Group Insurance and Medical Tests

Most group insurance policies in Canada do not require medical evidence with the application, meaning that employees in the company can obtain life, disability and health coverage without a medical. The one caveat is, the insurance company can adjust the company's premiums on renewal if they have a very high claims experience.

Most insurance carriers in Canada have a non-evidence limit on life insurance and disability insurance. The amounts for long-term disability insurance vary from company to company, but they're generally in the $1,500 a month benefit range and the $75,000 range in terms of life insurance.

Union of Canada Life to be Liquidated

The Ontario Superior Court of Justice
has ordered Union
of Canada Life liquidated.

On February 2, 2012, the Ontario Superior Court of Justice ordered that Union of Canada Life cease all business operations and its remaining assets be liquidated, finding that the insurance company had insufficient capital to ensure long-term viability.

"Union of Canada Life was faced with unique challenges that caused the company to seek court protection,” Gordon Dunning, president and CEO of Assuris told Advisor.ca. “Our analysis indicates this company had extremely high strategic, market and operational risks and insufficient capital to ensure the long-term viability of the company in a low interest rate environment.”

Assuris is a non-profit organization that is under a Canadian federal regulation to protect policyholders should their insurance company become insolvent. This means that Union of Canada policyholders will maintain their benefits, their policies will simply be transferred to another insurance company in good financial standing.

Grant Thorton Limited has been named as liquidator and Assuris will be working with them to keep policyholders informed as to how their respective benefits are protected.

BMO Releases 2011 Annual Report

On January 30, BMO Financial Group, the parent company of the Bank of Montreal and BMO Life Insurance, released their 2011 Annual Report on their website.

It revealed that the company took in a reported net income of $3,266 million during the fiscal year, which is up 16 per cent or $456 million from the year before. Their adjusted net income rose 15 per cent from the year before to $3,281 million — a difference of $439 million.

Group Life Insurance in Canada

Group insurance policies in Canada almost always include a group life insurance component.

How Group Insurance works in Canada

The group life insurance component can be subdivided into basic life insurance, which provides the employee with the basic amount of coverage. This coverage amount can be a flat amount or a multiple of the employee's earnings.

Generally speaking, the larger the group, the more generous the basic life insurance amounts. Optional life insurance allows the employee to take out additional life insurance on top of his or her basic life insurance coverage. This optional life insurance is subject to underwriting requirements. Optional life insurance rates can also be adjusted at the group's renewal rate, which is often set as part of a five-year rate band.

Most group policies also provide spousal life insurance coverage.

New question in Life Insurance FAQ

New question in Life Insurance FAQ:

Hello I'm looking for life insurance policy in Canada that: 1) Requires no medical exam, 2) Can be paid up in 10 years or less and, 3) May be purchased without going through a broker. Thanks for your help

Thanks for the question. In term of a no medical life insurance options. You can choose between Guaranteed Issue (no health questions and no medical tests) and Simplified Issue (3 to 12 health questions and no medical tests) Simplified Issue plans have lower premiums, higher face amounts and can provide coverage from day one. Guaranteed Issue plans have a two year waiting or longer on non accidental deaths. Most direct suppliers of No Medical Life Insurance plans offer Guaranteed Issue plans and non that we are aware of are paid up in 10 years.

Read more questions and answers about Life Insurance FAQ.