As you may be aware, the Manitoba Government recently introduced a 7% retail sales tax (RST) on creditor insurance premiums related to loans and mortgages.
This tax goes into effect on July 15, 2012 so any member who currently has insurance on their loan or mortgage will see an increase of 7% on these monthly premiums after this date.
The following insurances are affected:
Accidental Death policies and mortgage loan insurance premiums and surcharges, like those from CMHC, are also subject to the 7% RST.
For more information on this new tax, please visit the Manitoba Government website at www.gov.mb.ca.
For any questions specific to your insurance program, please contact the CUMIS Life Insurance Company at 1-800-263-9120.