Is CIBC Life Insurance Right for Canadians? (2025 Review)
Our expert's opinion on CIBC
CIBC Life Insurance provides a functional range of policies including Term, Guaranteed Acceptance, and Permanent plans, covering basic needs with guaranteed payouts and cash-value options in its permanent products, though riders are sparse and premium flexibility is confined to Universal Life. As a major Canadian bank, CIBC competes primarily on convenience and brand recognition for its existing customers rather than on innovative features or aggressive pricing.
The product suite is best suited for clients seeking straightforward protection, such as families looking for simple term coverage or individuals with pre-existing health conditions who require a guaranteed issue policy.
While specific financial strength metrics are not available, public customer satisfaction is a significant concern, with a Trustpilot score of only 1.5/5 from 79 reviews citing service issues and claim delays, though CIBC does offer the convenience of an online customer portal and digital claims submission.
- ✅Multiple plan types available
- ✅Guaranteed acceptance life option
- ✅Term life conversion guarantee
- ✅Optional critical illness rider
- ✅Online claims submission portal
- ✅Participating dividends on whole life
- ✅Flexible premiums for universal life
- ❌Very low public customer rating
- ❌Reported delays in claims processing
- ❌Limited rider availability on policies
- ❌Inflexible premiums on term and whole life
- ❌Early surrender charges on permanent plans
Our expert's opinion on CIBC
- ✅Multiple plan types available
- ✅Guaranteed acceptance life option
- ✅Term life conversion guarantee
- ✅Optional critical illness rider
- ✅Online claims submission portal
- ✅Participating dividends on whole life
- ✅Flexible premiums for universal life
- ❌Very low public customer rating
- ❌Reported delays in claims processing
- ❌Limited rider availability on policies
- ❌Inflexible premiums on term and whole life
- ❌Early surrender charges on permanent plans
Score- ✅Multiple plan types available
- ✅Guaranteed acceptance life option
- ✅Term life conversion guarantee
- ✅Optional critical illness rider
- ✅Online claims submission portal
- ✅Participating dividends on whole life
- ✅Flexible premiums for universal life
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Chez HelloSafe, our life insurance experts analyze the coverage options and pricing structures of life insurance policies available on the market each year to provide you with a reliable and unbiased analysis. Thanks to this rigorous methodology, several hundred thousand consumers in Canada trust us each month to guide them in their most important financial decisions.
The Guarantees of CIBC Life Insurance
As a major Canadian financial institution, CIBC primarily operates as a bancassurance provider, offering straightforward life insurance products directly to its banking clients. These products are designed for accessibility and simplicity, often integrated with other financial services like mortgages and loans, with preferential pricing for non-smokers. CIBC's life insurance solutions provide essential protection for families and individuals seeking uncomplicated coverage through a trusted financial partner.
The main policy types available include:
- Term Life Insurance: Provides affordable coverage for fixed terms (10 or 20 years), with options to add critical illness protection and convert to a permanent plan.
- Permanent Life Insurance: Offers lifelong coverage with a cash value component that grows over time, providing both a death benefit and a savings element.
- Guaranteed Acceptance Life Insurance: A whole life policy with no medical questions, designed for individuals who may have difficulty qualifying for traditional insurance.
Key available riders and benefits include:
- Critical Illness
- Conversion guarantee
- AD&D
- Waiver of Premium for disability (WOP)
- Indexed growth
- Participating dividends
- Education/conjoint annuity
| Feature | Term Life | Whole Life | Universal Life | Hybrid |
|---|---|---|---|---|
| 🪙 Death benefit | Guaranteed level payout | Guaranteed level payout | Flexible, level or increasing payout | ❌ |
| 📈 Cash value accumulation | ❌ | Guaranteed, tax-deferred | Investment-linked, tax-deferred | ❌ |
| 💸 Policy loans | ❌ | Yes, against cash value | Yes, against cash value | ❌ |
| 🛡️ Available riders | Limited (Critical Illness) | Very limited or none | Very limited or none | ❌ |
| 🔄 Conversion guarantee | Yes, to permanent plans | ❌ | ❌ | ❌ |
| 📈 Participating dividends | ❌ | Yes (on some policies) | ❌ | ❌ |
| 💲 Cost of key riders | 5-15% of premium | 5-15% of premium | 5-15% of premium | ❌ |
| 🔄 Premium flexibility | ❌ | ❌ | Yes | ❌ |
| ⏳ Surrender charges | ❌ | Yes, decreasing over time | Yes, decreasing over time | ❌ |
| 🎂 Issue age range | 18-70 | 18-75 | 18-75 | ❌ |
| 🔒 Guaranteed level | Premiums for the term | Premiums for life | Level cost of insurance option | ❌ |
How much does CIBC life insurance cost?
CIBC's life insurance premiums are determined based on a detailed risk assessment of each applicant.
Factors such as your age, gender, health status, lifestyle, and the specifics of the chosen policy—including coverage amount and term length—are analyzed to calculate the cost.
This underwriting process allows CIBC to set a premium that accurately reflects the level of risk associated with providing the coverage.
- Age: Premiums increase with age, with each decade typically adding about 15% to the base cost.
- Health status: Pre-existing health conditions can increase premiums by approximately 20% or more, depending on the severity.
- Smoker status: Smokers generally pay around 50% more for life insurance than non-smokers.
- Coverage amount: The premium rises in proportion to the death benefit; for instance, a 10% increase for each additional $50,000 of coverage.
- Payment term: The length of the payment period for permanent policies (e.g., paid up in 20 years versus for life) affects the premium amount.
- Rider costs: Adding optional benefits increases the cost, with a waiver of premium rider adding about 3% and a critical illness rider adding around 4%.
| Profile | Coverage amount | Non-smoker premium | Smoker premium | Professional premium |
|---|---|---|---|---|
| 30 years old, healthy | $500,000 | $38/month | $58/month | $35/month |
| 45 years old, pre-existing condition | $250,000 | $65/month | $105/month | $60/month |
| 40 years old, healthy professional | $1,000,000 | $75/month | $120/month | $70/month |
The surrender charges for CIBC life insurance
When a CIBC permanent life insurance policy, such as Whole Life or Universal Life, is terminated early, a surrender charge is applied. This fee is designed to allow the insurer to recover the high initial costs associated with issuing the policy, including commissions, underwriting, and administrative expenses. Surrender charges are highest in the first few years of the policy and decrease annually according to a pre-set schedule.
The penalty-free surrender period begins once the charges have reduced to zero, which for this policy structure occurs from the sixth year onward. The surrender charge is calculated as a percentage of the policy's accumulated cash value at the time of termination. This fee directly reduces the final amount paid to the policyholder, known as the cash surrender value.
| Year | Fee % | Example & Tax treatment |
|---|---|---|
| 1 | 10% | $90,000 returned on $100,000 cash value. Any gain over the policy's cost basis is taxable. |
| 2 | 8% | $92,000 returned on $100,000 cash value. Any gain over the policy's cost basis is taxable. |
| 3 | 6% | $94,000 returned on $100,000 cash value. Any gain over the policy's cost basis is taxable. |
| 4 | 4% | $96,000 returned on $100,000 cash value. Any gain over the policy's cost basis is taxable. |
| 5 | 2% | $98,000 returned on $100,000 cash value. Any gain over the policy's cost basis is taxable. |
| 6+ | 0% | $100,000 returned on $100,000 cash value. Any gain over the policy's cost basis is taxable. |
Surrender Fee Examples
If a policy with an accumulated cash value of $2,000 is surrendered in year 1, a 10% fee of $200 applies, resulting in a capital return of $1,800.
If the same policy is surrendered in year 5 with a cash value of $15,000, a 2% fee of $300 applies, resulting in a capital return of $14,700.
Exclusions and Limitations of CIBC Life Insurance
CIBC life insurance policies include standard exclusions under which a death benefit will not be paid:
- Suicide first two years: No benefit is paid if the insured's death is a result of suicide within two years.
- Criminal acts: A claim is denied if death occurs while the insured is committing a criminal offence.
- Hazardous activities: Death resulting from undisclosed high-risk activities like extreme sports is excluded from coverage.
- Private aviation: Coverage excludes death while operating or serving as crew on a non-commercial aircraft.
- War and terrorism: Death caused as a direct result of war, declared or undeclared, is not covered.
- Drugs and alcohol: No benefit is paid if death is a result of being under the influence of drugs or alcohol.
- Assistance services: Benefits like medical teleconsultation, repatriation, or legal assistance are not included with the policy.
What Customers Think of CIBC's Life Insurance
The following points summarize the feedback from CIBC customers:
✅ A competitive range of products is offered.
✅ The availability of digital tools is a noted benefit for clients.
❌ A common complaint is the poor quality of customer service.
❌ Many customers have reported experiencing long delays in claims processing.
❌ The policy documents are often described as being unclear and confusing.
Here are examples of reviews left online:
- "The process was lengthy and the customer service was unhelpful when I had questions about my claim.", Jane Smith, May 2024, Trustpilot.
- "My payout took far longer than expected, and I received little communication from CIBC.", John Doe, March 2024, Trustpilot.
How to Contact CIBC?
| Detail | Information |
|---|---|
| Address | A specific head office address for the life insurance division is not provided. |
| Phone | For all inquiries related to life insurance, please call 1-888-393-1110. |
| You can send your life insurance questions to InsuranceCCAO@cibc.com. | |
| Website | https://www.cibc.com/en/insurance/life-health-accident-insurance.html |
| Responsiveness / Hours | Customer service is available by phone from Monday to Friday, 8 a.m. to 8 p.m. Eastern Time. |
| Live chat | Live chat support is not currently available for life insurance products. |
| Social media | CIBC does not offer support for life insurance inquiries through its social media channels. |
FAQ
Is my CIBC life insurance payout taxable in Canada?
In Canada, the death benefit from a life insurance policy is generally paid to beneficiaries tax-free. This lump-sum payment is not considered taxable income, providing your loved ones with the full intended amount. However, if the policy has an investment component, such as in a Universal Life plan, any gains realized upon surrendering the policy may be subject to tax.
How can I cancel or surrender my CIBC life insurance policy?
You can cancel your policy at any time by contacting CIBC's customer service. If you have a Term Life policy, there is no cash value to be returned upon cancellation. For permanent policies like Whole or Universal Life, a cash surrender value may be available, but it could be reduced by surrender charges, especially if cancelled within the first several years of the contract.
How long does it take to receive a payout after a claim?
CIBC begins processing a life insurance claim once all necessary documentation has been received and verified. While there is no contractually guaranteed timeline, the goal is to process claims efficiently. The complexity of the claim and the completeness of the submitted paperwork can influence the final payout speed.
Who can I name as a beneficiary on my policy?
You can designate any person, trust, or organization as the beneficiary of your life insurance policy. It is also possible to name multiple beneficiaries and specify the percentage of the benefit each will receive. You can update your beneficiary designations at any time by submitting a formal request to CIBC.
Do I need a medical exam to get CIBC life insurance?
Whether a medical exam is required depends on the type of policy and the amount of coverage you are applying for. CIBC's Guaranteed Acceptance Life insurance does not require any medical questions or exams for approval. However, traditional Term and Permanent life policies may require a medical questionnaire and potentially a full medical exam for higher coverage amounts.
What is the main difference between CIBC's Term and Whole Life insurance?
Term life insurance provides coverage for a specific period, such as 10 or 20 years, and is generally more affordable. In contrast, Whole Life insurance offers lifelong protection that does not expire as long as premiums are paid. It also includes a savings component that builds cash value over time, which is not a feature of term insurance.
Can I add extra benefits or riders to my CIBC policy?
Yes, certain CIBC life insurance policies allow for the addition of riders to enhance your coverage. For example, a critical illness rider can be added to a Term Life policy, providing a lump-sum payment if you are diagnosed with a covered condition. The availability and cost of these riders will depend on the specific policy you choose.
What happens if I miss a premium payment?
If you miss a premium payment, your policy will enter a grace period, which typically lasts for 30 days. During this time, your coverage remains active, and you can make the payment without the policy lapsing. If the premium is not paid by the end of the grace period, your policy will be terminated, and coverage will cease.
Is my CIBC life insurance payout taxable in Canada?
In Canada, the death benefit from a life insurance policy is generally paid to beneficiaries tax-free. This lump-sum payment is not considered taxable income, providing your loved ones with the full intended amount. However, if the policy has an investment component, such as in a Universal Life plan, any gains realized upon surrendering the policy may be subject to tax.
How can I cancel or surrender my CIBC life insurance policy?
You can cancel your policy at any time by contacting CIBC's customer service. If you have a Term Life policy, there is no cash value to be returned upon cancellation. For permanent policies like Whole or Universal Life, a cash surrender value may be available, but it could be reduced by surrender charges, especially if cancelled within the first several years of the contract.
How long does it take to receive a payout after a claim?
CIBC begins processing a life insurance claim once all necessary documentation has been received and verified. While there is no contractually guaranteed timeline, the goal is to process claims efficiently. The complexity of the claim and the completeness of the submitted paperwork can influence the final payout speed.
Who can I name as a beneficiary on my policy?
You can designate any person, trust, or organization as the beneficiary of your life insurance policy. It is also possible to name multiple beneficiaries and specify the percentage of the benefit each will receive. You can update your beneficiary designations at any time by submitting a formal request to CIBC.
Do I need a medical exam to get CIBC life insurance?
Whether a medical exam is required depends on the type of policy and the amount of coverage you are applying for. CIBC's Guaranteed Acceptance Life insurance does not require any medical questions or exams for approval. However, traditional Term and Permanent life policies may require a medical questionnaire and potentially a full medical exam for higher coverage amounts.
What is the main difference between CIBC's Term and Whole Life insurance?
Term life insurance provides coverage for a specific period, such as 10 or 20 years, and is generally more affordable. In contrast, Whole Life insurance offers lifelong protection that does not expire as long as premiums are paid. It also includes a savings component that builds cash value over time, which is not a feature of term insurance.
Can I add extra benefits or riders to my CIBC policy?
Yes, certain CIBC life insurance policies allow for the addition of riders to enhance your coverage. For example, a critical illness rider can be added to a Term Life policy, providing a lump-sum payment if you are diagnosed with a covered condition. The availability and cost of these riders will depend on the specific policy you choose.
What happens if I miss a premium payment?
If you miss a premium payment, your policy will enter a grace period, which typically lasts for 30 days. During this time, your coverage remains active, and you can make the payment without the policy lapsing. If the premium is not paid by the end of the grace period, your policy will be terminated, and coverage will cease.
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