Women’s vs. Men’s Term Life Insurance in Canada

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.

Term life insurance provides affordable insurance premiums for a stated term, such as 10 years, 15 years, 20 years or 30 years. The longer the term, the higher the initial premium.

Most term policies are guaranteed renewable after the initial term at a much higher premium and most term policies are convertible to a Permanent Level-rate policy without a medical. Keep in mind, the premiums are based on the insured’s age at the time of coversion.

Women will pay a much lower rate than men for Term Life insurance.

The following is a snapshot of the pricing on Women's Term Life insurance versus Men's Term Life insurance on a 30-year term:

Whole Life Insurance for Women

Women pay a much lower premium for Whole Life policies than men. The following looks at the top three carriers for $250,000 worth of Whole Life 20-Pay coverage, i.e. the insured is covered for life and the policy is paid-up after 20 policy years.

Manulife’s Cover Me Guaranteed Issue Life Insurance Pricing

Manulife's Cover Me policy is available with no medical tests or health questions. The applicant's acceptance is guaranteed. The policy is available in four face amount increments; $5,000, $10,000, $15,000 and $20,000. The death benefit is limited, for non-accidental death during the first to policy years, to a return-of-premium plus interest.

Critical Illness Policies for Women in Canada

Critical Illness insurance pays a lump sum if the insured is diagnosed with a critical illness, such as cancer. The number of illnesses considered critical can vary from carrier to carrier. The type of plan (Term or Permanent) along with plan riders -- such as a return-of-premium if the insured stays healthy -- can also influence the plan premium.

The following is a snapshot of Level Term to Age 75 Critical Illness coverage at $250,000. Level Term to Age 75 means that the insured will have a level premium to age 75, which is guaranteed never to increase. There is no return-of-premium. 

Males pay more than females for equivalent coverage, but the difference is not as pronounced as it is on Women’s life insurance policies.

(Critical Illness Policies for Women in Canada continued...)

Canada Life Dividend Scale Announcement for Policy holders in 2011

Canada Life has just announced that the dividend scale interest rate for 2011 will continue to be 7.36 per cent. The dividend scale interest rate is used to calculate the investment component of participating policyowner dividends. Participating policyowner dividends are estimated to be valued at $125 million in 2011, compared with the estimated distribution of $116 million in 2010.  

I'm sure you're wondering how this is possible given that fixed-income investment returns have continued to remain low.

Well, as part of the ongoing management of the dividend scale, the investment experience was reviewed for the 12-month period ending June 30, 2010. There continues to be downward pressure on the dividend scale interest rate due primarily to the low interest rate environment. There are a number of factors that have helped to offset the lower fixed-income returns, including the following:

CIBC: Five Year Term Life Insurance Policy

CIBC's five year term life insurance policy is underwritten by Manulife Financial. The policy is available in increments of $50,000, $75,000 or $100,000 and the premiums are fixed for the first five policy years.

The plan is available to applicants who are 18 to 65 and also offers a built-in living benefit of up to $50,000. and a cancer benefit of up to $10,000, as well as the waiver of premium benefit. A couple of caveats with the policy include the fact that it is not convertible to a permanent plan.

In terms of pricing, a 40-year-old, male non-smoker would pay the following premiums:

$50,000.00 – 5-year term is $11.57 /month

$75,000.00 – 5-year term is $15.35 / month

$100,000.00 – 5-year term is $19.14 / month.

For more details on how CIBC's term life insurance policy compares with other term life policies in Canada, please contact us at 1-866-899-4849, or visit our Term Life Insurance Instant Quote Page.

Costco Term Life Insurance Policy

Costco members between the ages of 18 and 70 can apply for term life insurance for themselves or their spouses for up to $500,000. The policies are priced in $25,000 increments and the minimum face amount is $50,000.

Additional policy features.

1. The insured can get up to $100,000 if they are diagnosed with a terminal illness. (The policy must be in effect for at least two years for this feature to kick-in)

2. Discounts are given to non-smokers, but preferred rates are not available.

3. There is a conversion option under the policy. The insured can convert to a permanent plan without a medical any time before the insured's 76th birthday.

4. The premiums are fixed for the first five policy years.

However, the premiums for the policy do not compare favourably with other insurance carriers – see examples below at $250,000:

RBC Insurance’s Universal Life 3.5% Minimum Guaranteed Return

RBC Insurance's Universal Life plan has a 10-year guaranteed investment option with a guaranteed rate of return of 3.5%.

The 3.5% guaranteed minimum rate of return is now guaranteed for the life of the policy to any policyholder who select the 10-year guaranteed investment option. The 3.5% guaranteed rate-of-return is available on their Universal Life plan with and without a bonus interest option. Should interest rates increase in the future, the policy holder would have the opportunity to get a higher rate-of-return.

For more details on RBC's Universal Life plan, or other Universal Life plans in Canada, please contact us at 1-866-899-4849 or visit our Universal Life Insurance Quote Page.

Empire Life’s BeneFitPlus Employee Benefit Plan

Empire Life offers an employee benefit product, which is designed for Canadian businesses with between 20 to 50 employees. The plan is called “BeneFitPlus” and offers the following features:

1. Employee basic life insurance.

2. Employee accidental death and dismemberment insurance.

3. Employee optional life and accidental death and dismemberment.

4. Dependent life insurance.

5. Extended health benefit for employee and dependents.

6. Spousal optional life and accidental death and dismemberment.

7. Employee short-term disability.

8. Employee long-term disability coverage

9. Dental benefits for employees and dependents.

Canada Life Term 10 to Term 20: Special Conversion Offer

Canada Life is announcing a special conversion offer to Term 10 policy holders between November 1, 2010 and October 31, 2011. The insured must be on the fifth anniversary of their policy and either have their Term 10 coverage as a standalone policy, or as the rider.

Insured who fall into the rider category, and are less than age 65 during that period, can convert their Term 10 coverage to a Term 20 policy without evidence of insurability. This can result in the insured having a substantial savings over their life insurance premiums in a 20-year period.

For more details on Canada Life's term policy, or on our other term policies in Canada, please contact us at 1-866-899-4849 or visit our Term Life Insurance Instant Quote Page.