Why choose Creditor Insurance for your CIBC mortgage?
If you're buying a home, it's important to think about how you'll protect yourself and your investment from unforeseen circumstances.
Oct. 17, 2022
4-minute read
Buying a home is likely the biggest and most important financial commitment you'll make in your lifetime. It can be daunting, but it's also an exciting time full of opportunities and big decisions. Thinking about how to protect your investment now will help make sure you and your family can enjoy your home for years to come.
As you move through the steps to find the home of your dreams — from getting pre-approved for a mortgage and selecting a real estate agent, to going for viewings and making offers — you'll need to consider the risks that come with the financial commitment you're about to make. Ask yourself: Do I have a plan in place to manage these risks?
We all like to think we'll avoid major disruptions in our lives. But hoping things turn out well won't prepare you for the day when something could go wrong. The reality is that unexpected events can throw a wrench into even the best-laid plans. An accident, getting laid off from work or a significant health issue can occur at any time.
Any of these events could affect your ability to keep up with your mortgage payments, and in turn, your ability to continue living in your home. Whether buying your first home or refinancing your existing property, it makes sense to look at creditor insurance and understand how it can help maintain your financial stability, no matter what life may throw at you.
Creditor insurance can help cover your mortgage in case you can't
So, what exactly is creditor insurance?
It's a form of insurance that can help protect the mortgage on your home in the event of unforeseen circumstances, such as the inability to work due to a disability, involuntary job loss, critical illness or in the event of your death.
Put simply, if you experience any of the conditions covered in your policy, creditor insurance can help pay down or pay off the shortfall.
The exact benefit will depend on the coverage you purchase. It can either pay down or pay off your mortgage in the case of death or critical illness, or help with mortgage payments in the event of disability or job loss. That way, you and your family can focus on what’s important, instead of your ability to maintain your mortgage.
How does it work? Which coverage is right for you?
It’s quick and easy to apply for creditor insurance. It can be done at the same time as your mortgage application. The entire process is set up to make it easy for you, so you can get the protection you need.
When you sign up, you'll have the option of choosing various types of coverages, such as life, critical illness, disability or disability plus job loss. You can select multiple coverages, but the right coverage for you depends on your personal situation. This is something you should discuss with your mortgage advisor or financial planner.
Your coverage begins immediately, if you‘re able to answer no to all the health questions on the application and your CIBC mortgage is approved. Your premiums are locked in and don't change during the life of the mortgage. Premiums are collected together with your mortgage payments.
Have a conversation with your advisor
As you take the first steps toward purchasing or refinancing your home, it's a good idea to reach out to a trusted advisor to discuss creditor insurance for your mortgage. Speak to your CIBC representative to find out more, and see how creditor insurance can help protect you, your family and your new home.
Need some financial advice?
Book a chat with one of our advisors. They can help set you up for success, today and into the future.
