Manulife CoverMe
CoverMe Life Insurance Frequently Asked Questions

Have a question? We have the answer. Please review our Frequently Asked Questions below, or contact us. Our customer service representatives will be happy to help you.

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What is Term Life Insurance?

Quite simply, when you buy term life insurance, you are entering into an agreement with your insurance company.

In exchange for you making regular payments (called premiums), the insurance company will pay a benefit to the person you choose (called a beneficiary) if you should die while your policy is in effect. The death benefit payment is made tax-free under Canadian law, to a named beneficiary resident in Canada. In other words, if your term life insurance coverage amount were $475,000, your named beneficiary would receive that total amount. You can still name a beneficiary not resident in Canada, but the benefit payment may be subject to the tax laws of that jurisdiction.

Most people buy life insurance to help ensure that their unexpected death will not negatively impact the financial security of those they love. By buying life insurance, they make sure that money is available for funeral expenses and mortgage and loan payments, and that their loved ones can pay for living expenses (such as groceries, utilities and their children's education) even though they are not there to help anymore.

Term life insurance simply means that the contract is for a defined period of time. Premiums remain the same for that defined period of time.

You should not cancel or replace an existing insurance policy with a new one without consulting your financial advisor. Or contact us, and we can help you determine your unique needs.

What is a death benefit?

The death benefit is the main feature of any life insurance policy. The insurance company will pay the death benefit to your named beneficiary if you die while your policy is in effect.

The benefit amount paid is equal to the insurance coverage amount you have at the time of your death.

The death benefit is paid tax-free, under Canadian law, to a named beneficiary resident in Canada.

What is a Living Benefit?

Should you be diagnosed with a terminal illness with less than 12 months to live, the Living Benefit makes available to you a percentage of the total death benefit under your life insurance plan. The percentage and maximum of this tax-free cash advance is dependent upon the plan you purchase. You can use this money however you wish.

CoverMe Term Life

With the CoverMe Term Life plan, up to 50% of your total term life coverage amount is available to you, to a maximum of $100,000, provided you are less than 83 years of age and your policy has been in effect for two years.

CoverMe Guaranteed Issue Life

With the CoverMe Guaranteed Issue Life plan, up to 50% of your policy amount is available to you, provided your policy has been in effect for two years.

CoverMe Easy Issue Life

With the CoverMe Easy Issue Life plan, up to 50% of your policy amount is available to you, provided you are less than 83 years of age and your policy has been in effect for two years.

FollowMe™ Life

With the FollowMe Life plan, you are eligible to receive up to 50% of your coverage to a maximum of $50,000, provided your policy has been in effect for two years.

At time of death, the amount paid to your beneficiary will be the death benefit amount less the amount previously advanced, with no adjustment in interest.

What is the difference between Term Life insurance and Mortgage Life insurance?

With term life insurance, the insurance provider pays the death benefit to your beneficiary. This gives your beneficiary the freedom to choose how best to spend the money.

Mortgage life insurance bought from a lender typically pays the death benefit to the lender.

With mortgage life insurance, the death benefit or coverage amount declines as your mortgage balance decreases, but the premium you pay remains the same. With term life insurance, your coverage amount remains the same.

Should you ever decide to switch lending institutions, you would have to reapply for mortgage life insurance whereas term life insurance is portable - you own the coverage for the duration of the term.

Should I consider CoverMe Term Life insurance as an alternative to mortgage life insurance?

Yes. It's wise to know your options.

When buying a home or renewing a mortgage, many people think they are obligated to sign up for their financial institution's mortgage life insurance. It's important to know you have options.

CoverMe Term Life insurance is a great alternative to regular mortgage life insurance because it offers you affordable premiums plus the following key advantages:

  1. Greater control for you and your beneficiary
    Mortgage life insurance typically pays the death benefit to the lender. With CoverMe Term Life insurance, Manulife will pay the benefit to the beneficiary you choose (for example, your spouse, dependant, grown children). This gives your beneficiary the freedom to choose how best to spend the money. They may decide that paying down the mortgage is the highest priority, while others may want to use the money to pay another, more pressing loan, or for living expenses, childcare, to fund post-secondary education - the choice will be theirs.
  2. Coverage that doesn't shrink with your mortgage
    The coverage amount under typical mortgage life insurance declines as your mortgage balance decreases, while the premium you pay remains the same. With CoverMe Term Life insurance, your coverage amount stays the same.
  3. No need to reapply
    With mortgage life insurance, you have to reapply every time you switch lending institutions. But with CoverMe Term Life insurance, unless you want to increase your coverage or terminate your plan, your policy is automatically renewed up to age 85 with no medical questions asked.

Remember, when thinking about your mortgage, CoverMe Term Life insurance provides you with options. You don't have to wait until you renew your mortgage. Consider the advantages of CoverMe Term Life insurance today.

Are CoverMe Term Life premiums guaranteed and fixed?

Premiums are set and guaranteed for 10 years when your policy is initially issued. Renewal premiums are not guaranteed, which means that they will increase at each 10-year renewal, but once your renewal premiums are set, they will remain the same for the next 10-year term.

Is the CoverMe Term Life policy renewable?

Yes. The policy will provide coverage for an initial period of 10 years, as long as you continue to pay your premiums. Unless you advise otherwise, it will be renewed automatically at the end of each 10-year term (for another 10-year term) at the applicable premium for your age at that time.

Renewal premiums are not guaranteed, but once your renewal premiums are set, they will remain the same for the next 10-year term. Your right to renew is automatic regardless of changes in your health or personal situation. Continuous coverage is available until you reach the policy anniversary immediately following your 85th birthday.

Is the CoverMe Term Life policy convertible?

Yes. You have the right to convert all or part of your CoverMe Term Life insurance policy to a permanent insurance plan without providing medical information or undergoing a medical examination at the time of conversion. You cannot be declined for permanent coverage under this conversion option because of your health.

Conversion options and premiums

You can convert your CoverMe Term Life insurance policy at any time before your 70th birthday. You are limited only by the Manulife conversion products available and their restrictions regarding coverage amount and minimum premium. Your new premiums will depend on the type of plan and amount of permanent coverage you select, as well as your age at the conversion date and your risk classification. For more information about conversion options, please contact us.

Benefit restrictions

If your CoverMe Term Life insurance policy has any benefit restrictions, your new policy will have those same restrictions. If you choose to convert only part of your insurance coverage, the balance remaining under your CoverMe Term Life policy must be a minimum of $100,000 (and a multiple of $25,000).

Increasing your coverage

In order to increase your insurance coverage under your new converted policy, you will need to complete another application and meet the medical qualifications required of any new applicant.

How do I get more insurance if I already have a CoverMe Term Life insurance policy?

If you are under 70 years of age, simply apply for the additional CoverMe Term Life coverage amount you desire. Depending on the coverage amount applied for, you may need to undergo a medical examination. If your application is approved, you will receive another insurance policy for the additional coverage amount. You will need to make premium payments on both policies. Your total coverage cannot exceed the plan maximum, which is $1,000,000. Also, you should be aware that there may be conditions and exclusions in your new policy.

Should I replace my existing life insurance with CoverMe Term Life insurance?

If you are considering replacing an existing individual term or permanent life insurance policy, we recommend that you contact your financial advisor, or contact us.

Who can apply for CoverMe Term Life insurance?

If you are a Canadian resident and between 18 and 70 years of age, you are eligible to apply.

What amount can I purchase?

CoverMe Term Life insurance provides affordable protection ranging from a minimum of $100,000 to a maximum of $1,000,000 (in increments of $25,000).

If you need help determining the right amount of coverage for you, you can use our tool to help calculate your Term Life insurance needs.

Who can apply for CoverMe Guaranteed Issue Life insurance?

If you are a Canadian resident and between 40 and 75 years of age, you are eligible to apply.

What amount can I purchase?

CoverMe Guaranteed Issue Life insurance provides affordable protection ranging from a minimum of $5,000 to $25,000. With CoverMe Guaranteed Issue Life, your premiums will never increase and your coverage will never decrease - Guaranteed!

Who can apply for CoverMe Easy Issue Life Insurance?

If you are a Canadian resident and between 18 and 70 years of age, you are eligible to apply.

What amount can I purchase?

CoverMe™ Easy Issue Life offers two benefit amounts- $50,000 and $75,000 of coverage.

Who can apply for FollowMe Life insurance?

You are eligible to apply if you are a Canadian resident between 18 and 69 years of age, and if you apply within 60 days of your group life coverage end date.

If you apply within 60 days of your group life insurance ending, no medical questionnaire or exam is required when you apply. If you apply after the 60 day period, full medical underwriting will be required.

What amount can I purchase?

FollowMe Life coverage is available in amounts starting from $25,000 to $200,000.

You are eligible to apply for the same amount of FollowMe Life coverage as you had with your group life plan, or less. If your spouse was also covered under your group life plan, he/she can select any amount of FollowMe Life coverage equal to or less than the amount he/she had under your group plan.

When will my life coverage begin?

Your coverage will start on the date we receive your completed application online or through the mail, provided that:

  • You are resident in Canada;
  • You are within the age of eligibility as stipulated by the plan for which you have applied;
  • You are insurable on that date in accordance with our underwriting rules, if/as appropriate for the plan you selected; and
  • The first premium due is paid.

When reviewing your application, if we find that you do not qualify for the coverage, we will notify you immediately and refund any premium paid.

What if I change my mind after applying for coverage?

If you are not completely satisfied, you may return your policy to Manulife within 30 days of the issue date to have your coverage cancelled, and your entire premium will be promptly refunded. No questions asked.

Our address is:
Consumer Solutions,
Manulife
P.O. Box 4213, Stn A
Toronto, ON M5W 5M3

What if I smoke occasionally?

You are only entitled to non-smoker rates if, on the date your application is received by Manulife, you have not used any form of tobacco, tobacco cessation products or marijuana in the past 12 months and you meet our health standards.

What if I quit smoking after I'm insured?

You should notify us after 1 year (12 consecutive months) during which you have not used any form of tobacco, tobacco cessation products or marijuana. Simply download, fill out, sign and mail to us this Change of Smoking Status form (Requires Adobe Acrobat Reader Version 3.01 or higher). When you meet the other health requirements, your lower non-smoker premiums will begin on your next premium due date.

How do I change my address?

Update your address by completing our online Change of Address form.

Or simply contact us, and our customer service representative will make the change for you.

When is my life premium due?

Your premium is due on the date indicated on your premium notice or on the first day of each month if you are paying monthly. A 30-day grace period is granted for submitting your premium after the due date. Your policy and coverage will be cancelled if you do not pay the premium due within the grace period.

How do I change my payment method?

You may pay your premiums:

  • Annually by cheque,
  • Monthly or annually by Visa, MasterCard or American Express; or
  • Directly from your chequing account by monthly Pre-Authorized Collection.

At any time, you can request to change your payment method by completing our online Change of Payment form, or by contacting us.

If you would like to update your credit card information, please contact us.

How is a death benefit claim made?

Please contact us. We will explain which documents are needed to pay the correct amount to the beneficiary.

Manulife will require proof, satisfactory to us, of:

  • The insured's death;
  • The insured's birthdate; and
  • The claimant's right to be paid.