Enhancing your account: Frequently asked questions

Manulife One creditor's group insurance is an optional product that is available to any eligible Manulife One account holder, who is between 18 and 64 years of age and a resident of Canada. You must be a resident of Canada for income-tax purposes, in accordance with Income Tax Folio S5-F1-C1, Determining an Individual’s Residence Status -- http://www.cra-arc.gc.ca/tx/tchncl/ncmtx/fls/s5/f1/s5-f1-c1-eng.html.

If you choose to apply for our creditor's group insurance and your application is approved, you will receive life insurance coverage, as well as disability and job-loss protection if you chose to apply for this type of coverage too. Life insurance coverage continues to age 70. Disability and job-loss coverage continues to age 65.  For more information, please review the Manulife One creditor's group insurance plan distribution guide.

As an account holder, you must be actively employed and working at least 25 hours per week. If you are self-employed, you may qualify for disability insurance; however, you would not qualify for job-loss insurance.

Our creditor's group insurance can cover credit limits up to $500,000.

Once your application is approved, you will receive certificate of insurance in the mail outlining the details of your insurance coverage. Your effective date of coverage will be the later of the date Manulife receives your written application and the first full premium payment, subject to underwriting approval.

Manulife One creditor's group insurance is available for eligible joint account holders. Joint insurance premiums are based on the age of the oldest borrower.

The smaller your outstanding balance, the lower your monthly premium. Premiums are calculated based on the outstanding month-end balance of your Manulife One account and they will vary based on your age and the account balance. Premium tax, where applicable, will be added to the premiums.

Here is a rate table and an example that illustrates how premiums are calculated.

Life insurance

Monthly rates per $1,000 outstanding balance

*Rates are not guaranteed and are subject to change.

Disability and job-loss insurance

Monthly rates per $1,000 outstanding balance

*Rates are not guaranteed and are subject to change.

Example:

Let’s assume you have an outstanding monthly balance of $100,000 and you are 40 years old. You divide $100,000 by 1000, and multiply the answer by the premium rate for your age group as shown in the chart:

Balance divided by 1,000 Premium rate from chart Monthly premium

Life: $100 x0.18 = $18

Disability and job loss: $100 x0.17 = $17

Total life, disability and job loss: = $35

JOINT insurance premium is based on the monthly premium rate of the older borrower multiplied by a rate factor of 1.4 for life and a rate factor of 1.9 for disability and job-loss coverage.

Balance divided by 1,000 Premium rate from chart Monthly premium

Life: $100 x 0.252 = $25.20

Disability and job loss: $100 x 0.323 = $32.30

Total life, disability and job-loss: = $57.50

Provincial taxes will be added where applicable.

Yes, all applicants are required to answer questions about their health. If you answer “yes” to any question, medical testing may be required. More detailed underwriting will also be required if your borrowing limit is greater than $250,000.

Yes, if you choose to increase your Manulife One borrowing limit from an amount of $250,000 or less to an amount greater than $250,000, you will need to submit a new application to have your policy cover the portion of your debt exceeding $250,000. If your application for additional coverage is denied, the amount you’re insured for will remain unchanged. If you’re interested in applying for additional coverage, contact us at 1-866-388-7095.

No life benefit will be paid if your death results from:

• A condition that existed six months prior to the effective date of coverage or a pre-existing condition that required medical treatment within the six months immediately following the effective date of coverage;

• Intentionally ending your life within two years of the effective date of coverage;

• Committing or attempting to commit a criminal offence;

• Operating a motor vehicle legally impaired;

• As a result of any act of war, insurrection or terrorism; or

• Traveling in or descending from any aircraft unless you are a fare-paying passenger on a commercial flight.

No benefit will be paid if total disability results from or occurs during:

• A normal pregnancy, maternity or parental leave;

• Intentionally self-inflicted injuries while sane or insane;

• Any period of disability during which you are not under the regular care of a physician and following the appropriate treatment;

• Committing or attempting to commit an assault or criminal offence;

• Any act of war, terrorism or insurrection;

• A pre-existing condition within 24 months following the effective date of coverage.

Also, no disability insurance benefit will be paid if you are receiving job loss benefits under this certificate.

No benefit will be paid if job loss results from or occurs during:

• A normal pregnancy, maternity or parental leave

• A leave of absence

• Dismissal with cause

• Voluntary resignation

• Seasonal conditions or work that is seasonal in nature

• Temporary or contract employment

• Retirement, whether voluntary or mandatory

• Any act of war, terrorism, insurrection or natural disaster

• Intentionally self-inflicted injuries, while sane or insane

Also, no benefit will be paid if:

• At the time of claim, you are self-employed, an independent contractor or working for an immediate family member who effectively controls at least 25 per cent of voting shares of any company you are working for;

• You were aware of impending unemployment 90 days before applying for insurance;

• You are dismissed for any reason within 90 days of starting work for any employer; or

• You are receiving disability benefits under this certificate.

Life insurance: Only one claim may be paid per policy. If there is joint coverage in place, only one life insurance benefit will be payable.

Disability and job-loss insurance: A period of 24 months must lapse between each period of job loss to qualify for subsequent benefits. If multiple disability and/or job-loss claims are made during the same time period, monthly benefits will only be paid for one claim at a time -- the one that was made first. This applies to both individual and joint coverage.

You can pay your premiums automatically from your Manulife One account, or from an account of your choice.

Any claims payments will be deposited into your Manulife One account.

You can cancel the creditor's group insurance at any time if you feel the coverage doesn’t meet your needs. Simply contact us at 1-866-388-7095. If you cancel within 30 days of receiving the certificate of insurance, you will receive a refund of any premiums paid.

Your creditor's group insurance benefits will terminate:

• If, after the grace period, any premium is not paid when due;

• As of the premium due date after we receive written notice that you have requested to terminate your certificate;

• As of the date your Manulife One account ceases to be a line of credit account;

• As of the date the group policy terminates;

• As of the date you or the joint insured dies;

• As of the date both you and the joint insured (if applicable) exceed the cessation of benefits age.