As one of the almost 2.5 million Canadians with diabetes (source: Statistics Canada), you may have hit some stumbling blocks or even brick walls on your search for insurance of any kind. Getting life insurance when you are diabetic can be a little less straightforward than for those without it. But, it is possible to obtain life insurance for diabetics, and it may be less expensive than you assumed.

Why does diabetes affect insurance rates?

Diabetes is a disease that affects how your body uses and produces insulin, a hormone produced by your pancreas. There are three types of diabetes: Type-1 diabetes, Type-2 diabetes, gestational diabetes.

Type-1 diabetes

It is also known as insulin-dependent diabetes, is an auto-immune disorder. For Type-1 diabetics, their pancreas no longer produce insulin, a hormone that helps your body convert sugar to the energy you need. You need to administer synthetic insulin to cover for the food you eat

Type-2 diabetes

People with type 2 diabetes produce insulin, but their bodies do not use or recognize it correctly. They can deal with the condition through oral medication or diet. Type-2 diabetes is the most common form of diabetes in Canada, with approximately 90% of diabetics living with Type-2 diabetes.

Gestational diabetes

It is a temporary form of diabetes associated with pregnancy. The body cannot produce an adequate amount of insulin, leading to an increase in the amount of blood sugar. In most cases, gestational diabetes goes away post-pregnancy

So why would diabetes affect life insurance policy premiums? Well, the stress of constantly fluctuating blood sugar levels puts stress on your internal organs, like your heart and kidneys. The added stress means your organs are prone to failure in their older years. Thus, approving your application takes on added risk factors and adds to the cost of life insurance.

More specifically, Type-1 insulin-dependent diabetes is usually diagnosed in childhood and puts a lifetime of stress on one’s body. This is why insurance rates for Type-1 diabetics are higher.

Type 2 diabetes is more prevalent in individuals after the age of 40, and its effects can be quickly remedied by diet; organ stress is not as great of a factor in medical underwriting.

Gestational diabetes does not usually affect insurance rates, as most expecting mothers opt to do any medical underwriting before or after their pregnancy.

Can diabetics get life insurance?

Yes, diabetics in Canada can get life insurance in Canada. Diabetics who are in good health, with consistent medication levels, and who keep their blood sugar levels in control can qualify for standard, medically underwritten life insurance coverage.

In medically underwritten life insurance, the life insurance company will arrange for a blood test and likely request for a physician’s report to evaluate and screen for a pre-existing condition and grant approval for a life insurance policy. This process may provide more a higher death benefit for a lower premium, than no medical life insurance.

Much like anyone with a pre-existing health condition, no medical life insurance is another choice for diabetics. No medical life insurance is a policy that is issued without the insured having to undergo a medical exam. It usually has the added advantage of a simpler and faster issuance process that doesn’t require details for every medical condition one may have.

The two most common types of no medical life insurance are simplified issue and guaranteed issue. Read more about simplified vs guaranteed. 

What are the types of life insurance available to diabetics?

In Canada, diabetics have several life insurance options, though the specifics can vary based on individual health conditions and insurance providers. Here are the primary types of life insurance policies accessible to diabetics:

Term life insurance

Term life provides coverage for a specific period (e.g., 10, 20, 30 years) and is generally more affordable than permanent life insurance.

Term life insurance may have higher premiums for diabetics depending on how well the condition is managed and overall health factors

Permanent life insurance

A permanent life insurance policy includes whole life and universal life insurance. It offers lifetime coverage with an added savings or investment component and has higher premiums than term life insurance. This may also require more stringent medical exams for diabetics

Simplified issue life insurance

Simplified issue life insurance requires no medical exam but only a health questionnaire, designed for individuals with health issues who might have difficulty qualifying for traditional life insurance. This policy typically has higher premiums and lower coverage amounts and is often easier for diabetics with well-managed conditions to obtain

Guaranteed issue life insurance

A guaranteed issue policy involves no medical exams or health questions and guarantees acceptance up to a certain age (e.g., 75 years). It has higher premiums and lower coverage amounts and often includes a waiting period (e.g., 2 years) before the full death benefit is paid out.

This is suitable for diabetics with significant health issues or those who have been declined other types of insurance

Comparing life insurance options for Type 1 and Type 2 diabetes patients

Securing life insurance as a diabetic can be challenging, but options exist for both Type 1 and Type 2 diabetes. The eligibility, cost, and coverage depend on factors like age, disease duration, treatment stability, and overall health. 

While traditional life insurance requires medical exams and detailed health records, no-medical life insurance offers a quicker, hassle-free alternative, but at a higher premium. Understanding the differences in insurance options for Type 1 and Type 2 diabetes can help individuals find the best coverage for their needs.

Best life insurance for type 1 diabetics

The availability of a life insurance policy for people with type 1 diabetes depends on the age of the applicant, duration of the disease, and degree of control. Traditional life insurance companies that require lab results will also seek a doctor’s statement to establish the stability of the treatment and the condition.

In most cases, a life insurance company may apply a rating (higher premium) when approving life insurance for those with type 1 diabetes. No-medical, questionnaire-based options make for an easier and faster process in such cases, albeit they offer life insurance for diabetics at higher premiums.

For no-medical questionnaires, the focus is primarily on the age of the insured, the stability of the medication, and the risk of complications. If you are older, with no change in your insulin dependence in the last 12 months and no associated complications, you can easily get life insurance with no medical exam or obligation to provide medical records.

Best life insurance for type 2 diabetics

People with type 2 diabetes can get life insurance in Canada with the possibility of standard, competitive pricing. Life insurance companies are usually more accommodating when offering life insurance to people with diabetes who do not require insulin injections.

Traditional insurance companies may even consider granting standard regular-health pricing (even more affordable life insurance) to someone who is:

• Above the age of 50
• Controlling their blood glucose levels and providing lab results with A1C levels
• Undergoes regular medical check-ups with a physician or specialist
• Is treated with oral medications that have not been increased in the past 12 months
• Follows a diet
• And has no diabetes diagnosis associated complications

There are also several options with no medical exam for people with diabetes who may not be able to get standard pricing or those that may want easier and faster access to life insurance.

Most no-medical life insurance questionnaires contain a few questions that seek to assess how long you have had type 2 diabetes, whether your medications have changed recently, and whether you have any complications associated with this type of diabetes. Based on simple binary questionnaires, the eligibility of life insurance for diabetics can be established fairly quickly.

Best life insurance companies for diabetics in Canada

There are several companies in Canada that cater to individuals looking for life insurance in Canada. Here are some of the best ones to look out for:

• Canada Life
• Sun Life Assurance Company of Canada
• Manulife
• Desjardins Financial Services
• Industrial Alliance Life Insurance
• Beneva Inc.
• Royal Bank of Canada (RBC)

What factors affect insurance rates for diabetes?

Several factors affect insurance rates for diabetics, as insurers evaluate risk based on how well the condition is managed and its impact on overall health. Here’s a collated list of factors that influence insurance rates:

Age

• Your age when you apply for a policy: Younger applicants generally secure better rates due to lower perceived risk
• Your age when you were diagnosed with diabetes: Earlier diagnosis can lead to higher rates due to longer potential exposure to complications

Type of diabetes

• Type 2 diabetes: More common and generally considered less risky compared to Type 1 diabetes but still affects rates
• Type 1 diabetes: Often associated with higher risk due to its complexity and potential for complications
• Gestational diabetes: Typically resolves after pregnancy; however, if it leads to Type 2 diabetes later, it can affect rates

Severity of your diabetes or blood sugar control

• Well-controlled diabetes with stable blood sugar levels is viewed more favorably by insurers
• Poor control with fluctuating blood sugar levels or complications can increase risk and lead to higher premiums

Other medical conditions

• Additional health issues can increase risk and affect premiums
• A family history of diabetes or related health conditions can influence rates
• Excessive alcohol consumption can impact overall health and increase insurance premiums

Tips to lower life insurance rates for diabetics

Lowering life insurance rates for diabetics will require you to take proactive steps to manage your condition effectively and demonstrate overall good health to insurers. Here are some tips to help reduce premiums:

• Maintain good control of blood sugar levels through regular monitoring and adherence to treatment plans, which shows effective management of diabetes to insurers
• Adopt a healthy lifestyle with a balanced diet and regular exercise, which can help improve overall health and potentially reduce the risk of diabetes-related complications
• Avoid smoking and limit alcohol consumption, as these factors can negatively impact health and lead to higher insurance premiums
• Regularly visit healthcare providers for check-ups and management of diabetes, showing insurers that the condition is being actively monitored and managed
• Keep detailed records of your diabetes management, including medications, lifestyle changes, and doctor visits, to provide evidence of effective control to insurers
• Compare quotes from multiple insurance providers, as different companies may have varying criteria and rates for diabetics
• Work with an insurance expert who specializes in high-risk cases so you can find a policy that suits your specific health conditions

How to get life insurance with diabetes?

Getting life insurance with diabetes can be more challenging, but with the right approach, you can find suitable coverage. Here’s a step-by-step guide to help you:

Gather your medical information

• Collect recent medical records, including blood sugar levels, HbA1c test results, and any other relevant health information
• Prepare a list of all medications you are taking
• Note any lifestyle changes you’ve made, such as diet and exercise routines

Manage your diabetes effectively

• Regularly monitor and maintain your blood sugar levels within the target range
• Follow a balanced diet, exercise regularly, avoid smoking, and limit alcohol consumption
• Visit your healthcare provider regularly for diabetes management and check-ups

Provide accurate information

• Submit accurate and detailed records of your diabetes management, including medications, lifestyle changes, and doctor visits, to show that you are managing your condition well

Apply for insurance

• Complete the application process, which may include a medical exam for some types of insurance
• If a medical exam is required, prepare by fasting if instructed, getting a good night’s sleep, and avoiding strenuous activities beforehand

Review and choose the best policy

• Policy review: Carefully review the terms, conditions, and exclusions of your policy
• Cost vs. coverage: Balance the cost of premiums with the coverage provided to ensure it meets your needs and budget
• Final decision: Choose the policy that offers the best balance of coverage and affordability

Why does timing matter with life insurance for diabetics?

Timing matters when applying for life insurance as a diabetic because your current health status and diabetes management can significantly influence the premiums and coverage options you receive. Here are some reasons why timing is crucial:

• Stable condition: Applying when your diabetes is well-controlled and stable can result in more favorable premiums.  
• Recent health improvements: If you’ve recently made positive changes to your lifestyle, such as losing weight, quitting smoking, or improving your diet and exercise habits, waiting until these changes are reflected in your medical records can lead to better rates
• Medical advancements: If new treatments or medications for diabetes have been effective for you, showing a period of stability and improved health can work in your favor with insurers
• Age considerations: Life insurance generally becomes more expensive as you age, so, applying when you are younger and your diabetes is under control can help lock in lower rates.
• Health monitoring: Regular check-ups and maintaining detailed health records over time can demonstrate a consistent pattern of good diabetes management, which can be appealing to insurers
• Temporary health issues: If you have temporary health issues unrelated to diabetes, waiting until you recover from these conditions can help you avoid higher premiums that might result from a recent illness or medical event
• Gestational diabetes resolution: If you developed gestational diabetes during pregnancy and it has since resolved, waiting until you have a track record of normal blood sugar levels and stable health can improve your chances of obtaining better life insurance rates

Life insurance and diabetes: What can help or hurt your case

When applying for life insurance with diabetes, several factors can influence your application positively or negatively. Understanding these factors can help you navigate the process and potentially improve your chances of securing favorable rates.

What are some questions insurers may ask about your diabetes?

When applying for a policy that requires a health questionnaire or physical exam, insurers will ask about your general health, lifestyle, and family medical history. They will also have specific questions regarding your diabetes, such as:

• What type of diabetes do you have? Understanding whether you have Type 1, Type 2, or gestational diabetes helps insurers assess risk levels
• When were you diagnosed? The age of diagnosis can impact perceived risk, with earlier diagnoses potentially affecting rates
• Do you monitor your glucose levels regularly? Regular monitoring indicates effective management of your condition
• Are you taking insulin, oral medication, or both? If so, provide details on the number of insulin units per day, types of medications, and dosages
• What is your current diet and exercise routine? Your lifestyle choices can affect your overall health and diabetes management
• What is your current A1C level? This provides insight into your long-term blood sugar control
• What has been your average A1C reading over the past year? Consistency in A1C levels is important for assessing diabetes control
• Have you had any other tests related to your diabetes? This includes tests for complications or related conditions
• Who is your primary care doctor and when was your last visit? You may need to provide contact details for your healthcare team, including endocrinologists
• Do you have any diabetes-related complications? This could include high blood pressure, vision impairment, blackout spells, or kidney issues
• Have you been diagnosed with any other serious medical conditions? Conditions like coronary artery disease or kidney disease can affect insurance rates
• Have you ever experienced a diabetic or insulin coma? Such events may impact your risk profile and premiums
• Are you currently on dialysis? Dialysis indicates severe complications and can significantly affect insurance costs
• Have you had any recent hospitalizations or emergency room visits related to your diabetes? Recent health events can influence risk assessment
• Have you made any recent changes to your diabetes medication or treatment plan? Recent changes can affect your current health status and risk profile
• What is your current weight, and have you experienced any significant changes recently? Weight fluctuations can impact diabetes management and overall health
• Have you been advised by your doctor to make any lifestyle changes or undergo additional treatments? Shows ongoing medical advice and treatment adjustments

Frequently asked questions

What is the best type of life insurance for diabetics in Canada? 

The best type of life insurance for diabetics often depends on individual health conditions and needs. Generally, term life insurance may be more affordable, while permanent life insurance offers lifetime coverage and an investment component. Simplified issue and guaranteed issue life insurance policies might also be options for those who prefer not to undergo a medical exam.

Can diabetics get approved for life insurance in Canada? 

Yes, diabetics can get approved for life insurance in Canada. Approval and rates depend on factors such as the type of diabetes, control of blood sugar levels, and overall health. Insurance companies assess these factors to determine eligibility and premiums.

How much does life insurance cost for diabetics in Canada? 

The cost of life insurance for diabetics in Canada varies based on several factors, including the type of diabetes, age, overall health, and the level of coverage required. Premiums may be higher than for individuals without diabetes due to the increased risk associated with the condition.

When is the best time for a diabetic to apply for life insurance in Canada? 

The best time for a diabetic to apply for life insurance is when their diabetes is well-controlled and stable. Applying when you are younger and healthier can also help secure better rates. It is advantageous to apply after recent improvements in diabetes management or overall health.

Do all life insurance companies in Canada offer coverage for diabetics? 

Not all life insurance companies in Canada offer coverage for diabetics. Some insurers specialize in high-risk cases and may provide coverage options tailored to diabetics. It is important to compare policies and work with a broker who can help find insurers willing to offer coverage.

Can diabetics get a life insurance policy if they have been turned down before?

Yes, diabetics can get life insurance if they have been turned down before or denied coverage. Read more about your life insurance options when your application has been declined.

Life insurance riders provide policyholders with additional benefits that can be customized based on individual needs. One such valuable rider is the guaranteed insurability (GI) rider, which lets policyholders increase their life insurance coverage at specific intervals without undergoing medical underwriting.

In this article, we’ll explain the purpose, functionality, benefits, and cost of a GI rider in Canada to help you determine if this option aligns with their financial and health planning goals.

What is a guaranteed insurability rider?

A guaranteed insurability rider is an optional add-on to a life insurance policy that allows policyholders to purchase additional coverage at predetermined intervals without requiring a medical exam or proving insurability. This ensures that individuals can secure higher coverage despite potential changes in their health or lifestyle.

The rider is available on certain term and permanent life insurance policies and is particularly beneficial for those who anticipate increased financial responsibilities in the future, such as starting a family or purchasing a home. 

For example, if you suspect you may face future health problems through means like genetic testing or due to a history of family health issues or lifestyle choices, a GI rider might be useful to add to your life insurance policy. 

It’s also beneficial if you currently have a limited budget, but want to ensure that you’ll have the option for purchasing additional coverage later on, as your budgeting flexibility improves over time.

How does a guaranteed insurability rider work?

A guaranteed insurability rider operates on a structured timeline, providing opportunities to increase coverage at specific milestones. Policyholders can exercise their option to purchase additional coverage every few years (typically every three to five years) on the policy anniversary date.

Additionally, certain life events can also trigger the ability to increase coverage, such as marriage, the birth/adoption of a child, or purchasing a home. However, the option to increase coverage must be exercised within a set timeframe (e.g., 30 or 90 days) following the policy anniversary or a qualifying life event. 

Lastly, the typical timeframe to exercise this rider starts five years from the original policy’s effective date.

Who needs a guaranteed insurability rider?

A guaranteed insurability rider is ideal for individuals who anticipate needing more life insurance in the future but want to avoid future medical exams that could result in higher premiums. It is especially beneficial for those with pre-existing medical conditions or a family history of health issues, as it ensures they can increase coverage regardless of any changes in their health.

How much does a guaranteed insurability rider cost?

A guaranteed insurability rider is generally an affordable addition to a life insurance policy and approximately costs between $3 and $21 for people aged 25-45 years, varying based on age.

However, it is important to note that while adding the rider itself is inexpensive, the actual cost of increasing coverage when exercising the option will depend on your age at that time. 

The later you choose to exercise the GI option, the higher the cost of the additional coverage due to increased age-related risk. The table below shows the cost of adding a GI rider to a $100,000 life insurance policy:

When can you buy a guaranteed insurability rider?

In most cases, you must buy a GI rider at the time of applying for your life insurance policy. The decision to include a GI rider is made during the underwriting process, where the insurer assesses the financial risk of offering this option.

A GI rider cannot be added after your policy has been issued, so it’s essential to consider whether you need it at the time of application. Insurers evaluate an applicant’s health and overall risk profile during underwriting, determining whether to approve the rider and set an appropriate cost.

For instance, if an applicant has a medical history of cancer or another high-risk condition, an underwriter may deny the GI rider because the increased risk of future claims could pose a financial liability for the insurer. If approved, the insurer locks in the right to purchase additional coverage in the future, regardless of changes in health.

How many times can you use a guaranteed insurability rider?

Most guaranteed insurability riders permit policyholders to purchase additional coverage every three to five years on the policy anniversary date. This means that you can increase your coverage only at these predetermined intervals. 

Additionally, some insurers allow coverage increases during major life events, such as marriage, the birth or adoption of a child, or purchasing a home. There is also usually a maximum number of times the option can be exercised over the life of the policy. 

For example, an insurer may allow a policyholder to increase coverage up to five times throughout the duration of the policy, up to a certain age (commonly 50 or 55). Each time you choose to increase your coverage, the insurer will offer a predetermined amount based on the original policy terms.

What are the advantages and disadvantages of a guaranteed insurability rider?

A guaranteed insurability rider does not require medical exams, allows you to purchase more coverage at different intervals and is ideal for life events such as marriage, childbirth, etc. However, it comes with disadvantages like limited availability, extra premiums, and a specific window within which you can exercise this option.

  Advantages and disadvantages of a guaranteed insurability (GI) rider

At what age does guaranteed insurability end?

A guaranteed insurability rider typically expires when the policyholder reaches a certain age, which varies by insurer but is commonly between 40 and 50 years old. Once the rider expires, the option to purchase additional coverage without a medical exam is no longer available.

Most insurers set the cutoff age at 40, 45, or 50, depending on their specific policies. This age limit exists because, as individuals get older, the risk of health issues increases, making additional coverage riskier for the insurer.

As we often say – life insurance is not a one-size-fits-all product. Canadians purchase life insurance policies for a variety of reasons: to cover a mortgage loan or debt, to provide a financial cushion to their loved ones, or to cover the costs of their children’s education – in case the insured passes away. With such diversity in use cases for life insurance, individuals choose different coverage amounts and periods to align life insurance policies with their needs.

But, life insurance can be personalized even further with a life insurance rider.

How do insurance riders work?

A life insurance rider is an optional feature that can be added on to a life insurance policy to enhance and customize it to better address one’s unique needs.

Types of Life Insurance Riders: Quick Reference Guide

Click on any rider name to jump to the full description below.

PolicyAdvisor’s latest research finds that only 48% of Canadians feel their insurance coverage adequately protects their families from the financial impact of COVID-19 should they become ill or pass away from the virus.

Our State of the Nation: Life Insurance Trends 2021 report takes the temperature on Canadians’ attitude towards spending, saving, job security, and life insurance in a near post-pandemic economy. 

More insights from State of the Nation: Life Insurance Trends 2021

• Over half of Canadians surveyed (59%) are concerned about inflation’s effect on the cost of living and rising interest rates. 
• Job security concerns worry many Canadians (14%) facing a stalled economy. 
• Canadians plan on spending less on entertainment (51%), travel (43%), and clothing (42%). 
• The least expendable budget item for surveyed Canadians is life and health insurance. Eighty percent (80%) will maintain their current level of insurance protection throughout the ongoing health crisis, or even purchase more.
• Over half (52%) of Canadians feel uncertain as to whether they have adequate financial protection for themselves or their loved ones should they be stricken with a COVID-related sickness or death.
• The perceived expense of life insurance is a primary barrier for 45% of those that haven’t purchased life insurance.

Stay tuned for more in-depth analysis and breakdowns of each insurance trend in 2022. Browse the report below or download the full resolution version for free.

The COVID-19 pandemic has far-reaching effects on all aspects of our lives, including personal finances.

According to a survey of 2000 Canadians conducted by MNP Consulting in 2021, over 30% are on the verge of insolvency. With a wave of layoffs and furloughs, this figure has most likely increased in recent weeks. In fact, almost 1 million Canadians applied for Employment Insurance as of the beginning of April 2020 (Global News).

In times like these, Canadians are increasingly anxious about their financial future. This is a normal feeling. Many of us will need to take new and unfamiliar steps to manage our financial situations.

But there is positive news – the Canadian government announced several different relief measures for individuals, families and businesses affected by COVID-19. Keep these services and programs top of mind as you work out your financial plans in the coming months and prepare as you best you can for an uncertain year ahead.

Government Relief Initiatives

We have compiled a summary of relief measures the Canadian and Ontario governments are offering to individuals. Details of various measures are given here.

Please note that this information is not static: As the plans are fleshed out and more measures are announced, we will keep updating this list. For the most up-to-date information, you need to visit Canada’s COVID-19 Economic Response Plan website.

Individuals

Families

• Emergency Care Benefits of up to $900 biweekly for 15 weeks for qualifying workers and parents
• Canada Child Benefit (CCB): An extra $300 per child through CCB for 2019-20
• $200-250 for school supplies and online learning per child, as a one-time grant (Ontario-specific)
• $40-60 per day for parents of school-age children with special needs (Ontario specific)
• The filing date for Income Tax returns is deferred to June 1, 2020. Tax balances due are deferred to August 31, 2020, without any penalty
• A one-time special payment for low- and modest- income families through the Goods and Services tax credit
• Mortgage support: Case-by-case assistance, including no penalty mortgage deferral (see below)
• Credit cards: Reduction in rates, case-by-case assistance (see below)
• Renters: Freeze on evictions in most provinces

Those sick, quarantined, or in directed self-isolation

• No medical certificate required to access Employment Insurance (EI) sickness benefits

Those facing unemployment

• The Canada Emergency Response Benefit: a taxable benefit of $2,000 a month for up to 4 months to workers who have lost their income (see below)

Shelters

• $50 million for women’s and sexual assault centers 
• $157.5 million to support people experiencing housing insecurity and homelessness

Indigenous Communities

• $305M for a new Indigenous Community Support Fund

Seniors

• A reduction in minimum withdrawals from Registered Retirement Income Funds (RRIFs) by 25% for 2020, to mitigate portfolio value decline
• Practical services: $9 million to support Canadian seniors, including grocery and medication delivery through local organizations

Students and Recent Graduates

• Student loans: To support those with student loans during COVID-19, payments will be suspended without interest accruing to borrowers until September 30th, 2020 (read more)

Youth

• $7.5 million in funding to Kids Help Phone, a service which offers 24/7 mental health counselling over phone calls, text and live chat to Canadian youth

Canada Emergency Response Benefits – CERB

If you have had to stop working or lost your job because of COVID-19, you should apply for the Canada Emergency Response Benefit (CERB), whether or not you are eligible for Employment Insurance (EI). 

The benefit is available from March 15 to October 3, 2020. If you became eligible for EI on or after March 15, you need to apply for CERB and it will not affect your EI benefits eligibility when the benefit ends in October.

The benefit is processed in 4-week periods. Depending on your situation, you can re-apply every 4 weeks, for a maximum of 16 weeks (4 periods).

You can apply through one of two methods:

• Online, through the Canadian Revenue Agency’s (CRA) My Account portal
• Offline, through an automated phone service (1-800-959-2019 or 1-800-959-2041)

Your payments will be credited through direct deposit to your bank account (most Canadian banks have updated their web portals to make this easier to set up) or by cheque.

For more details, including specific eligibility criteria, please visit the CRA’s website.

Who to contact?

• Benefits and financial help for children and families are handled by the Ministry of Children, Community and Social Services. They can be contacted at 1-888-789-4199. (Ontario specific – other provinces may vary)
• To apply for CERB, you need to log in to your CRA account or create one if you have not accessed it online before. The CRA also maintains a helpline where you can speak to an agent: 1-800-959-8281
• EI: Depending on your eligibility, you can apply for EI benefits such as maternity, parental and caregiving benefits. For EI, you need to apply online.

Personal Finance

Credit cards

Most of Canada’s major banks announced they are temporarily reducing credit card interest rates to provide relief to customers during the COVID-19 pandemic.

Bank of Montreal (BMO) and Scotiabank

• Temporarily reducing rates to 10.99% for personal and small business customer receiving payment deferrals

National Bank

• Reducing annual interest rates to 10.99% for clients receiving three-month payment deferrals and temporary increases in credit limits on a case-by-case basis

CIBC

• Lowering interest rates to 10.99% on personal credit cards for users who request to skip a payment

RBC

• After an advisor completes a financial review, customers can be eligible for a 50% credit of their interest charges for a specific period of time

Desjardins

• Temporarily reducing interest rates to 10.99% for all personal members and clients with a Desjardins credit card and who are deferring payments 

While some of these changes are automatic, in many cases you are required to call your financial institution or credit card company and request they apply these measures to your account.

Banks generally charge interest fees between 15-22% on credit cards, so this is a significant decrease. The caveat is that these deferrals do not provide debt relief and interest will continue to accrue during the deferral period.

The federal government is also exploring providing low-interest credit options to Canadians, though nothing concrete has been announced thus far.

Student Loans

The National Student Loans Service Centre (NSLSC) announced payments will be suspended without interest accruing to borrowers until September 30th, 2020 to support those with student loans during COVID-19. This is an automatic process; you do not have to apply for a deferral. You may optionally continue to make payments through your NSLSC account.

However, this is applicable to only loans issued by federal and provincial government institutions. If your student line of credit was issued by a private institution, such as one of Canada’s major banks, you will need to contact them to find out what relief measures they may offer.

Support for Renters

This varies from province to province. On March 17, the Ontario government announced that no new eviction notices will be issued until “further notice” and the enforcement of scheduled evictions will be postponed. While renters are still required to pay rent during this period, they should inform their landlord and work with them to come up with a practical arrangement if they cannot make payments at this time.

Under Ontario’s Residential Tenancies Act, landlords cannot charge fees or penalties for late rent payments.

Mortgage Support

The federal government, through the Canada Mortgage and Housing Corporation (CHMC), is permitting lenders to allow immediate payment deferral on mortgages covered by CMHC’s mortgage loan insurance.

All homeowners currently in good financial standing with their mortgage lender can apply for mortgage relief from their lender if they have been impacted by COVID-19. This will be processed on a case-by-case basis. Mortgage deferral is not equivalent to mortgage forgiveness. Interest will accrue on any mortgage payments that are deferred, and payments will need to resume once the deferral period is complete. Even if a mortgage isn’t insured through CHMC, homeowners should contact their lender to find out their options.

The following announcements have been made by some of Canada’s largest mortgage lenders:

BMO

• Up to a 6-month payment deferral on a case-by-case basis

Scotiabank

• Mortgage payment deferrals are available for customers experiencing hardship

National Bank

• Deferral of mortgage payment without accruing additional interest for 2 months. You will need to continue paying administrative charges and mortgage insurance premiums

CIBC

• Up to a 6-month payment deferral for mortgages on a case-by-case basis

RBC

• You may skip up to two monthly payments. For longer term relief, applications will be evaluated by financial advisors

Other Loans (Personal, Line of Credit, Auto Loan)

Most banks have announced they are offering “opportunities for relief” for these products.

Some banks, such as RBC, offer the option to immediately defer payments of principal and income for a period of up to six months depending on their needs. Depending on whether it is a fixed or variable interest product, deferred interest will be added to the outstanding loan balance, but interest may or may not be charged on the deferred portion. Contact your individual lender for up-to-date info, as the measures vary greatly across institutions.  

The effects of these measures on credit scores, if any, is still not known.

General Tips

Other General Tips for getting through this difficult time:

• Offers via email and text require extra scrutiny. Calls and messages offering free relief from the CRA, creditors, or any other agency may be fraudulent or part of a phishing scheme aimed at acquiring your personal information. Contact the CRA, your bank, telephone service provider or any other utility directly to verify any offers or check on your account status.
• Proceed with caution when exploring unsecured personal loans, payday loans, and other high interest sources of credit. These lenders offer huge amounts of credit with immediate availability. However, these should be considered only as a last resort when one has exhausted all other options for loans or credit; these products have multiple hidden charges, escalating late payment fees, and extremely high, cumulative interest rates.
• The Ontario Works Program can help you with the cost of food and housing if you are in temporary financial need. This includes Emergency Assistance for those facing financial crisis due to COVID-19 or other emergency situations (such as floods, fire, etc).

COVID-19 and Financial Protection

Getting life insurance quotes and other living benefits during this time can still be straightforward with a digital broker. We’ve created some resources to help you navigate the insurance world during this current situation.