April 30th, 2008
Wawanesa Life, a major property and casualty carrier, offers Term 10 and Term 20 insurance, coined LifeStyle Term. The Term 10 plan is available for applicants between the ages of 18 to 70, and the Term 20 plan is available for applicants between 18 to 60 years old. Both plans are renewable and convertible, and are available on an individual, multi-life or first-to-die basis.
The plans are available with a disability waiver, accidental death benefit, and children’s term rider. The children’s rider is available in amounts of $2,000 to $20,000, and the cost is $5 per year per thousand dollars of insurance regardless of the number of children. One quirk in these plans is that children’s term riders are not available on Joint Life policies.
Both plans also have preferred rates on face amounts greater than $250,000, and are convertible without a medical to age 70 into permanent policies.
Below are examples of Wawanesa Life’s Term 10 rates at $250,000 of coverage:
Insured..............Standard Rates.....Preferred Rates
35-yr male N/S:....$19.13/month….......$15.08/month
45-yr male N/S:....$33.08/month….......$25.65/month
55-yr male N/S:....$72.45/month….......$55.35/month
April 29th, 2008
AXA Canada offers two universal life plans—Universal Life Protection and Universal Life Investment. The former is available on face amounts from $25,000 to $499,999, and the latter is available on amounts of $500,000 and higher.
Universal Life Protection is geared toward younger families; there are no surrender fees, but withdrawals must be a minimum of $500. Universal Life Investment is geared toward business owners and applicants over 50 years of age. This plan has two additional costs of insurance options, but also has surrender penalties on all withdrawals during the first nine policy years.
Both plans offer four guaranteed investment accounts, nine index investment accounts and 12 managed investment accounts. Both also have an Extreme Disability feature built into the policy. This feature (which is also available on AXA’s Term 10 and Term 20 plans) pays out an advance of 50% of the death benefit (up to $250,000) if the insured has an extreme disability.
Both plans also include three assistance benefits free of charge: identity theft, legal assistance, and lifestyle service. Applicants in good health with very good family health history can also qualify for preferred rates.
There are two significant drawbacks: the plans are poorly priced at many age groups, and they do not have a level cost of insurance option. This means that the cost of insurance on these plans will increase significantly in the later policy years.
April 28th, 2008
Canada Life offers two participating whole life policies: Estate Achiever, which aims to maximize the insured’s estate, and Wealth Achiever, which focuses on cash accumulation.
Unlike non-participating whole life policies, participating whole life policies pay a dividend based on the profits of the company. They offer guaranteed premiums and lifetime protection, though the dividends are not guaranteed.
Both of Canada Life’s participating whole life policies have five dividend options: paid-up additions, premium reduction, dividend on deposit, premium reduction, and enhanced coverage.
The plan is available on single life, joint first-to-die, and joint last-to-die bases. The last-to-die policy, which is used for estate-planning purposes, pays a tax-free benefit on the death of the second spouse. The policy owner can also add a disability waiver of premium benefit or an accidental death benefit.
A 35-year-old male non smoker can take out $100,000 of Canada Life’s Wealth Achiever Life plan for a premium of $182.61 a month. Based on the current dividend rates, which are not guaranteed, the plan has a cash value of $119,915 and a death benefit of $260,514 at age 65.
April 24th, 2008
AIG’s whole life plan is referred to as 20 Pay Life. It is a non-participating whole life policy, as it does not participate in the profits of the company as does a participating whole life policy.
AIG’s 20 Pay life is more expensive than competing non-participating policies, but it has features unavailable in rival plans. The main benefit of 20 Pay Life is that it starts building cash value and offers reduced paid-up insurance in the eleventh policy year. Most competing plans only offer cash values and paid-up values after the twentieth policy year. The plan also offers a host of riders, including term riders on the primary insured or a spouse, a children’s term rider, accidental death coverage, and a waiver of premium in the event of disability.
A 35-year-old male non smoker can take out $100,000 of AIG’s non-participating whole life 20 Pay Life plan for a premium of $107.67 a month. The cash value is $8,407 after 10 years and $22,420 after 20 years.
April 23rd, 2008
Low-income British Columbians can now receive some added pain relief as the B.C. government became the first in Canada to include registered acupuncturists under its Medical Services Plan premium-assistance program.
About 963,500 British Columbians living in households earning a combined $28,000 or less a year - including welfare recipients, students, the disabled, and seniors - are covered by the supplementary benefit.
The government estimates about two per cent of that population will initially use the treatment at a cost to the taxpayer, based on an average of five visits, of about $2.2 million, the Times Colonist wrote.
You can read the full story here.
April 22nd, 2008
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.
Unity Life of Canada, a Foresters Company, expands its product portfolio with the addition of Forester Passport Universal Life. This universal life product complements Unity Life's competitive term and solid permanent products and is available to Canadians nationwide through its extensive brokerage distribution network.
"Forester Passport Universal Life is designed specifically to meet the needs of the middle market," said Rob Baboth, Unity Life's Vice President, Sales and Marketing.
April 21st, 2008
Desjardins Financial Security is the fourth largest life insurance company in Canada in terms of policies written; they are the largest in Quebec. They employ both a captive and an independent sales force.
Their Term 10 and Term 20 plans are offered with face amounts as low as $50,000, and the plans have a host of available riders, including disability insurance, accidental death or dismemberment coverage, accidental fracture coverage, coverage for the insured person’s spouse or children, guaranteed insurability, and a premium waiver in the event of disability.
Both plans are convertible without a medical to a permanent policy (i.e., a plan where the rates are level and the insured has lifetime protection).
Individuals who are in good health and have very good family health history can qualify for preferred rates; better yet, those in excellent health can get super preferred rates.
Below are examples of Desjardins’ Term 10 rates at $250,000 of coverage:
Insured.............Standard Rates...Preferred Rates
35-yr male N/S:...$20.25/month…......$16.43/month
45-yr male N/S:...$34.65/month…......$27.00/month
55-yr male N/S:...$76.05/month…......$58.50/month
April 18th, 2008
RBC Insurance, part of the RBC Financial Group, is a newcomer to the Canadian marketplace. Their Term 10 and Term 20 plans are renewable and convertible to any of their permanent policies. Both plans have a $100,000 minimum face amount, and the Term 10 plan is available to applicants aged 18 to 70 while the Term 20 plan is available to applicants aged 18 to 60. Both plans are renewable to age 80.
RBC Insurance offers preferred rates for those who qualify on amounts over $250,000 -- non-smokers qualifying for optimum rates can get rates 25% lower than standard rates.
RBC Insurance term policies offer the following built-in features: the insured can convert to permanent insurance without medical evidence prior to age 71 (most companies only offer this feature to age 65); their Term 10 policy has an exchange option which allows the insured to exchange a Term 10 policy for a Term 20 policy without providing medical evidence. You can elect this option at any time prior to either the 5th policy anniversary or the policy anniversary nearest the policyholder's 60th birthday, whichever comes first.
RBC Insurance's term policies also have the following riders/benefits available as add-ons: accidental death benefit, guaranteed issue rider, waiver of premium rider, and children’s life insurance rider.
Below are examples of RBC Insurance’s Term 10 rates at $250,000 of coverage:
Insured.............Standard Rates.....Preferred Rates
35-yr male N/S:...$18.90/month..........$13.95/month
45-yr male N/S:...$31.95/month..........$25.20/month
55-yr male N/S:...$73.80/month..........$54.45/month
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April 17th, 2008
Empire Life’s Term 10 is available to applicants aged 18 to 75; their Term 20 plans are available for those 18 to 65. The plans are available on an individual or joint life basis, and are guaranteed renewable to age 100—Empire Life is one of the few insurance companies to offer this renewable feature.
The plans also allow for a critical illness rider, accidental death benefit, children’s term rider, and children’s critical illness rider. The children’s critical illness rider covers all children over 10 months, including legally adopted and stepchildren, all for one monthly premium. This is an exceptional value for large families. This benefit covers 15 illnesses and up to $50,000 of coverage. The cost of this coverage is $10.80/month per $10,000 of coverage.
The term plans are available with face amounts as low as $25,000—this is a big plus for older applicants with a small temporary insurance need such as for a mortgage or line of credit.
On the downside, Empire Life does not offer preferred rates—applicants in very good health and with good family health history may be paying more than they would with other carriers.
Below are examples of Empire Life’s Term 10 rates at $250,000 of coverage:
Insured............Standard Rates:
35-yr male N/S:...$19.58/month
45-yr male N/S:...$35.33/month
55-yr male N/S:...$77.63/month
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April 16th, 2008
Standard Life offers a Term 10 and Term 20 insurance plan. The Term 10 plan is available to individuals aged 18 to 70, and the Term 20 plan is available to individuals aged 18 to 65. Both plans are renewable to age 85 and they are convertible up to age 65. The plans also allow you to add a wide selection of riders, including 10-year or 20-year term life riders, critical illness insurance rider, children’s life rider, and children’s enhanced protection rider, guaranteed insurability benefit, accidental death benefit, and a waiver of premium on disability.
Their term insurance plans are also available on an individual or joint first-to-die basis. Individuals who are in good health and have a very good family health history can qualify for preferred rates; better yet, those in excellent health can get a super preferred rate. On the downside, plans are not available at face amounts under $100,000; this can be problematic for older applicants on a tight budget.
Below are examples of Standard Life’s Term 10 rates at $250,000 of coverage:
Insured.............Standard Rates......Preferred Rates
35-yr male N/S:...$20.70/month….......$16.43/month
45-yr male N/S:...$38.48/month….......$28.58/month
55-yr male N/S:...$83.93/month….......$61.20/month
April 15th, 2008
Transamerica Life offers a Term 10 and Term 20 plan. Their Term 10 plan is available to individuals from 0 to 70 of age, and their Term 20 plan is available to individuals ages 0 to 60. Both plans are available in face amounts from $50,000 to $10,000,000 –- amounts in excess of $10,000,000 are available on a special case basis. Both plans are also renewable to 80 and convertible up to age 65. Available riders include: children’s life rider, accidental death and dismemberment benefit, and a waiver of premium on disability.
Transamerica’s Term insurance plans are also available on an individual, multi-life or joint first-to-die basis. Individuals who are in good health and have a very good family health history can qualify for preferred rates; or better yet, those in excellent health can get the elite non-smoker rate.
Transamerica also offers Turbo Term 10 and Term 20 policies. These plans are issued very quickly and without a medical test. But the rates are higher, and the insured still has to answer all the basic health questions. The Turbo Term policies would not be available to individuals with manageable health issues—even if under control—such as diabetes.
Below are examples of Transamerica’s Term 10 rates at $250,000 of coverage:
Insured.............Standard Rates.....Preferred Rates
35-yr male N/S:...$19.80/month…......$15.53/month
45-yr male N/S:...$34.65/month…......$27.00/month
55-yr male N/S:...$76.05/month…......$56.03/month
April 14th, 2008
Equitable Life offers a very competitively priced participating whole life policy. Unlike non-participating whole life policies, participating whole life policies pay a dividend based on the profits of the company. They offer guaranteed premiums and lifetime protection, though the dividends are not guaranteed.
Equitable Life’s participating whole life policy has six dividend options: paid-up additions, premium reduction, dividend on deposit, premium reduction or paid in cash, enhanced protection, and purchase units in a common stock fund.
The last option, to purchase units in a common stock fund, is not available in many traditional whole life policies and is an attractive feature. It allows the policy owner to combine the guarantees of whole life coverage with the growth opportunities of equity-based investments.
The plan is available on Life Pay or 20 Pay bases, and you can add Term 10, Term 20, or Spousal Term riders.
A 35-year-old male non smoker can take out $100,000 of an Equitable Life participating whole life plan for a premium of $163.00 a month. Based on the current dividend rates, which are not guaranteed, the plan has a cash value of $123,018 and a death benefit of $260,518 at age 65.
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April 11th, 2008
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.
The Co-operators are a major supplier of property and casualty insurance in Canada. They also market term 10 and term 25 life insurance plans through their captive sales force.
Both term plans are offered on an individual or joint life basis. Their term 10 is not very well priced at most age groups; however, they are one of the few insurance
Only three insurance companies in Canada offer a 25-year term: Primerica; Unity Life and Co-operators. Twenty-five year term coverage—offering level premiums for the first 25 policy years—can be a good fit for young families wanting to cover a mortgage. On the downside, the lack of competition makes it a less competitively priced plan.
For example, a 40-year-old male non-smoker can get $250,000 standard rate Term 20 coverage with Canada Life for $36.45 per month. The same amount of coverage would cost $44.33 per month on the Co-operators’ Term 25 plan.
Below are examples of Co-operators Term 10 rates at $250,000 of coverage:
Insured............Standard Rates:
35-yr male N/S:...$20.25/month
45-yr male N/S:...$34.65/month
55-yr male N/S:...$77.40/month
April 10th, 2008
Industrial Alliance Pacific and its parent company Industrial Alliance Insurance and Financial Services Inc. offer a universal life policy branded “Genesis.” Genesis is available with face amounts as low as $25,000 (or $300 per year annual premium) and issue ages from birth to age 85.
This plan allows you to choose between multiple "Cost of Insurance" (COI) options, including an increasing COI which allows the applicant to focus on cash accumulation in the early policy years. The level COI plan guarantees your rates are fixed for life, and the quick pay COI option allows for the COI charges to end after 10, 15 or 20 years. Their universal plan has a both guaranteed and market-based investment options.
Genesis is available with preferred rates for those applicants in very good health and good family health history. But the savings are much less pronounced than on Industrial Alliance’s term plans. The Genesis plan also has a surrender charge on withdraws in the first seven policy years.
Their rates are competitive at most age levels. As an example, a 45-year-old male non-smoker who applies for $250,000 of universal life level cost coverage would pay a minimum premium (i.e., the premium to keep the plan in force) of $180.42 per month.
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April 9th, 2008
Assumption Life’s Universal Life program (referred to as Odyssey) is available to applicants aged 15 to 80—the older issue limit is nice a feature. The plan does share many of the advantages available on other universal life policies, such as flexible premiums, multiple cost of insurance, and death benefit options.
The plan holds a very limited share of Canada’s universal life market share, but it is highly competitive in the 30 to 40 age range. They are also one of the only Canadian companies to offer a guaranteed cash value in their Universal Life plan. Many of their investment accounts have performed well, but their selection is limited when compared with AIG and Manulife’s Universal Life programs.
April 8th, 2008
Desjardins Financial Security’s universal life plan has flexible premiums, and the investment accounts grow on a tax-sheltered basis; depending on the investment vehicle, funds can be withdrawn at any time. The investment account is paid on top of the face amount tax-free, and the funds within the investment account can be used as an emergency fund, to supplement the applicant’s retirement needs, or to offset future premiums.
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Universal at Most Age Levels continued...) |
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April 7th, 2008
AIG’s Critical Illness program provides competitively priced protection with a variety of plan options. The coverage pays out a tax-free lump sum payout upon diagnosis of a critical illness. The coverage is backed by AIG Life Insurance Company of Canada.
This plan does more than pay out money in a time of crisis—it provides additional knowledge to assist you in understanding the illness and treatment options. Living benefit clients get free access to AIG’s Best Doctors service, which provides a customized search of a global database of over 50,000 specialists who are best qualified to deal with the client’s illness.
While receiving treatment, Best Doctors offers assistance with medical appointments, pre-admission arrangements and discounts, and reservations and accommodations for you and your family. AIG takes this service a step further, providing your immediate and extended family full access as well.
Let’s look at an example of how AIG’s Critical Illness coverage combined with the Best Doctors service provides a unique value. Lisa, a 35-year-old stay-at-home mother of two decides to take out a $100,000 Critical Illness Term-to-75 through AIG. She adds the return of premium on death on surrender feature; her monthly premium is $100.80. Lisa stays at home, so she would not qualify for traditional disability insurance—if she develops a critical illness, she would receive access to the best doctors in the world, and tax-free money needed to help pay for the best medical treatment. If Lisa stays healthy, she gets back all her premiums at age 75, and if she dies from an unrelated illness or accident, her estate receives all her paid premiums.
Let’s assume Lisa’s mother-in-law, who is financially secure, has a stroke—Lisa would be able to provide her with more than just emotional support—Lisa can ensure she is treated by world-class specialists and receive cutting-edge medical treatments to maximize her chances of a successful recovery. One policy can have a tangible effect on the lives of multiple generations.
April 4th, 2008
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.
On April 3, Foresters and Unity Life of Canada announced completion of the agreement under which Unity Life becomes a wholly owned subsidiary of Foresters and will represent Foresters in the Canadian market as "Unity Life of Canada, a Foresters Company."
The announcement follows the April 2nd completion of the sponsored demutualization of Unity Life, which recently received approval from eligible Unity Life policyholders and Canadian regulatory authorities, and a share transaction between the two parties. The $50 million in proceeds from the share transaction will be paid to eligible policyholders in exchange for their voting control and their share of the value of Unity Life.
Commencing in mid-April, Unity Life will make cash payments to up to 15,000 eligible Unity Life policyholders. The average payment to eligible policyholders will be $3,300, with the exact amount based on factors such as the size, policy cash value and duration of their policies. The insurance coverage, policy values, premiums and the right to receive experience dividends of Unity Life policyholders will be unaffected by the sponsored demutualization.
Unity Life customers will have access to the product lines of both Foresters and Unity Life. New customers who purchase eligible individual life insurance products from Unity Life will become full voting members of Foresters and enjoy all Foresters member entitlements and benefits. Additionally, Foresters will take on some Unity Life corporate activities that are presently outsourced.
For more information on what the demutualization means, click here.
April 3rd, 2008
Manulife Financial has very rich history and is one of Canada’s most reputable life insurance companies. Their Term 10 and Term 20 plans are renewable and convertible to any of their permanent policies. Both plans have a $100,000 minimum face amount, and the Term 10 plan is available to applicants aged 18 to 70 while the Term 20 plan is available to applicants aged 18 to 60.
Manulife offers preferred rates on amounts over $250,000 for those who qualify, on both smoker and non-smoker policies. The plans also have the following riders/benefits available as add-ons: accidental death benefit, guaranteed issue rider, waiver of premium rider, and children’s life insurance rider. The children’s life rider covers each insured child for $10,000 at a cost of $2.04 per month. The plan allows each child to convert up to 25 times the coverage, or $250,000, without a medical. This is a terrific option, especially for children with family health issues.
On the downside, the $100,000 minimum face amount makes it problematic for older applicants on a tight budget to cover a temporary insurance need like a mortgage or business loan.
Below are examples of Manulife’s Term 10 rates at $250,000 of coverage:
Insured...............Standard Rates......Preferred Rates
35-yr male N/S:....$19.74/month…........$16.16/month
45-yr male N/S:....$34.85/month…........$27.97/month
55-yr male N/S:....$75.37/month…........$58.83/month
April 2nd, 2008
Wawanesa Life’s Universal Life plan is referred to as Quest. The basic insurance plan provides level coverage for life. There are also two guaranteed Cost of Insurance (COI) charge options available: level monthly charges for life, and an increasing COI option. The increasing option has level monthly COI charges to age 65 or for 15 years, whichever comes first; then the COI charges increase and remain level thereafter.
The investment options on the Quest plan are very limited compared to other carriers. AIG, for example, has over 400 investment accounts available, while Wawanesa has six investment accounts: a daily interest account, fixed interest account, Canadian equity index account, U.S. equity index account, International equity index account and a Canadian bond index account. The policy has a built-in guaranteed investment bonus of 1% of the plan’s accumulation value from years three to 24; from years 25 and beyond this bonus jumps to 1.25% of the plan’s accumulated value.
Preferred rates are not available on the Quest plan. As an example of their pricing, a 45-year-old male non-smoker who applies for $250,000 of Universal life level cost coverage will pay a minimum premium (i.e., the premium to keep the plan in force) of $188.46 a month.
April 1st, 2008
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.
The credit crunch in the United States - and to a lesser extent Canada - has been widely publicized in recent months. It’s had a huge impact on real estate and equity markets. But the explosion of long term loans and lines of credit is also having a big impact on the life insurance industry.
Traditionally, mortgages were set up with a 25 year amortization period and by making bi-weekly or weekly payments many consumers were able to rid themselves of the largest debt in less than 20 years. However, as real estate`s vales soared in the 1990’s and the new millennium, many consumers started taking on an increasing amount of debt and extending their mortgage amortization to 30 or 40 years.
This trend has had an impact on the type of insurance policy consumers are using to cover the mortgage. Mortgage holders who wisely opt of the bank’s mortgage insurance plan are left with the dilemma of a long term life insurance need and potentially limited finances. In years past many consumers opted for a 10 or 20 year Term policy to cover their mortgage – the problem with these policies is the cost escalates dramatically upon renewal. Case and point a 40 year male non smoker would pay $37.80 a month for a $250,000 Term 20 policy with Transamerica Life but the renewal premium after 20 years is $517.95 a month. Now the insured could re-apply for a new policy in 20 years to lower his rate but if his health has changed this may not be a viable option.
The solution is to opt for a Permanent policy i.e. one where the cost is level for life or a Term 30 policy. Permanent policies can be a terrific solution in many instances but the cost can be prohibitive for families straddled with high debt. That’s where a Term 30 policy can come into play. The premiums on these policies are guaranteed for 30 years and the cost is substantially less than a permanent policy. These policies are extremely popular in the United States but in Canada there are a limited number of players offering these policies. Transamerica Life is the newest entrant and their policies offer some unique paid up features not available in more conventional Term 30 policies.
Some of the other insurers offering Term 30 policies in Canada include Assumption Life, BMO Life, Primerica Life Canada and Unity Life. Industrial Alliance also introduced a very unique Pick-a-Term policy that allows the insured to pick the length of their term from ten to thirty years.
The one caveat with a Term 30 policy is that policyholder can potentially have put in thousands over the 30 years and if they outlive their term they are pretty much out of luck. Case and point that same 40 year old male non smoker takes out $250,000 of Term 30 coverage with Unity Life – the monthly premium is $78.30 a month. His contribution is $28,188 over 30 years – and if he wants to renew it at age 70 the monthly premium spirals to $945.23 a month.
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