2011 Premium Refund for Business Expense, Disability Income, and Term Life Insurance - Oct.2011
The CBIA is excited to announce that, as a result of better than anticipated financial performance, CBIA Business Expense, Disability Income, and Term Life certificate owners will share in over $6,000,000!
Business Expense certificate owners will receive a cheque in an amount equal to 100% of their 2010 paid premiums.
Disability Income certificate owners will receive a cheque in an amount equal to more than 8% of their 2010 paid premiums.
Term Life certificate owners will receive a cheque in an amount equal to more than 14% of their 2010 paid premiums on combined face amounts of $1,500,000 or less per life insured.
It’s our goal to help you buy quality insurance at the lowest possible cost. If better than expected plan performance results in a financial position that exceeds the long-term requirements of an insurance program, this money is not kept as profit, it is returned to you. Such is the case with the over $6 million now being refunded to most Term Life, Disability and Business Expenses insurance customers.
Details of the 2011 Refund of Premium program for Business Expense Insurance certificate owners:
• Eligible Business Expense Insurance certificate owners will receive a cheque in an amount equal to 100% of paid 2010 policy year (December 1, 2009 to November 30, 2010) premiums.
• Only Business Expense Insurance certificates that are in-force and had premiums paid during the 2010 policy year and continue to be in-force on September 30, 2011 qualify for a return of premium.
• Waived premiums due to a claim during the 2010 policy year do not qualify for this offer.
Details of the 2011 Refund of Premium program for Disability Income Insurance certificate owners:
• Eligible Disability Income Insurance certificate owners will receive a cheque in an amount equal to 8.2% of paid 2010 policy year (December 1, 2009 to November 30, 2010) premiums.
• Only Disability Income Insurance certificates that are in-force and had premiums paid during the 2010 policy year and continue to be in-force on September 30, 2011 qualify for a return of premium.
• Waived premiums due to a claim during the 2010 policy year do not qualify for this offer.
Details of the 2011 Refund of Premium program for Term Life Insurance certificate owners:
• Eligible Term Life Insurance certificate owners will receive a cheque in an amount equal to 14.3% of paid 2010 policy year (December 1, 2009 to November 30, 2010) premiums.
• Only Term Life Insurance certificates that are in-force and had premiums paid during the 2010 policy year and continue to be in-force on September 30, 2011 qualify for a return of premium.
• Waived premiums due to a claim during the 2010 policy year do not qualify for this offer.
• Premiums are refunded for face amounts up to $1.5 million only. For insured lives that have combined face amounts higher than $1.5 million, a prorated refund will be calculated as follows,
| 2011 Refund Example (total coverage exceeds $1.5 million) | |
| Total Term Life Insurance coverage for life insured | $2,000,000 |
| Total paid Term Life premium for 2010 policy year | $1,095 |
| Maximum coverage limit for refund | $1,500,000 |
| Portion of total coverage that is eligible for refund | $1,500,000 / $2,000,000 = 75% |
| Portion of total premium that is eligible for refund | $1,095 x 75% = $821.25 |
| Percent of paid premium to be refunded | 14.3% |
| Total amount payable | $821.25 x 14.3% = $117.44 |
Sales Tax paid on Premium Amounts (Ontario and Quebec only)
A return of paid sales tax based on the Return of Premium amount for 2010 will appear as a credit on the December 1, 2012 invoice.
Multiple Products
Individual cheques will be issued for each product. For example, a client who owns two Term Life certificates and one Disability Income Replacement certificate will receive two cheques; one cheque for the two Term Life certificates and one cheque for the Disability Income Replacement Certificate.
Sharing our Success with our Customers
While we cannot guarantee our future performance, over the last 13 years most CBIA clients have benefitted from a combination of over $43,000,000 in returned premiums, rate reductions, and improved benefits.
If you have not already done so, now is a great opportunity to re-evaluate your insurance needs. Call your Authorized CBIA Representative for more information.