000, you do not have to complete a health questionnaire
- CIBC Disability Insurance is underwritten by Canada Life
Our review of CIBC Disability Insurance: Great option to cover CIBC loans
CIBC disability insurance is not your standard short-term disability (STD) or long-term disability (LTD) policy because they do not offer standalone disability insurance to clients. Instead, CIBC disability insurance is tied to their financial products such as CIBC Personal Lines of Credit (PLC), CIBC Mortgages, CIBC Credit Cards, and CIBC Personal Loans.
It can, therefore, only be purchased as an optional extra when you apply for another CIBC product. Despite this, CIBC disability insurance is highly desirable and offers CIBC clients an efficient and affordable way to protect their finances without having to look for insurance options from other providers.
Furthermore, your premiums are calculated daily based on your outstanding loans, meaning that you will never be overinsured which will save you money in the long run.
If you want to compare CIBC’s disability insurance to other insurance providers and policies in Canada, you can use our free comparison tool below.
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What are the advantages and disadvantages of CIBC disability insurance?
Just like every insurance policy, CIBC disability insurance comes with its own set of advantages and disadvantages. Unlike most, however, CIBC disability insurance is only advantageous to CIBC customers since it is tied to their other financial products.
The following pros and cons might help you decide whether you should opt for CIBC’s disability insurance or look for additional cover elsewhere.
Pros of CIBC Disability Insurance
- Premiums are calculated daily on the money you owe so you never end up paying more than necessary
- Premiums are very affordable
- Monthly disability benefit is applied directly to your CIBC lines of credit
- With a loan of <$150,000 you do not have to complete a medical questionnaire
- Canada Life underwrites the CIBC disability insurance
- CIBC offers a different disability insurance for each of their financial products
Cons of CIBC Disability Insurance
- Benefits can only be applied to CIBC loans so you do not receive any cash income
- The benefits are payable for a maximum of 24 months
- It is not a standalone product so is only available to new or current CIBC customers
Good to know
There is also Canada Life disability insurance that is provided by Canada Life itself and is not restricted to CIBC customers alone. You can find our full guide on Canada Life disability insurance policy right here.
How much does CIBC Disability Insurance cost?
The cost of CIBC disability insurance varies depending on the type of disability insurance you apply for, in addition to things like age, the value of your loan, and health status. However, premium rates and calculations are transparent with a clear premium structure advertised on their website.
For example, below you can see the monthly cost where the rates are calculated per $100 of the Fixed Monthly Benefit Amount.
| Your Age | CIBC Mortgage Disability Insurance rate per $100 |
|---|---|
| <30 | $1.35 |
| 30-35 | $1.70 |
| 36-40 | $2.15 |
| 41-45 | $2.80 |
| 46-50 | $3.45 |
| 51-55 | $4.45 |
| 56-60 | $5.50 |
| 61-64 | $6.00 |
Calculating the cost or monthly premium may still be a little difficult, and in that case, the example below may help!
Example Cost for CIBC Disability Insurance on Mortgages
If you are 38 years old when you apply with a Fixed Monthly Benefit of $2,000 should you be unable to work, then you can calculate your CIBC Mortgage Disability Insurance premiums as follows:
($2,000/100)*2.15=43
Your final premium would be $43 per month.
Disability insurance quotes differ from provider to provider as well, so it's essential to compare the plans. Make sure to use our comparator tool to explore the best plans from TD disability insurance, Blue Cross disability insurance, and more.
Is disability insurance tax deductible in Canada?
Disability insurance premiums may be tax deductible in Canada depending on the type of insurance you have and the entity that pays for the premiums. Private disability insurance is not tax-deductible, whereas corporate disability insurance is tax-deductible. You can read our full guide on the disability insurance tax deductible subject.
What are the different types of CIBC Disability Insurance?
As mentioned throughout this CIBC disability insurance review, CIBC offers disability policies tied to its various financial products. This means that if you apply for a CIBC mortgage then your disability insurance will be different than for example the CIBC disability insurance on line of credit.
The table below names the different types of CIBC disability insurance available and highlights some of their key benefits.
| Policy Name | Disability Insurance for CIBC Mortgages | Disability Insurance for CIBC Personal Lines of Credit | CIBC Payment Protector™ Insurance for Credit Cards | Disability Insurance for CIBC Personal Loans |
|---|---|---|---|---|
| Applicable financial product | CIBC Mortgages | CIBC Personal Lines of Credit (PLC) | CIBC Credit Cards | CIBC Personal Loans |
| Coverage for | Disability | Disability | Involuntary Unemployment Loss of Self-employment Disability | Disability |
| Monthly benefit | Up to $3,000/month | Up to $6,000/month | 20% of the balance on your last credit card statement | Is equal to the loan’s regular payments (principal + interest), and applicable insurance premiums |
| Waiting period | 60 days | 60 days | 30 days | 30 days |
| Maximum benefit per incident of disability | 24 months $150,000 | 24 months $200,000 | $50,000 | $200,000 |
What are the limitations and exclusions of CIBC’s disability insurance?
Just like all insurance policies, CIBC’s disability insurance plans come with a handful of limitations and exclusions that may stop the Fixed Monthly Benefit from being paid in the event of a claim. While these aren’t specific to CIBC, it is important to know what the exclusions may be before signing up for any policy so that you don’t get any unwelcome surprises down the line.
Highlighted below are a few of CIBC’s disability insurance terms and conditions that may stop your disability insurance benefit from being paid.
- You become disabled within 12 months of your insurance start date, or from a pre-existing condition that you received treatment for or that required a physician’s consultation in the 12 months before your insurance application
- Your disability doesn’t completely render you unable to perform your normal duties at work
- You return to your place of work and earn a salary during or after the waiting period expires
- You don’t provide enough evidence to CIBC and Canada Life regarding your disability and inability to work
- You can continue to work despite your disability
- You lie or give inaccurate information in your application form
- Your disability is as a result of self-inflicted injury or harm
- You do not complete a requested medical examination by Canada Life
- Your disability is directly or indirectly related to substance abuse, including alcohol
Expert advice
For a complete list of all the terms and conditions associated with CIBC’s various disability insurance policies refer to the applicable Certificate of Creditor Insurance on CIBC’s website.
How can I get a CIBC disability insurance quote?
You can get CIBC disability insurance quotes directly on CIBC’s website as their premium structures are transparent and made available to the public. However, it is possible that your final premium won’t be the same as the pricing schedule indicates due to your circumstances. To get an official offer from CIBC and its underwriter Canada Life, you will have to complete and submit an application form.
You can also compare CIBC’s disability insurance to other prominent insurance providers in Canada using our comparison tool below.
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Who is eligible for CIBC disability insurance?
To be eligible for CIBC’s disability insurance you have to be a Canadian resident and aged between 18 and 64 (69 for CIBC Payment Protector Insurance for Credit Cards). You are also required to fulfill the list of eligibility criteria below that differs slightly between the different types of CIBC disability insurance.
- Be approved for PLC/ELC, a mortgage, a personal loan, or a CIBC credit card
- Not currently be receiving disability benefits
- Be listed as a borrower, co-borrower, or guarantor on a PLC, ELC, or mortgage
- Be employed with at least 25 working hours per week
How to contact CIBC Disability Insurance?
To contact CIBC to hear more about their disability insurance, apply for coverage, or get a full list of the terms and conditions relevant to your CIBC line of credit, you can either visit any one of their banking canters or dial the CIBC Creditor Insurance helpline on 1-800-465-6020.
