Canadian Life Insurance Companies:

News from 2010

Term 15 Life Insurance

May 30th, 2010
Unity Life of Canada joined the Foresters family in April 2008 and as of Jan 23 2012 changed their name to Foresters Life Insurance Company.
Confused by Ben W
Term 15 is Renewable
to age 75 or 80.
Photo by Ben W

Term 15 life insurance offers a hybrid type policy for those, who are wavering between Term 10 plans and Term 20 policies. The premiums are fixed for 15 years and most plans are renewable to age 75 or 80. Additionally, most policies are convertible to a permanent plan without a medical.

The following are the pros and cons of Term 15 coverage:

The Pros
1. Affordable life insurance.
2. Most policies are convertible without a medical should the insured’s needs change.

The Cons
1. Premiums increase significantly as the insured ages.
2. There are only a handful of life insurance carriers in Canada who offer Term 15 coverage and, in some instances, the premiums are only marginally lower than 20-year term policies.

The following is sample standard rate pricing for $250,000 of coverage for a male non-smoker Term 15 coverage:

1. Industrial Alliance: $30.38/month.

2. Unity Life: $37.13/month.

3. Primerica: $43.23/month.

For more details, please feel free to visit our website and while there, visit our Instant Quote Page or contact us at 1-866-899-4849.

Term to 75 Life Insurance in Canada

May 29th, 2010
Riga Old Man by Ricardo Liberato
Term to 75 life insurance
ends at age 75.
Photo by Ricardo Liberato

Term to 75 life insurance offers level premiums up to age 75 and, depending on the insurance company's conversion premium, the plan can be converted to a permanent policy without a medical. However, Term to 75 is a double-edged sword, carrying advantages and disadvantages.

The advantages of a Term to 75 policy;
1. Lower premiums than a permanent plan.
2. A hybrid of Permanent and Traditional Term 10 or Term 20 life policies


The disadvantages of a Term to 75 policy;
1. There are a limited number of insurance companies in Canada offering Term to 75 coverage, so the pricing is not always competitive.

2. Insured persons in their 50s and 60s are likely better off with a Term 10 or Term 20 plan. With those Term plans, there is more selection and better pricing available.

3. Since Term to 75 policies end at age 75, the insured is likely to find it difficult and expensive to obtain new life insurance once they reach that age.

The following are premium values for $300,000 of coverage meant for a 40-year-old male, non-smoker on the Term to 75 Plan.

1. Industrial Alliance: $300,000.00 Term to 75 pick-a-term coverage is $90.99 a month.

2. Cooperators Life Insurance Company: $300,000 level Term to age 75 Participating Plan is $98.01 a month.

 

For more details, you can contact us at 1-866-899-4849 or visit our Instant Quote Page.

BMO Insurance adds ETFs to its Universal Life Dimesion Plan

May 29th, 2010
Canadien money by Duckie Monster
Make money with
ETF investments.
 Photo by Duckie Monster

BMO Insurance has paired its Universal Life Dimension Plan with an Exchange Traded Funds investment opportunity. It is offering ten exclusive ETF market indexed accounts with 19 different market indexes to choose from.

ETFs are open-ended funds that are listed and traded on a stock exchange as another investment option. Each fund is a grab-bag of securities, which may consist of stocks, bonds or other assets such as, commodities.

The asset mix of an ETF generally aims to track the performance of a market index and can broadly be classified into equity, bond and commodity ETFs.

When ETF investments are tied to a universal life policy, you are credited with an interest amount mirroring the net rate of return on the underlying ETF investment - minus a Universal Life fee. (Currently 3% on Life Dimension and 2% on Life Dimension with a Low Fees Option).

Participating Whole Life Dividend Scales in 2010

May 29th, 2010
Business Graph by Balazs Gal
Capitalize on the success
of your insurance provider.
Photo by Balazs Gal.

Participating Whole Life policies differ from non-participating Whole Life policies in that they offer both the cash value and a dividend, which allows the insured to share in the profitability of the insurance carriers.

Dividend rates tend to be tied to long-term interest rates, and while dividend rates from different life insurance companies are at a historical low, they fair very favourably compared to other interest-based investments.

Below is a summary of 2010 dividend scales for four different life insurance carriers, who offer participating whole life plans:


1. Canada Life 2010 dividend scale is 7.4%

2. Great-West Life 2010 dividend scale, 6.9%.

3. London Life 2010 dividend scale, 6.9%.

4. Manulife 2010 dividend scale is 7%.

*Historical rates for Manulife's Performax par product. 2010 rate is for Performax Gold Performance Credit.

For more details on participating Whole Life insurance policies in Canada, please contact us at 1-866-899-4849, or visit our Whole Life Insurance Instant Quote page.

BMO Easy One Life Insurance Pricing

May 19th, 2010
Old Man by mrhayata
Old Man by mrhayata

BMO Insurance's Easy One application is sold directly by BMO Insurance and is not available via its independent broker channel. The plan provides lifetime protection and immediate coverage. The insured must answer a health declaration verifying that they do not have a serious illness. The coverage amounts are $2,500, $5,000, $10,000 and $15,000.

( BMO Easy One Life Insurance Pricing continued...)

Industrial Alliance Non-Participating Whole Life Plan

May 17th, 2010
industrial logo
 

  Industrial Alliance offers a Non-Participating Whole Life policy, which has a variety of pay options:
 

The policy provides fully-guaranteed coverage for life and allow the insurer to choose between payment options of 10 years, 15 years and 20 years, to the of age 65, or with a life-pay option instead. The minimum face-amount on the policy is $10,000. Coverage is available on a joint first-to-die basis, or a joint last-to-die basis. The plan also has a multi-life option, where you can cover up to nine insured people on the same contract. Preferred rates are also available to the individuals in the group who are in excellent health and have a very good family health history.

Additional features include a host of riders including their pick-a-term riders, which allows the insured to choose a term rider lasting from ten years to 40 years – the insured can also loan up to 95% of the policy's cash value.

For more details on non-participating, Whole Life Policies in Canada, please contact us at 1-866-899-4849 or visit our Whole Life Quote Page.

Co-operators Participating Whole Life Policy

May 17th, 2010
parents said they worry about their familys by Kipp Jones
Co-operators has a plan for kids.
Photo by Kipp Jones.

Co-operators offers a participating Whole Life policy to insured’s up to age 80. The policy is available with a minimum face amount of $10,000 and is only available on a single-life basis. Joint-life and multi-life policies are not available. However, they do have a participating Whole Life plan for children called, Estate Foundation – face amounts on this plan can be as low as $5,000.

The current dividend scale on both plans is 1.9%. The adult version offers three payment options: payable for life, payable for 20 years, or payable to age 65. The plan has two dividend options:

1) Paid-up additions

2) Accumulate with interest.

For more details on participating whole life insurance policies in Canada, please contact us at 1-866-899-4849 or visit our Whole Life Insurance Instant Quote Page.

A Head-to-Head Comparison of Assumption Life Non-Medical Plans

May 14th, 2010
Confused by Ben W
Which Assumption Life plan
is right for you?
Photo by Ben W

Assumption life offers three simplified insurance policies under their non-medical life insurance umbrella.

The first is Total Protection, which has a limited number of health questions and no medical tests. The premiums on Total Protection are higher and the death benefit has a two-year waiting period on non-accidental deaths.

Their flagship plans, Golden Protection and Golden Protection Plus, are also available without a medical but, have an increased number of health questions. Both plans offer coverage from day one, a living benefit feature at no additional cost, an accidental fracture rider, immediate coverage with no waiting period, and a built-in accidental death benefit feature.

The difference between the two coverage plans is as follows:

(A Head-to-Head Comparison of Assumption Life Non-Medical Plans continued...)

Non-Medical Life Insurance: Should I Buy Direct or Through a Broker?

May 10th, 2010
Captain Jack by Petras Gagilas
Non-medical categories? Photo by Petras Gagilas

Non-medical Life Insurance can be divided into two categories.

1) Guaranteed Issue coverage where there are no health questions and no medical tests and

2) Simplified Issue coverage where there are generally three to twelve health questions and no medical tests.


Most Non-medical life insurance plans sold directly through insurance carriers like Manulife and BMO are guaranteed issue plans.

On the plus side, your acceptance is guaranteed, but the downsides are, the face amounts are generally much lower, the premiums are higher and the coverage usually is sold on a deferred basis. This means that if the insured passes away from a non-accidental death in the first two years, the death benefit is limited to a return of premium. In some instances though, it's a return of premium without interest.

(Non-Medical Life Insurance: Should I Buy Direct or Through a Broker? continued...) | 6 comments

Wawanesa Life Non-Participating Whole Life Policy

May 6th, 2010
logo WawanesaLife
 

Wawanesa Life Non-Participating Whole Life Policy is actually a Term 100 policy, with a quick pay option.

Traditionally, Term 100 policies offer premiums payable for life. The Wawanesa plan offers a traditional life pay Term 100 plan, but also offers two quick pay policies. A 15-Pay plan, where the insured is covered for life and the policy is paid up at the end of 15 years, and a 20-Pay policy where the insured is covered for life and the plan is paid up at the end of 20 years.

The minimum face amount on the policy is $10,000 Joint life and multi-life policies are not available. The plan does offer guaranteed cash values after 10 years on his 15-Pay and 20-Pay plans.

There's an automatic premium loan feature on the plan, which allows the insured to take on a loan on up to 93% of the cash surrender value.

For more details please contact us at 1.866.899.4849 visit our Whole Life Quote Page

3173 Bathurst Street, Toronto, ON M6A 2B1
Head Office: 2900 John Street Suite #302 Markham, L3R 5G3
Office 1-866-899-4849, 905.248.4849 Fax 905.300.4848


© LSM Insurance Services Ltd. 1998-2014 | All Materials