Primerica Term Life Sales Decrease in 2009

dollar sign by Colin

As reported in the December 2009 issue of the Insurance Journal, sales of
Primerica term life products have been decreasing.

The company's recent prospectus filed on November 5, 2009 states that
Primerica sold more than 115,000 policies in the six months ending June 30,
2009, compared with more than 121,000 policies in the first six months of
2008.

The prospectus also indicates a slight decline in the average size of new
policies along, with a slightly higher lapse rate. (The rate of which people
cancel their policies)

You can get a free term life insurance quote at our Instant Term Insurance Quote Page, or feel free to call us at 1-866-899-4840.
 

Top 10 Group Insurance Companies in Canada

As stated in the November/December issue of the Insurance Journal, the Fraser Group recently ran down the list of the Top 10 Group Insurance Companies in Canada. The top 10 companies combined comprise 95% of the market.

1. Great West Life 22.3%*
2. Sun Life 21.6%.
3. Manulife 21%.
4. BlueCross 10.5%.
5. Desjardin 5.9%.
6. SSQ Financial 3.9%.
7. Green Shield 3.6%.
8. Industrial Alliance Group 2.9%.
9. Standard Life 2.2%.
10. Co-Operators 1.2%.

* Great West Life results include Canada Life and London Life.

For a free, online group insurance quote, please visit our Group Benefits Quote Page, or contact us at 1-866-899-4849

Group Insurance Premiums on the Rise

As reported in the November/December issue of the Insurance Journal, group insurance premiums are increasing in Canada.

Insurers had profits of 29.1 million from their Canadian group insurance activities in 2008, according to the Frazier Group's Group Universe Report 2008. Insurers also saw an increase of 7% in revenue coming from group insurance activities over 2007.

The 2009 third quarter results, released by insurers very recently, showed a sustained level of sales in the group sector.

For more details, please feel free to contact us at 1-866-899-4849. You can also get a group insurance quote online by visiting our Group Insurance Quote Page.

Life Insurance: Underwriting and Bariatric Surgery

You can still get life insurance
once you have bariatric surgery.
photo by Colin Rose

We all know that North America is the heaviest continent in the world and for those who've tried dieting and exercise countless times with no success, often the only option they see for themselves is Bariatric Surgery. Even celebrities have gone under the knife, people like Carnie Wilson, Randy Jackson and Sharon Osbourne -- just to name a few.

However, even with such an invasive surgical procedure, you can still get life insurance. It's very important to be aware of the following underwriting guidelines because insurance companies will be basing their verdict on the factors below:

(Life Insurance: Underwriting and Bariatric Surgery continued...)

Five Long-Term Care Insurance Myths

Man by Michelle Tribe

While the number of long-term care policies being sold in Canada is rising, the number of Canadians who are properly insured is still extremely low. In some instances, its due to misunderstanding and myth. The following are five myths surrounding Long Term Care Insurance:

BMO Guaranteed Life Plus Pricing

BMO Insurance's Guaranteed Life Plus is only available through BMO's call centre and not through its broker network. The plus with the plan is there are no health questions, but the plan does not pack a lot of insurance for your premiums dollar.

The death benefit on non-accidental deaths is also limited to a return-of-premium in the first two policy years.

The plan is available in five pricing increments and the table below lists the price at age groups spanning 40 to 75 for both males and females. Smokers and non-smokers pay the same rates.

Buyer Beware: Online Life Insurance Websites and Preferred Rates

You're bound to be frustrated
by online insurance providers.
Photo by Jimmy McDonald

Numerous websites offer so-called preferred rates when quoting online life insurance rates. Many of these websites use preferred rates as their default premium in their instant quote calculators, even though less than 30% of all applicants qualify for these preferred rates.

Numerous variables can disqualify individuals from online carriers' preferred rates
. These variables include:

December Financial System Review

photo by Garry Knight

This significant report from the Bank of Canada is released biannually, and covers the most important aspects of the domestic financial markets. The main focus is to discuss the possible risks which may affect the Canadian financial system.

In the last three issues (December 2008, June 2009, and the latest, December 2009) the bank has identified five key sources of risk, and has followed their development. From the current report, it is apparent that the overall risk has declined since June. However, potential threats have not disappeared.

(December Financial System Review continued...)

Canadian Tire Life Insurance: Conveinence Comes at a Price

Canadian Tire is better for home
hardware than life insurance.
photo by Shirley Buxton

Canadian Tire started offering term life insurance, underwritten by Canada Life, in 2005. In March of 2009, they tweaked the details of the plan and began rolling out a new marketing campaign, complete with TV commercials.

On the plus side the plan is available with no medical tests but does have a series of health questions. The convenience of not having to meet with a nurse comes at a steep price.

Canadian Tire's term life plan is nearly double the cost of competing Term plans. As illustrated below, Canadian Tire's Term 5 Life Insurance Plan is twice as much as the competing term 10 plans. With competitors, you can get double the term for half the price.

Moreover, Canadian Tire premiums are only level for five years and the plan is not convertible without a medical to a permanent plan. The following is a list of rates showing how Canadian Tire Term Life Insurance stacks up with the competition:

(Canadian Tire Life Insurance: Conveinence Comes at a Price continued...)

TD Life Insurance Leaves Something to be Desired

Find out TD Term Life plans
fall short before it’s too late.
photo by Craig Cloutier

TD Term life insurance has been offering life insurance for approximately 10 years Now their offering plans through their TD Life Insurance division and Transamerica Life.

The TD life plans are available on a Term 10 basis. The Transamerica policies are the same policies offered by Transamerica independent brokers, but TD agents are unfortunately limited to only selling Transamerica’s Term 10 and Term 20 policies. The application process breaks down like this:

(TD Life Insurance Leaves Something to be Desired continued...)

Term Life: Unity Life Updates Risk Structure

Unity Life has updated their Preferred Term risk structure -- effective immediately.

They've gone from six risk classes down to four, making Class D their new Standard rate.

Also, Risk Classes E and F are now terminated, since these are borderline rates and only need to be applied at issue on a case by case basis. This means they will no longer be available for quoting, but Unity Life maintains that over 80% of their non smoker applicants are approved for preferred classes A, B and C.

To see what other term life companies across Canada are offering, visit our Term Life Instant Quote Page.

Canada’s Best Universal Life Policies

What company has the best
Universal life offering in Canada?
photo by Frank Steele

"You wanted the best, you got the best" is not just a line that works for rock 'n' roll, but Universal Life insurance as well. The following is a list of Canada's top Universal Life policies for a 40-year-old female, 40-year-old male non-smoker, and a 40-year-old female non-smoker at coverage amounts of $250,000.00, with a level cost of insurance option.

Universal life policies are available with either an increasing cost of insurance option, or a level cost option. The level cost option guarantees the cost of insurance will remained fixed for life.

Key advantages for each company:

(Canada’s Best Universal Life Policies continued...)

Whole Life Insurance for Children: A detailed look at Canadian Insurance Companies

Insure your kids early,
set them up for life.
Photograph by Lars Plougmann

Whole Life insurance can provide a valuable option for individuals looking for lifetime protection, fixed premiums and a tax sheltered savings component.

Participating Whole Life policies allow the insured to participate in the profits of the insurance company. By taking out a policy on a child, the insurance can benefit in the following three ways:

(Whole Life Insurance for Children: A detailed look at Canadian Insurance Companies continued...)

Whole Life Insurance Policies in Canada: A Comparative Analysis

Whole life insurance options
can be overwhelming
—we break it down for you.
by David Goehring

Whole Life insurance policies can be broken down into two types:

Non-participating Fully guaranteed contracts and the plans do not participate in the companies profits.

Participating Whole Life Policies Offer policy guarantees, but in addition, allow the applicant to participate in the profits of the insurance company.

Whole Life policies They've gained a resurgence in popularity in Canada over recent years, as consumers are becoming more concerned with market volatility.

(Whole Life Insurance Policies in Canada: A Comparative Analysis continued...)

Travel Insurance: Points to Remember

Before you take off,
protect your own interests.
photo by Sara Petagna

As the holiday season approaches, you and your family may be looking to get out of dodge. If you are traveling in the coming weeks, there's some regulations, rules tricks and tips you may want to be aware of.

(Travel Insurance: Points to Remember continued...)

One Third of Canadians Feel Underinsured

Parents worry about their families.
photo by Kipp Jones

68% of Canadians polled by Ipsos Reid said they feel like they have enough life insurance for their family’s needs. That leaves 32% of the respondents in doubts about their policies.

Canadians Enjoy Greater Benefit Choices

Canadian employers provide
better benefit plans than
workplaces in other countries.
photo by Lee Chisholm

A recent survey has found Canadian employees have more choices through their benefit plans than employees working  around the world.

Mercer’s survey of 1,752 employers in 47 countries found that just 20% of employers globally provide at least some choice in the benefits they offer, while 7% have comprehensive flexible benefits programs.

(Canadians Enjoy Greater Benefit Choices continued...)

The Future Performance of the Canadian Economy

Go ahead for the future.
photo by Wlodi

The Canadian economy has been considered well prepared for this crisis. A sound financial system, fast housing market recovery, solid social and health care networks, abundant natural resources – all these factors were supposed to make recession short and not very painful. However, the economic forecasts for the future are blurry.

(The Future Performance of the Canadian Economy continued...)

Canada Protection Plan: Non-medical Whole Life Policies

Canada Protection Plan Whole Life policies are underwritten by Unity Life. Their whole life policies are divided into three categories.

USA Today takes Travel Insurance Questions from Readers

USA Today answers your
travel insurance questions
before the family vacation.
Photo by Lina

With the holiday travel season heating up and flu season at its apex with H1N1, USA Today recognized that perfect storm and asked its readers to submit all of their travel insurance confusions and concerns. At LSM, we share this mission. Our new partnership with Travel Underwriters is meant to help you get travel insurance quotes and policies right from the comfort of your livingroom.

(USA Today takes Travel Insurance Questions from Readers continued...)

New Locked-in Account Laws for Ontario

The new Ontario LIF laws
will give freedom
to account holders.
photo by "bloomsberries"

New legislation for locked-in accounts in Ontario means greater access for clients in the province with money locked-in to insurance plans and greater flexibility when it comes to managing their savings for retirement.

(New Locked-in Account Laws for Ontario continued...)

Long-term Care Consumer Report

Growing 2 old has never
been easier with Long
term care insurance.
photo by Edwin Kelly Tofslie

We're always surveying the latest and greatest in insurance plans available in Canada and today we're breaking down the advantages and disadvantages of some of leading long-term care plans in Canada. We do the work, so you don't have to.

In 2008, LIMRA, a financial research firm, introduced stats that underscore the importance of getting long-term care insurance early. These include the following:

(Long-term Care Consumer Report continued...)

Travel Insurance: An Olive Branch that’s Peace of Mind?

This may have been avoided
with Travel Insurance.
photo by Daniel Lobo

When most of us go on a trip, insurance is the furthest thing from our minds. We're there to take a load off, see the sites or visit family and friends. But what if you have an accident? What if the family member you're traveling with falls ill? What if your belongings and money are stolen?

Travel insurance can save you the grief of those nightmares for only a few cents a day. According to Maclean's Magazine, Canadians are losing $2 million dollars a day in cancelled flights -- and that's just from Air Canada.

(Travel Insurance: An Olive Branch that’s Peace of Mind? continued...)

LSM Partners with Travel Underwriters to Provide Online Travel Insurance Solutions

December 1, 2009 -- Lorne S. Marr Insurance Services Ltd. is proud to announce we will be adding travel insurance to our ever expanding repertoire of online insurance services. 

LSM has partnered with Travel Underwriters, a company with more than 40 years experience in the travel insurance field, to go beyond providing quotes for our customers and, for the first time ever, hand them the ability to provide travel insurance for themselves and their families right from the comfort of their own livingrooms.

Long-term Care Insurance: Why You Should Buy Now

Thinking about Long-term
Care? Don’t wait any
longer, buy now.
photo by Doug Sheffer

Long-term care insurance was first sold in the U.S. in 1987, with Canada following in the early 90s, and there's still a limited number of Canadians with long-term care policies. That's why we have seven reasons why you should consider buying long-term care insurance now.

(Long-term Care Insurance: Why You Should Buy Now continued...)

Long-Term Care Insurance: The Top 5 Reasons People Claim Benefits

Alzheimers disease is the top reason
people claim long term care benefits.
photo by Michael Carian

People claim Long-term Care benefits for a variety of reasons, but Life Plans has released the definitive top five reasons the average claimant (about 61.6-years-old) files a claim.

The top five reasons that long-term care policy holders go on claim are:

LIMRA’s Long-term Care Statistics

LIMRA's long-term Care statistics for 2008 show that while the number of long-term care policies being sold in the United States is rising, the number of Americans who are properly insured is still extremely low.

The data they reveal include the following:

RBC Life Insurance Pricing Announcement Oct. 2009

RBC Insurance has Re-Priced its Term 10 and Term 20 Plans by lowering its already competitive rates, effective October 26, 2009.

They are particularly well priced on their Term 10 and Term 20 policies, with face amounts of $250,000.00 and up for applicants age 35 to 55. The rates have been adjusted on both their standard and preferred rate plans.

Additionally, RBC Insurance introduced a new $10M brand for high net-worth clients looking for higher coverage amounts.

You can get quotes on RBC Insurance policies, as well as from other leading life insurance carriers, at our Instant Quote page, or contact us at 1-866-899-4849.

Life Insurance and Foreign Travel

Where you go and
where you’ve been
for the holiday season
can have a major impact
on your insurance premiums.
Photo by Claus Rebler

With the holiday season fast approaching, many people are looking to get out of dodge for a little rest and relaxation. However, past and future travel plans can have a big impact on life insurance premiums.

(Life Insurance and Foreign Travel continued...)

La Capitale’s Enhanced Critical Illness Plan

La Capitale  recently announced the availability of its new Enhanced Critical Illness program as of November 17th, 2009. The policy features include:

1.  25 covered illnesses or surgeries (standardized definitions).
2.  100% return of premium after 15 years (limited to it's health option plan).
3. Three payment options,  pay for 15 years, until age 65, or for the life of the policy.
4.  Extended "Best Doctors" MD services.
(La Capitale's Enhanced Critical Illness Plan continued...)

How Canadian Life Insurance Companies Underwrite Scuba Diving

Scuba divers can get
life insurance, knowing what
underwriters look for helps.
photo by Ian Myles

Canada has the largest fresh water lakes in the world, so it's only natural that our country would be a picturesque destination for scuba diving. Out of the 930,000 that get their beginner diver certification from the Professional Association of Diving Instructors annually, over 70,000 were Canadian between 2000 and 2008. However, as a high-risk sport, it can impact your ability to get life insurance, which is why we're telling you what variables Canadian life insurance companies will be looking for if you're a scuba diver, before you have to find out the hard way.

(How Canadian Life Insurance Companies Underwrite Scuba Diving continued...)

Desjardins’ Long-term Care Plan

Our second in a series of close look assessments of three of the leading long-term care insurance plans in Canada is coming at you now. We began with Sun Life, but now we examine Desjardins Financial Security's Long-term Care Plan.

Canada Protection Plan Non-medical Deferred Life Plan

CPP’s Non-medical Deferred
Life Plan is priced very well
relative to the competition.
photo by Alan Strakey

Canadian Protection Plan's Non-medical Deferred Life Plan is underwritten by Unity Life.

The plan has only six health questions and offers discounts to non-smokers. If the insured has been declined for life insurance in the past two years, he or she can still qualify as long as they answer, "No" to all six health questions. Coverage begins after the first two years from the time the policy was issued. If the insured dies within the first two years, the premium will be returned plus 3% interest, but the death benefit will not be paid. The death benefit will be paid in the event of death by accident.

(Canada Protection Plan Non-medical Deferred Life Plan continued...)

Disability Insurance: Will You Collect?

If this happens to you,
we’ll make sure you collect.
Photo by Jon Feinstein

Disability insurance is perhaps the most fickle of all the different types of insurance in terms of being able to collect for your ailment in a timely fashion because there just seems to be too many exclusions or fine print. However, if you tread carefully and follow our simple steps, you will be on the road to collecting on your claim everytime.

Verify the definition of disability.

When analyzing your disability insurance, it's very important to understand the fine print of the contract.

(Disability Insurance: Will You Collect? continued...)

Sun Life’s Long-term Care Plan

Many Canadian insurance companies carry a Long-term Care plan, but we know how hard it can be to tell the differences between them all. That's why we've taken the liberty of breaking down three Long-term Care plans from three of Canada's leading insurance providers. First in this series is Sun Life Financial:

Pros

• Rolling five year guarantee (guaranteed to remain the same for five years).
• Zero elimination period available for facility care.
• No waiting period if there's a relapse of illness within 180 days of recovery.
• Payment for the longer of 20 years or until the age of 55 is available.

Cons

• Comprehensive benefit has to be purchased for home care services.
• The client must submit receipts to claim benefits.

(Sun Life’s Long-term Care Plan continued...)

Inflation Is Back

Inflation in Canada
photo by Joshua Williams

Five months of deflation, the longest period recorded in Canada since 1953, ended last month. Year-to-year inflation edged up 0.1% in October, jumping into positive territory after September’s -0.9%. No matter how small one-tenth of a per cent inflation seems to be, questions about the future still arise.

(Inflation Is Back continued...)

BMO Insurance’s EasyOne Life Non-Medical Life Insurance

EasyOne is better than
Guaranteed Life Plus.
Photo by Tom Grundy

BMO's EasyOne Life Plan is available through BMO's call centre. The plan is an alternative to their Guaranteed Life Plus Plan and has the following features:

1. Coverge takes effect from day one, unlike BMO's Guaranteed Life Plus Plan.
2. Face amounts range from $2,500 to $15,000.
3. Smokers and non-smokers get the same rate.
4. Applicants must be between ages 50 to 75.

(BMO Insurance’s EasyOne Life Non-Medical Life Insurance continued...)

Cooperators Non-Medical Life Insurance Plan

Is the Cooperators Non-Medical
Life Insurance Plan for you?
by Jeff Kramer

Cooperators, which employs a captive sales force, offers a non-medical life insurance plan available with face amounts from $2,000 to $25,000.

(Cooperators Non-Medical Life Insurance Plan continued...)

BMO Insurance’s Guaranteed Life An In Depth Analysis

BMO's Guaranteed Life
Plus Plan may not be all
it is cracked up to be.
photo by Eric Wardy

 BMO Insurance's Guaranteed Life Plus is only available through BMO's call centre and not through its broker network. The first of many strikes against a plan that may sound pretty decent on the surface, but underneath has many underlying issues.

(BMO Insurance’s Guaranteed Life An In Depth Analysis continued...)

Manulife’s Follow Me Life Insurance Plan

Manulife's Follow Me plan is available without medical tests to applicants who have left their company's group plan and apply within 60 days of the coverage ending.

State Farm Term 30 Life Insurance Plan: How Does it Stack Up to the Competition?

Does State Farm’s Term 30 plan
stack up to the competition?
by Isaac Bowen

State Farm is ranked the 26th largest carrier in terms of life insurance volume in Canada, as per their website, www.statefarm.ca. Their life insurance plans are available in three provinces Alberta, Ontario and New Brunswick.

A key plan in their term insurance line-up is their Select Term 30. The plan features include:

• Premiums are level for 30 policy years
• The plan is guaranteed renewable without a medical
• The plan is convertible to a permanent plan without a medical

(State Farm Term 30 Life Insurance Plan: How Does it Stack Up to the Competition? continued...)

Do Employees Prefer Health Benefit Plans or Cash?

The Sanofi-Aventis health care survey contacts over 2,090 health benefit members. It's the most comprehensive survey of its kind. The current survey, as reported by Benefits Canada, recently asked the question, Do employees prefer health benefit plans or cash?

Nearly half of all respondents said they would choose a health care plan over cash.

(Do Employees Prefer Health Benefit Plans or Cash? continued...)

Level Term Insurance vs. Decreasing Term Insurance

Wondering the difference
between level and decreasing
Term Insurance?
We’re here to help.
photo by Drew Herron

Term insurance comes with a variety of terms from five years to age 100. One variable that is often overlooked is whether the insured should go for a level term policy or a decreasing term life plan. Below is a summary of the differences between the two coverages:asd

(Level Term Insurance vs. Decreasing Term Insurance continued...)

Term 10 or Term 20 Life Insurance? Not Sure which is Best, La Capitale May have the Answer

Term 10 life insurance is generally the most popular form of life insurance in Canada. It provides low initial premiums, but the cost can rise substantially as the insured gets older. For example, RBC Insurance's $500,000 Term 10 insurance for a 35-year-old, male non-smoker with premiums starting at $26.37/month. However, at the end of the 10th year, the renewal premium becomes $146.70/month.

Group Insurance and Health Care Spending Accounts

Employees' Satisfaction by BAIA

Health Care Spending Accounts (HCSA) are an affordable way to help employers give their employees the health care services they need without incurring any additional out-of-pocket expenses.

HCSAs can create flexibility and minimize cost increases of employee benefit plans. The employer contributes a predetermined amount of funds into the HCSA for each eligible employee. These funds are then used to pay for health expenses outside their employee group benefit plan or the traditional provincial health plan.

(Group Insurance and Health Care Spending Accounts continued...)

BMO Insurance 20-Pay Whole Life Plan: High Premiums, But Strong Paid-Up Values

BMO Insurance offers a wide variety of permanent life insurance policies, some are very competitive, while others could leave you overpaying. BMO's 20-pay, Non-participating Whole Life plan has a high ticket price, (in some instances, up to 70% above that of its competitors) but it also has very aggressive cash values and industry leading paid-up features.

The non-participating feature of BMO's 20-pay plan means that the client does not participate in the insurance company's profits and all the values within the policy are fully guaranteed. The plan's particular asset is its paid up feature. Starting on the tenth policy year, the policy can be paid-up for a reduced face amount with no further premiums required. The reduced face amount will start at 50% and increase 5% each year until the policy's twentieth anniversary.

La Capitale Simplified Issue Critical Illness Plan

La Capitale offers a one page, six question, Simplified Issue Critical Illness Plan. The policy pays out upon the diagnosis of one of six critical illnesses: stroke, coronary artery bypass surgery, heart attack, potentially fatal cancer and coma paralysis. It's available in coverage face amounts of $10,000, $25,000 and $50,0000.

BMO Insurance Offers Three Unique Term 100 Solutions

Term 100 Policies provide premiums level for life and lifetime protection. Traditionally, Term 100 policies do not build a cash value or have paid-up values. That means that if the insured decides to discontinue his/her coverage at any point in the future, there would be no cash value returned to them and they will not have a reduced paid-up option, allowing them to keep a certain amount of coverage without paying a higher additional premium. BMO Insurance (formerly AIG Life Insurance) offers a stripped down traditional version and two enhanced plans with cash values and paid-up values.

LSM Insurance’s Quest for the Perfect Buying Experience

"Nobody likes to be sold, but people do like to buy when the value delivered is greater than the purchase price."

"We'll be here for your financial needs
every step of the way."

This is the cornerstone of the philosophy upon which LSM Insurance was founded. To this day, we continue to strive to maximize our customers' buying experience.

Health, Dental and Life Insurance in One Package from the Canadian Freelancer Union

Recently, we've been taking a look at the three insurance plans offered to the members of the Canadian Freelance Union, a division of the Communication, Energy and Paperworkers Union (Local 2040). Underwritten by ABC Insurance Services Ltd. and Greenshield Canada, we take a look at the benefits, advantages and disadvantages at the second plan offered -- Value Plus.

(Health, Dental and Life Insurance in One Package from the Canadian Freelancer Union continued...)

Life Insurance and Swine Flu: Minimizing Your Risk

As highlighted in our recent article Swine Flu and Life Insurance, the Canadian life insurance industry is continuing to monitor how the H1N1 Virus is influencing mortality risk. Most companies have added underwriting guidelines for dealing with the global epidemic and these are discussed in our previous article.

Swine Flu by U.S. National Institute for Allergy and Infectious Diseases

But how can you reduce your risk for catching the virus, so that Swine Flu never becomes part of your profile for the life insurance company considering your application? Dr. Oz has the answer.

The following are his tips for taking the fight to the H1N1 epidemic:

Group Insurance in Canada: Are You Paying Too Much?

Your employees will be happier
if group insurance costs are kept down
photo by Simon Law

Thanks to increasing pressures on the current healthcare system, the consolidation of the Canadian insurance industry and a growing demand from employees for increased and expanded coverage, group health plans across Canada have risen by 15%, while dental plans have risen by 7%, according to exit planning strategist Peter Merrick. However, there are several things employers can do to keep their costs down. In light of this, you can utilize the following five strategies to help keep your premiums affordable:

(Group Insurance in Canada: Are You Paying Too Much? continued...)

Manulife Living Care Underwriting Made Easy

The following is a snapshot of Manulife's underwriting requirements on their Long-term Care plan called Living Care. They do have the right to alter those requirements depending on the insured's health history.

BMO Insurance’s Critical Illness Insurance Plan: Life Recovery Plus

BMO Insurance's Life Recovery Plus is a Critical Illness plan marketed directly to consumers.The plan is available in either a basic plan, which pays up to $25,000 in insurance benefits, or an enhanced plan, which pays up to $50,000 in insurance benefits upon diagnosis of life threatening cancers, stroke or heart attack.

Health Insurance Without a Medical from the Canadian Freelancer Union

For the first time ever, thanks to its status as a division of the Communication Energy and Paperworkers Union, (Local 2040) the Canadian Freelance Union for independent media workers is offering a series of medical insurance plans.

Manulife’s Long-term Care Plan LivingCare

Manulife's Long-term Care plan, called LivingCare, is unique to the industry in that it is available on a single-life basis or a shared coverage option. Additionally, rather than having a set weekly or monthly benefit, Manulife allows the insured to choose a maximum benefit of up to $1,000,000 for single-life coverage or $2,000,000 for shared coverage between couples. The insured then chooses a benefit amount for single-life between 0.5% and 2% and for couples, between 0.25% and 1%. The amount is paid out for as long as the insured is on claim and it's to the point where it doesn't exceed the coverage amount. Waiting periods (how long until the funds are paid out) of 90 days and 180 days are available. Premiums can be payable for the insured's lifetime, or there is also a quick-pay option.

Random Facts About Long-term Care Insurance Everyone Needs to Know

Before you buy Long-term Care,
there are some things you should know.
image courtesy Ian Mackenzie

There are certain things all potential applicants should know before buying Long-term Care Insurance. It's our hope that the following facts will arm you with the valuable information you need to make the right decision for you and your family:

Life Insurance and Obesity

Obesity and its complications
don't have to prevent you
from getting life insurance.
image courtesy ThinkPanama

Much like the rest of the world, Obesity rates in Canada are steadily increasing. In 2004, the Canadian Community Health Survey reported that 23.1% of those 18 and older (an estimated 5.5 million adults) had a Body Mass Index of 30 or more, making them obese. Another 8.6 million, or 36.1% were overweight.

With so many more Canadians facing the reality of Obesity and the complications that go with it, such as high blood pressure, diabetes and coronary heart disease, this new reality can have a direct impact on their classification and their ability to get life insurance. The four classifications of traditional life insurance are as follows:

(Life Insurance and Obesity continued...)

What You Always Wanted to Know About Life Insurance (But Were Afraid to Ask)

There are facts about life insurance
you may want to know before you buy.
image courtesy Luciano Meirelles

The following are a series of life insurance facts, which you may find useful in your pursuit of the best possible life insurance policy:

Desjardins Disability: Solo Living Expense Plan

Solo Living Expense is a niche plan within Desjardins' Solo Disability product portfolio.

The policy is geared towards homemakers, part-time workers or people in occupations that would have a hard time getting traditional disability coverage. The maximum monthly indemnity on the policy is $1,500/month and it's available with a 30-day elimination period and a 12-month benefit period. However, there is not a critical illness or life insurance component on this policy.

You can get a Solo Living Expense Quote, as well as quotes from other carriers besides Desjardins at our Disability Instant Quote Page or feel free to contact us at 1-866-899-4849.

Banks prohibited to sell insurance online

photo by Benson Kua

Canadian banks are shocked about the new initiative from the finance minister Jim Flaherty. He wants to amend the Bank Act, which prohibits banks from selling insurance at their branches and also through their websites.

Seniors Life Insurance: Six Factors to Consider

There is a plethora of
insurance options out there for seniors.

The Canadian marketplace has changed dramatically for seniors looking for life insurance. Premiums have gone down in most instances, but at the same time, insurance companies are looking more closely at certain risk factors such as lifestyle and travel.

The following are six factors to look into when considering life insurance as a senior:

(Seniors Life Insurance: Six Factors to Consider continued...)

LifeInsurance.ca: Five Reasons Not to Buy Your Life Insurance Policy Online

Sitting down with a broker
is much better than buying online.

LifeInsurance.ca 101: a basic grounding in the realities of buying insurance or any other financial product online

With the title above, it may seem like we're shooting ourselves in the foot as a life insurance brokerage that specializes in the online marketing of life and health insurance. We have thousands of people visit our website daily, and many visitors constantly approach us about whether they can buy an insurance policy directly through our website. While we have tinkered with and marinated on this idea, we feel buying life insurance online is a disservice to our customers.

Some Canadian life insurance sites like lifeinsurance.ca aren't even real businesses but belong to domain speculators. They just send you to whoever is advertising that week.

The following explains our reasoning behind why buying a life insurance policy online just doesn't make sense:

Funny Insurance Commercials 3

The first six humorous TV spots with insurance as the main point comes to an end with the last two videos. This time the entertainment comes from the USA and the Netherlands.

Nationwide

Nationwide Mutual Insurance Company groups together a number of insurance companies that deal with everything from life to fire insurance. Anything can happen to you - and that's exactly what their advert is about.

Would you like to replay the video or share the link to it with your friends?

Desjardins’ Enhanced Term 10 Policy

Desjardins' Enhanced Term 10 policy is an innovative life insurance policy with a unique critical illness component.

The premiums are fixed for the first 10 policy years and the plan is guaranteed renewable.The critical illness feature is a unique part of the policy, in that the policy pays out immediately upon diagnosis. Most other critical illness policies have a 30-day waiting period, but since the critical illness benefit is paid out as an advance on the life insurance policy, no waiting period is required. Be aware that there are two exceptions -- there is a 90-day exclusion for cancer or benign brain tumours.

Penncorp Life: One Step Long-term Care

Penncorp Life Insurance specializes in disability insurance for self-employed individuals and small business owners. On Nov. 14, 2008, the company announced the launch of their Long-term Care plan, called One Step Long-term Care.

Other Long-term Care plans in the Canadian marketplace require that the insured is unable to perform at least two basic activities of daily living. (washing, dressing, feeding, transferring, toileting and continence) With the One Step Long-term Care Plan only one incapacity, including cognitive impairment, allows the insured to take advantage of the best possible coverage. Given the aging population and a public health system increasingly under pressure, Canadians are becoming increasingly concerned about the issue of Long-term Care. 40% of those who are already receiving Long-term Care are not yet age 65 and after age 65, close to 50% of all Canadians will need this type of care.

A Competitive Review of Engineer Canada’s Term Life Insurance Program

Engineer Canada offers a sponsored term life insurance plan that is underwritten by Manulife.

On the surface, it seems like a very easy and cost effective way for members to receive affordable term insurance coverage, but, when compared to indvidual term life policies, the rates may not be as attractive as they may seem at first. The Engineer Canada plan offers coverage up to $15,000,000. Members receive discounts of 5% on face amounts in excess of $500,000 and a 10% discount on face amounts of $1 million or more.

A 52-year-old, male non-smoker applying for $500,000 of Term 10 coverage with Engineer Canada's program will pay $117.04/month.

(A Competitive Review of Engineer Canada's Term Life Insurance Program continued...)

RBC Insurance Long-term Care Insurance: A Closer Look

RBC Insurance is a leading provider of Long-term Care insurance in Canada. The plan that puts them ahead of the competition is divided into two components. The first is facility care, available to applicants from 30 to 80-years-old, and the second is home care, for applicants from 30 to 75-years-old.

Thee benefit amounts are paid on a daily basis and are available with minimum benefit amounts of $10/day and maximum benefit amounts of $300/day. The plan pays out if the insured is unable to perform two or more of the following six activities for daily living: bathing, transferring, toileting, eating and maintaining continence.

O.M.A. Long-term Care Insurance

O.M.A.'s Long-term Care plan is there
if doctors require assistance due to illness or injury.

Ontario Medical Association [O.M.A.] offers a long-term Care insurance policy to members and their family members between ages 21 to 80. The plan is underwritten by Sun Life Financial and the pricing is identical to the Long-term Care plans available to Sun Life's broker network.

Desjardins Solo: A Unique Disability Insurance Program

Desjardins' disability insurance program is branded Solo, but, despite its name, it insures you will not be going it alone should you gain a disability due to illness or injury. Solo's unique features help separate it from other disability insurance plans available on the market.

One major distinction between Solo and its competitors is it has built in a life insurance and critical illness insurance feature. In the event that the insured passes away or, develops a critical illness, they receive five-times their monthly disability benefit as either a life insurance, or critical illness insurance payout.

Funny Insurance Commercials 2

As promised, we continue our funny insurance commercials mini-series with another two episodes, this time with insurers from the Netherlands and South Africa.

A Closer Look: Term 30 Life Insurance

Have your broker look over
which Term 30 policy is right for you.

Term life insurance provides a level, tax-free death benefit with premiums fixed for a stated term. Traditionally, most term policies are either five, ten or 20 years, but recently, as Canadians have begun to increase their debt load and the amortization period of their mortgages, Term 30 policies are on the rise. On the surface, the coverage is straight forward, but rates can vary substantially between carriers. The following chart looks at the main features and pricing from five of the top Term 30 life insurance carriers in Canada:

Term 100 Life Insurance: No Margin for Error

  Why Manulife's Lifewise Limited pay
policy may be better than Desjardins Term 100.

Term 100 life insurance provides guaranteed, easy to understand protection. The premiums are level for life and the coverage remains level for the insured's lifetime. Most Term 100 plans are paid up to age 100, so if the insured happens to live past age 100, no further premiums must be paid, but the coverage remains in-force.

Term 100, in the purest sense, does not offer a cash value, which means you are paying for straight insurance with none of the premium going towards an investment component.

On the surface, Term 100 is attractive to many consumers. It keeps premiums more affordable. However, Term 100 still has its caveats and deceptions:

CARP’s Long-term Care Insurance Plan

CARP offers Long-term Care insurance
for its members.

The Canadian Association for the Fifty-Plus (CARP), formerly known as the Canadian Association of Retired Persons, offers a Long-term Care insurance program to its members that is underwritten by Desjardins.

The program offers essentially the same features and pricing as the plan offered by Desjardins independent brokers. The plan's premiums are guaranteed within the first five policy years and then subsequent premiums can go up on a class slide basis. The CARP Long-term Care program is also subject to a full underwriting. Although there are no discounts for non-smokers, there is a 10% discount when both husband and wife apply at the same time.

Funny Insurance Commercials

Although the world of insurance may seem boring and pretty conservative to the outsider, we - agents, advisers and brokers - simply we all who live in the world of insurance rates, quotes and premiums, we know the truth - insurance is pretty exciting and vibrant industry.

Maybe therefore insurance TV commercials belong on the list of funniest. We sorted the best ones and will offer it to you in our short serie of funny insurance commercials. Enjoy the first couple from Sweden and Canada.

Life Insurance: Is it a Good Investment?

Life insurance can be a great investment,
but will it work for you.

Life insurance can be broken into two broad categories: Term insurance and permanent life insurance policies. Term insurance policies generally cover you for a temporary period of time, e.g. ten or 20 years. Permanent policies on the other hand, can cover you for your lifetime.

Permanent policies can be further sub-divided into three additional categories: Term 100, Universal Life and Whole Life. The latter two policies have several variations and a qualified independent broker can find the best fit that's right for you.

The primary difference between Whole Life and Universal Life is that on a Whole Life policy, the investment component is built into the premium, but on a Universal Life policy it is separate. In addition, Universal Life policies offer a wider variety of investment options.

The number one quality of any life insurance policy is making sure it fills your need. Assuming your needs are met and a permanent policy is within your budget, the next question is whether it's a sound investment?

Opinions on this subject vary, in part because life insurance as an investment is a very misunderstood topic.The following are the advantages and disadvantages of using life insurance as an investment:

Long-Term Care Insurance Underwriting

Applying for Long-Term Care?
Know what the underwriters
are looking for.

The underwriting criteria for Long-term Care insurance can be significantly different than for life insurance. Life insurance looks at mortality risks such as heart disease, build or lifestyle, but Long-term Care looks at mobility and cognitive issues. These factors can significantly increase the likelihood the insured will require care. The list below outlines some of the issues an underwriter will consider when evaluating a Long-term Care application:

Great West Life’s Child Critical Illness Plan

Protect your child's future with Great
West Life's Child Oasis

Great West Life has a unique Citical Illness insurance plan for children -- Child Oasis. It's designed to provide families with the financial resources necessary to support the recovery and care of a child with a critical condition. It also helps insure their future insurability. Some of the features and optional benefits of the Child Oasis plan are the following:

• A lump sum benefit of ranging from $10,000-$250,000
• Coverage for 24 critical conditions, including five exclusive to childhood.
• Medical support services and resources from Best Doctors.
• A conversion feature at age 25.
• A return of premium at expiration (This is an optional benefit rider).
(Great West Life's Child Critical Illness Plan continued...)

A Closer Look: Long-Term Care Insurance

Manulife's 'Shared Coverage Option'
is just one way you and your spouse
can live out your twilight years.

Nearly half of all Canadians over the age of 65 will need some sort of long-term care.

While the government will cover some of these costs, there are limits not only to how much they will cover, but also the types of expenses they will cover. This is compounded by increasing government cutbacks on health care. In B.C., 4,400 MRIs will be cut in Victoria to cover a $45 million shortfall, while Vancouver is considering cutting more than 6,000 surgeries to make up for its own $200 million deficit. It's only a matter of time before Ontario residents will be feeling the pinch. The government also doesn't pay for private facilities, which can add up to thousands of dollars and erode a senior's financial nest egg.

O.M.A Group Life Insurance vs. Individual Life Insurance

If you're a doctor
O.M.A Coverage is there,
but is it the best?

O.M.A. stands for the Ontario Medical Association and they've been offering life insurance since 1956, underwritten by New York Life. These plans fall into two categories, a Term Plus 75 plan, which is available to members under the age of 60, and the Term Life plan, which is available to members 60 to 69.

The Term Life Plus 75 plan has two unique features: a portion of the coverage (10%) is paid up for life by the age 75 and the coverage automatically increases by 10% a year, for up to 10 years. Best of all, no medical test is needed to qualify for the 10% increase.

(O.M.A Group Life Insurance vs. Individual Life Insurance continued...)

Group vs. Individual Insurance

Manulife's individual life policy
has an optional rider for your children.

Many employees are enticed into buying optional group insurance to supplement their individual life insurance coverage. They often are misinformed into thinking that this optional group goverage will give them a lower rate and better value, but, the reality is, in most instance group coverage is actually more expensive than equivalent term life coverage without the added benefits of an individual life policy. Below we've outlined the difference between an optional group insurance policy and an individual life insurance plan:

(Group vs. Individual Insurance continued...)

Steps to Take If You’re Declined for Life Insurance

Got Declined? We can help.

Getting declined for life insurance can be a frustrating and discouraging event. However, the first thing to assess the moment you get declined is why you got declined.

Most insurance companies will not release this information to your agent or broker and will request that you sign a letter allowing them to release the information to your doctor. Once you find out why you were declined, speak to a broker who specializes in insuring the hard to insure. Some conditions, such as elevated blood sugar levels or high blood pressure can be declined on a temporary basis, i.e.once the condition is improved and stable, the insured will likely qualify for traditional coverage.

A Unique Insurance Solution for Self-Employed Business Owners

The hustle never stops
when your self-employed,
let an insurance plan
take some pressure off.

As a business owner myself, I know how hetic and stressful running your own business can be sometimes. One day falls into the next and certain projects get neglected. You count more and more on your family's support and they count more on more on you as a provider. One unexpected injury, illness or death is all it takes to cripple your business and flush your family's future down the tubes.

At LSM Insurance, we've been working with self-employed business owners for over 16 years.  We know your time is limited, that's why we take several steps to make sure the process is as easy and convenient as possible while you get both the best plan and the best rate.

Corporately Owned Life Insurance

Considering corporately owned?
We can lay it out clear.

Personally owned, or corporately owned, that is the question, especially if you're a business owner considering the purchase of life insurance. Life insurance is an important piece of any business and can be a tremendous asset to your business in the following ways:

• Key Person Insurance - In the event that the loss of a key person would mean a monetary loss for the company. In this situation, the corporation is the owner and beneficiary.
• Buy/Sell Insurance - Can be used to help settle a buy/sell agreement between two or more partners. In this instance, the corporation owns the policy on the shareholders and on the death of a partner, the corporation can redeem his or her shares. There are at least five ways to set up buy/sell insurance, which I will discuss in a later article.
• Estate or Succession Planning - This will help fund the transfer of shares to charity, family, or other business partners. In this situation, you need to be aware of the rules regarding taxable benefits when the insured is a shareholder vs. an employee or when the beneficiary is a spouse, rather than the corporation.
• Taxes Payable - Life insurance can be used to offset tax liabilities on death, which negates the need to sell your assets at an inopportune moment. The proceeds will then be typically deposited into the Capital Dividend Account (CDA) for further disposition to shareholders tax free.
• Charitable Bequests - Finally, life insurance can insure that a charity will receive a designated amount of money.

(Corporate Owned Life Insurance continued...)

Which Insurance Advisors will Prosper in 2010 and Beyond?

I'm predicting the future
of the insurance business.

The insurance industry has changed immensely over the last ten years and will continue to do so over the next decade. It may seem like the domain of a fortune teller, but I guarantee that insurance advisors with the qualities below will be best equipped to survive these changes.

They're insurance expertise will be greatly enhanced by strong business acumen - In the event that the advisor does not have a strong business background, he or she must align themselves with an organization which provides this strong back end support.

They will be independent advisors and not captive agents - The internet has vastly changed the way insurance advisors do business, Insurance advisors offering poor pricing will be quickly exposed and flushed out. The internet offers instant pricing information to consumers, so it won't take them long to discover when a captive agent is offering an uncompetitive plan. Independent brokers scour the marketplace for the best possible value. Captive agents are generally limited to working for their parent company an often offer an incomplete product shelf. See this video for more secrets of captive agents.

LSM Insurance featured on Global Television

Global Television decided to take a closer look at our 4 day work week (four days of 10 hours as opposed to 5 days of 8 hours). Most of our staff love the flexibility.

Enjoy!

(LSM Insurance featured on Global Television continued...)

Record Falling Sales for U.S. Life Insurance

U.S. life insurance sales are
in freefall, just like these guys.

U.S. life insurance sales took their biggest six-month decline since 1942, according to LIMRA International.

Bloomberg News reports that indvidual life insurance sales have dropped 20% in the second quarter of 2009 because savers shunned investments linked to stocks.                           

In Canada, LIMRA reports a different story. While sales of universal life policies have fallen 14% compared to the same six-month time period just a year ago, advisors have been able to use steady term life and whole life policy sales to offset those losses. All told, there has only been a 1% decline in annualized premiums so far in 2009.

While there is no question consumers across North America are on a tighter budget, life insurance still remains the foundation of most financial plans. Without adequate life insurance, an unexpected death can create a financial tsunami in the average household. Life insurance provides the financial safety net all families need to get from point A to point B.

Of course, that doesn't mean you can't still save money on your policy. The following are six great ways to save money on your life insurance:

Avoid accidental death insurance - Many Canadian insurance companies heavily market accidental death insurance to unsuspecting consumers. Accidental death is heavily profitable for these companies, but provides only rare benifit to the consumer because fewer than 3% of all life insurance claims are paid out thanks to death-by-accident. Accidental death insurance can sometimes cost more than an equivalent term policy.

Watch out for captive agents - A captive agent is only allowed to sell his/her company's own products. Insurance companies employing captive agents generally charge higher premiums than the companies employing independent brokers do. Captive agents cannot shop the market for the best value for you and, in some instances, may not offer the product best suited to your needs.

The cheapest policy is not always the least expensive - This concept may seem contradictary, but when analyzing your life insurance premiums, remember that overall cost is more important than the initial premium. Many insurance companies try to lure clients with low initial premiums. Term insurance policies, which offer low initial premiums that increase as the insured ages, are appropriate if used for temporary insurance needs. The problem is, many brokers employ a one-size-fits-all philosophy. They don't take enough time to assess why you're looking for insurance, or how long you'll need it.

Look for a company that offers preferred rates - The difference between preferred and standard rates can be very significant, especially for term policies. A 40-year-old male, non-smoker would pay $62.55/month with Equitable Life for standard rates on a $500,000 Term 20 policy. The plan would cost $44.55/month if the same applicant qualified for perferred rates. Click this link to see if you qualify for your own preferred rate.

Make sure you are not over insured - Our Needs Analysis Calculator will give you an excellent barometer of your own insurance needs and help you determine if you are over-insured.

Work with an independent broker - However, you must make sure he/she has access to a full breadth of companies, not just two or three. Get a free instant quote by following this link, or give us a call at 1.866.899.4849.

Weird Insurance: Collectibles

Well Travelled Message by Scott

Hands up anybody who has ever collected anything in their lives. Probably most people have, at one time or another, collected a variety of things such as stamps, bubble gum stickers, Zippos or toy sets from breakfast cereal boxes. Usually, after a number of years, boxes full of various treasures have ended up in the attic, covered in dust, or even finding a permanent home in the garbage bin.

For sure, there are some among us that have never given up this sometimes strange habit and have turned it into a lifelong hobby. There is, however, a certain breed of collectors, who have taken this hobby to a higher level and have diversified their portfolios by investing in valuable coins or stamps.

So, why is there a need for special insurance coverage?

Consider this: normal household insurance is quite adequate if you just need to cover everyday items such as TV’s, computers etc. But collectibles are a different matter entirely. In certain situations low value collections may be covered, but submitting a claim to the insurer is fraught with difficulties and can often be unsuccessful. Most household policies normally only cover the material cost of lost or damaged property. It is relatively easy to claim for a damaged front door or smashed window, but try claiming for a priceless Blue Mauritius stamp.

So, Mister Collector, what should you do if you have a stamp or coin collection that is worth more than the house that it is kept in? Are you having sleepless nights worrying about its safety? Fortunately, there is an easy solution in the form of specialist collectibles insurance coverage. These policies are affected by some of the bigger players such as AIG (through their Private Client Group), Allianz (via previously mentioned Fireman’s Fund policy) and also by a number of smaller providers.

As an avid, collector, you would probably choose an ‘all risk’ policy which would cover your beloved collection for things such as theft, flood, fire, normal wear and tear and even a nuclear disaster or mysterious disappearance. The strange phenomenon of mysterious disappearance can be found in the cover that is offered by the Fireman’s Fund policy. Most policies cover travel and transportation so you needn’t worry if you have to travel to the other side of the world to collect or deliver your latest additions.

Since collections tend to grow in size and value over the years, insurance policy writers have included this in their policies as a way of attracting customers. New items that are added to your collection can easily be added to your policy by means of a phone call. You can even do this before you go to collect your new piece so that it is insured before you even get your hands on it.

Obviously nothing can replace your cherished collection, should it be destroyed by fire or stolen by some hard-hearted thief. However, the pain can be lessened somewhat, if you have adequate insurance cover in place for the full value of the collection.

What is the Best Way to Buy Life Insurance in Canada?

Don't bother with call centres,
get a broker working for you.

From all forms of communication available, Canadians are constantly bombarded with seemingly endless pitches to buy life insurance. Be it by phone, by mail, in-person, or online, it all begins to look the same. That's why when you're finally ready to buy a policy, it can be difficult to discern not just what life insurance policy to buy -- but the means you should use to buy it.

The following will hopefully help you seperate the wheat from the chaff when it comes to the best route for buying your life insurance policy:

Online - Many major insurance companies allow you to buy your policy online. At first glance, this may seem like an excellent option because, after all, you avoid the middleman and are buying direct.

The reality is the insurance companies charge the same premium, whether you buy online or through a broker.

(What is the Best Way to Buy Life Insurance in Canada? continued...)

Desjardins: Group Benefit Plans that Work

Desjardins Financial Security has been selling insurance plans since 1948 and  established a pedigree in group insurance, shortly after, in 1952. Its history has made it the number one insurance company in its home base of Quebec and helped them earn $93.4 million in group insurance sales during the first six months of 2009.

These group plans generally fall into the following three categories:

PremiumPlus: standard plan for groups of 3-50

Traditional Plans: the employer selects plan benefits for employees

Flexible Benefit Plans: designed to fit the needs of individual employees

Available coverage in all plans: extended health care benefit, dental care benefit, disability benefit, critical illness benefit, accidental death and dismemberment, basic and optional life insurance benefit. Plus, a vast range of complimentary services for group insurance plan administrators and members

Group insurance plans provide two key benefits to employers:

They contribute to employee satisfacition, which translates into more productivity.

They contribute to competitive job conditions, which helps the company hire and hold onto the best people in the field.

Lastly, from an employee's standpoint, it protects quality of life and guards against life's unforseen events.

For additional security and organization, Desjardins' plans provide both employers and employees secured websites to help them manage their group insurance files.

You can get a free, online group insurance quote at our Group Insurance Instant Quote Page. If you would like more information on group insurance, feel free to call us at 1.866.899.4849.

How Insurance Brokers are Paid

How does your broker earn their keep?

All insurance advisors, both captive agents (those working for one company) and independent brokers (those working for multiple companies) are generally paid commission when an insurance policy is put in force.

It's cruicial to note that the agent/broker is paid by the insurance company. However, the media and consumer skepticism has done a lot to create misunderstanding. The following are points often misunderstood regarding the payment process:

Life insurance commissions drive up the price of the policy- Life insurance policies, whether sold via salaried employees or self-employed brokers, have distribution costs. The insurance company includes the price of distribution inside the price of their policies.

Companies that use multiple distribution models for the same life insurance product, eg. RBC Insurance or Manulife, charge the same premiums regardless of how the consumer buys the policy. A $200,000 Term 10 policy from Manulife will be the same rate whether the policy is bought via their call centre, website, or an independent broker.

Two advantages of working with a broker are the following:

a) He/she can advise you on the best type and amount of coverage.

b) He/she can shop the market for the best premium.

Life insurance commissions are negotiable- Life insurance commissions are not negotiable. It's not like buying a car or a house. Once again, the commissions are built into the distribution costs of the policy and cannot be altered.

Whole Life or Universal Life policies pay higher commissions than Term Life policies - Life insurance commissions are based largely on the premium of the policy, i.e. the higher the premium, the higher the commission. Whole and Universal policies have higher initial premiums than Term policies, but the Whole and Universal policies are bought once. Term policies increase in cost as the insured gets older, so they will buy multiple term policies over their lifetime. Each time a new policy is bought, a commission is paid, but more importantly to the consumer, each time a policy is bought the applicant is older, so they're paying a higher premium. If his/her health has changed, the premiums will be significantly higher and/or the coverage will not be available. It is key that the insured have a keen understanding of how much life insurance they need and how the different life insurance policies work.

Some companies pay higher commissions than others - Commission rates can vary slightly from one company to another, but given that insurance commissions are a fixed cost within the policy, this should have no impact on the consumer decision.

Make sure the broker works with multiple carriers, some brokers, while independent, only work with two or three. Our brokers have access to 15 different life insurance carriers, ensuring you get the best possible rate.

If you have any questions about broker commissions, don't hesitate to call us at 1.866.899.4849. You can also get a free quote from our online Term Life Instant Quote Page.

Desjardins Critical Illness and Life Underwriting Guidelines for New Arrivals

Desjardins Financial Security gives new Canadian residents special attention when it comes to qualifying for their critical illness and life insurance plans. It is now possible to have lived in Canada for less than two years and get the full insurance benefits available to native Canadians.

The only caveat is that the applicant must belong to one of the groups below and meet the following criteria:

Indviduals with Permanent Resident Status

• Must have received documents confirming permanent resident status

•  Individuals living in Canada for less than two years must have passed paramedical, urine, blood profile with HIV, Hepatitis B and C screens (standard requirements otherwise).

Skilled Workers

• Must have been residing in Canada for a minimum of three months

• Workers under either federal or provincial immigration programs will be considered with confirmation of their status.

• Individuals living in Canada for less than two years must have passed paramedical, urine, blood profile with HIV, Hepatitis B and C screens (standard requirements for all others).

Foreign-Trained Physicians

• Must have resided in Canada for a minimum of three months

• Physicians working in a provincial program will be considered with a copy of their employment contract.

• Must be liscensed to practice medicine in Canada

• Individuals living in Canada for less than two years must have passed paramedical, urine, blood profile with HIV, Hepatitis B and C screens (standard requirements for all others).

Caregivers

• Must have resided in Canada for a minimum of three months

• Caregivers who work as nannies or "live-in" caregivers under a special immigration program will be considered.

• $250,000 of life insurance and $50,000 for critical illness insurance are the maximum amounts.

• Individuals living in Canada for less than two years must have passed paramedical, urine, blood profile with HIV, Hepatitis B and C screens (standard requirements for all others).

Married to a Canadian Citizen or Permanent Resident

• Must have resided in Canada for a minimum of three months

• Individuals who have applied for permanent resident status will be considered with confirmation of their spouse status.

• Individuals living in Canada for less than two years must have passed paramedical, urine, blood profile with HIV, Hepatitis B and C screens (standard requirements for all others).

Temporary Foreign Workers (Work Visas)

• Must have been residing in Canada for at least one year

• Individual consideration only

• $250,000 of life insurance and $50,000 for critical illness insurance are the maximum amounts.

• Individuals living in Canada for less than two years must have passed paramedical, urine, blood profile with HIV, Hepatitis B and C screens (standard requirements for all others).

Insurance is not available to the following individuals:

• Foreign students on student visas

• Individuals working for Canadian or foreign embassies

• Individuals applying for refugee status (refer to note below)

Note: Insurance is not available to individuals at any stage of refugee status. However, if you are one of these indviduals, you can be considered for life insurance if you've been residing in Canada for at least two years at the time you submit your insurance application. Under these conditions, the maximum amount of insurance available is $250,000 for life insurance, including any other policies already in force. Critical illness insurance is unavailable.

For more information on Desjardins underwriting requirements for New arrivals to Canada or Permanent residents, please call us at 1.866.899.4849.

Weird Insurance: Weather Insurance

photo by Marco Gomes

Although weather insurance sounds a bit unconventional, weather insurance is one of the oldest forms of insurance around. Farmers’ earning have been tied to the weather since the beginning of agriculture. Weather insurance covers far more than crops now.

Rain is the primary target of weather insurance. Luckily, rain insurance policies are easy to find. You can choose rain accumulation policies (you are able to select if your golf tournament will be wasted by ½ inches of rain or even ¼ is too much) or dry hours (number of hours with no rain accumulation in a period of time). Similarly you can take counteraction on snow, aiming on the inches per session or per storm. Municipalities and public organs can buy a special version to cover extra costs – snow removal insurance.

And that’s just the beginning. A hot air ballooning show may insure themselves against undesired wind conditions with wind insurance. An ice cream promotion can purchase temperature insurance to secure the investment in the face of cold weather.

Most insurers allow you to combine these policies for any event. Typical clients are film productions (and many insurance companies tailor special policies just for the film industry, including conditions of underwater visibility or lack of snow). Weather insurance is also popular with managers of sports events, concerts, festivals, trade shows…

For us, whose business is not directly influence by the weather influenced, can still purchase weather insurance for our free time and our holidays. This quite new product is just acquiring customers around the world. French travel agencies (in cooperation with Aon France) are offering partial money reimbursements, when you encounter more bad days than expected during your stay. Equally, German airline Lufthansa has launched a new sunshine insurance. Passengers from Germany can buy for €20 ($31.24) simple insurance policy, which will pay them €20 for every spoilt day (more than 5mm of rain) during holiday.

If you are on your way to Tunisia or Greece, you probably don’t need weather insurance. And I’m not sure if you are on your way to Vancouver, they will sell you weather insurance. It wouldn’t hurt to ask. You could easily eat for free most days you are away.

Life Provider: BMO’s Universal Life Preserver

The obligations of life can be hugely stressful even at the best of times, compound that with a sudden illness, disability, or death in the family and suddenly, you're going down hill fast.

That's where Bank of Montreal's Life Provider comes in. It's a universal life policy that gives policy holders and their families a plethera of counselling, guidance and referral services to help you through the tough times at no additional cost.

Below are just some of the services available through the policy:

• friendly people who can point the way towards dependable social and community services.

• A registered nurse available by phone 24/7 who can be there to talk you through an injury or illness.

• An online wellness resource library for looking up health issues that have you stumped

• a counselor to help you through the grief of the hardest personal losses

You can find the complete list of complimentary, confidential and dependable services here.

All aid services are provided by Shepell*fgi, a health and wellness resource and counselling provider that typically helps employees through their health and wellness issues in order to help increase their productivity at the office. All services provided come with a 100% confidentiality guarantee.

If you'd like more information about BMO's Life Provider policy and the additional services provided through the plan, please don't hesitate to call us at 1.866.899.4849.

Weird Insurance: Events Insurance

Wedding by Janice Gelona

Life insurance, long term care, disability insurance – we all have purchased at least some of these products. They are well known options to protect financial safety of our everyday life. You may think the choice of different types of insurance is wide, but a bit conservative. But the world of insurance is more colourful than you would ever imagine. And some special policies offered may be a bit bizarre. One of them is events insurance.

You planned wonderful romantic wedding - ceremony on the beach, roses everywhere and hundreds of guests. And suddenly, just an hour before the ceremony beginning you step on veil, slip and break your leg. Luckily, insurance can save the worst. No matter if it’s birthday party, wedding, or bar mitzvah, you can insure almost all aspects of the event. Tailor your policy à la carte to fit the needs – liability and cancellation insurance are among the first ones you want. But what about having bad weather during outdoors celebrations? No problem, if you purchase the policy in advance (around two weeks), you can ask also for this protection. And there is much more. If unskilled photographer accidentally destroys the photos, insurance will help you to retake it. Also all the gifts, jewellery and rental property can be covered. And what if the bride runs away right from the altar? Yes, believe me; you can cover cold feet too.

Event insurance is in some of the biggest world insurers’ portfolio. Allianz offers it through Fireman’s Fund subsidiary; Axa adds fireworks and Christmas light insurance, some other stress the possibility to insure alcohol related accidents. Rates usually start below $100 for the basic coverage.

Simply, your events can be insured from Alpha to Omega.

Desjardins SOLO and SOLO Health Underwriting Requirements

Desjardins Financial Security has put together a life and health insurance plan called SOLO and SOLO Health targeting new Canadian residents. The plan is open to those who have been residing in Canada at least one year, but there are several exclusions and requirements associated with both plans. All of these parameters are detailed below:

Requirements

• Have or have applied for permanent resident status

• Intend to remain in Canada permanently

• Demonstrate at least one full year of income and varifiable, full-time employment (for SOLO products)

• Are covered under the provincial medical plan of their province of residence (for SOLO Health products)

• provide adequate medical history

• meet the eligibility requirements for the product you intend to purchase

• Meet standard medical screening requirements and pass additional paramedical screenings, along with supplying a full urine and blood profile, if you've been living in the country less than two years. These also include screenings for HIV and Hepatitis B and C.

Exclusions and Limitations

• Even for indviduals with permanent resident status, a travel or foreign residence exclusion may be applied if there are specific travel concerns. If you don't have permanent resident status, this exclusion is more likely to be applied.

• For those without permanent resident status the SOLO Health plan will be limited to the most basic care with option 1, with the only supplementary benefit being the dental benefit.

Please also note that these exclusions and limitations apply to any indvidual insured under the plan, including a spouse and children.

You cannot qualify for this plan if:

• You are at any stage of refugee status

• You are a foreign student, or have a student visa

• You have a temporary work visa

• You work in a Canadian or foreign embassy

If you have any further questions about SOLO or SOLO Health, or you think this plan may be right for you, call us at: 1.866.899.4849.

Manulife Cuts Half of their Term Rates

Manulife slashed half of their term insurance rates and that doesn't mean fine tuning.

Thanks to the economic climate, Manulife is counting on the fact that fewer applicants will be buying permanent plans and more people will be turning to term plans to solve their insurance needs. With this in mind, it cut its term rates by a 50% margin overall.

Effective August 24th, rates in mainstream markets such as Brand 4, ($500,000-$999,999) Brand 5 ($1,000,000-$9,999,999) and Brand 6 (10 million+) for both males and females ages 40-55.

Combine that with sales features like sales support and claims service that is second to none and Manulife believes it presents a pretty persuasive argument to the consumer.

Of course, you, the consumer, are the true judge of that, so with that in mind we have set up our free Term Insurance Instant Quote Page, so that you can get the best rates in the industry with the click of a mouse.

A Closer Look: CAA Non-Medical Life Insurance

CAA's Non-Medical Life Insurance, tagged "Guaranteed Issue Life" is offered to CAA members between the ages of 40-75. There are no medical exams and the application offers a 20% discount to non-smokers. The other features of the policy are listed below:

(A Closer Look: CAA Non-Medical Life Insurance continued...)

CAA Term Life Insurance: Not All It’s Cracked Up to Be

When it comes to CAA Term Life Insurance, underwritten by Manulife exclusively for members of the Canadian Automobile Association, it's best that you don't believe the hype.

(CAA Term Life Insurance: Not All It's Cracked Up to Be continued...)

Industrial Alliance Reduced Term Rates

Growing demand in the Canadian insurance market means Industrial Alliance has reduced its term insurance premiums by 5% as of August 10, 2009.

The reduction applies to the following:

• New issues

• Term 10 and Term 20 policies added to Axis and Maxirance contracts

• Term 10 and Term 20 policies added to Genesis and in-force UL contracts.

• Pick-A-Term added to other Pick-A-Term policies and traditional insurance contracts.

Pick-A-Term is a type of policy that gives you life or disability coverage for level, decreasing from 50% to 0% face amounts with level and guranteed premiums for a chosen term. Renewal and extension of the term is also at a favorable cost.

However, in order to take advantage of these reduced term rates you must get your applications in to Industrial Alliance by August 21, 2009.

If this limited-time opportunity that you may be interested in, please don't hesitate to call us at 1.866.899.4849. Before you pick up the phone, click this link and find out how much insurance you really need. You can also go to our free, Online Term Insurance Quote Page.

Standard Life offers GIC: Ideal Term Fund Plus

Standard Life has a GIC with better 5-year rates than the banks (as of August 11, 2009). Just take a look for yourself:

Bank                                      Rate

Scotia (non-redeemable)      2.10%

TD Canada Trust                   1.85%

BMO (non-redeemable)        2.10%

RBC Insurance                      1.85%

CIBC                                     1.85%

Standard Life's Ideal Term Fund Plus is currently offering 4% and, unlike Scotia and BMO, it is fully redeemable (subject to market-value adjustment). In addition, it offers all the same benefits of an insured investment, including the opportunity to split your pension income as well as the potential to double the pension tax credt, the potential for creditor protection and the opportunity to bypass probate.

The minimum investment is $25,000, there is no set-up fee, there are flexible terms from five to ten years and there's a 45-day rate basis guarantee available. If you would like more information on Ideal Term Fund Plus, or any of Standard life's other plans, programs and products, please don't hesitate to contact us at 1.866.899.4849.

Standard Life's new 5 year rate as of November 3rd is 3.45%

Don’t Underestimate The Importance of Disability Insurance

Disabled directions by Chelsea Oakes

What people mostly imagine under ‘disability’ is the loss of mobility after a sudden accident related either to work or sport. But the statistic tells us quite a different story: people are twice as much likely to be disabled due to a serious illness such as cancer, diabetes or heart disease than to an accident.

Your chances of becoming disabled;

People under 65 years of age are twice as much likely to become long-term disabled than to die due to accident or illness. Of course the chances of becoming disabled gradually raises with age:

• 3 in 100 children up to 14 years of age become disabled

• 4 in 100 young adults between 15 to 24 become disabled

• 7 in 100 adults between 25 to 44 become disabled

• 17 in 100 adults between 45 to 64 become disabled

• 40 in 100 adults 65 and over become disabled

• 53 in 100 adults over 75 reported disability
  (Source: Statcan)

At the moment 14 in 100 Canadians (4.4 million) are classed as disabled.

(Don't Underestimate The Importance of Disability Insurance continued...)

Making Sure Your Disability Policy Pays Out

Once your disability policy pays out,
you'll be back on the slopes in no time.

There is much more of a grey area with disability insurance than with a life insurance policy. Of course, it's hard to dispute a person's death. Whereas with a disability policy, there is often much miscommunication as to what qualifies as an eligible disability claim.

There are many variables to look for when analyzing a disability policy and its likelihood of paying out:

CARP’s Non-Medical Life Insurance

Those over 50 deserve better life insurance
than CARP can provide.

Carp is far removed from the fish of the same name.

Actually, it is CARP -- formerly the Canadian Association of Retired Persons, its role has since expanded as the Canadian Association for the Fifty-Plus. CARP was founded by Murray and Lillian Morgenthau in 1984 with the mandate to provide the seniors under its membership with, "powerful advocacy, targeted benefits and community support for an improved quality of life." In 2008, Canadian media impresario Moses Znaimer took over the reigns of CARP under his ZoomerMedia enterprise.

One of those "targeted benefits" includes a Guaranteed Issue Life Insurance Plan available exclusively to CARP members. (Paid memberships with a free subscription to Zoomer Magazine range from $29.95 for one year to $79.95 for three years.)

Healthy CARP members would be better off looking for traditional life insurance.

Offered through Manulife since 2006, the plan has absolutely no health questions and face amounts range from $2,500 to $25,000. However, this convenience comes with a heavy price.

(CARP's Non-Medical Life Insurance continued...)

Industrial Alliance Revamped it’s Non-Medical Life Insurance Line-up

Industrial Alliance has two non-medical life insurance plans.

The first plan, The Alternative, has a limited number of health questions and the death benefit is limited to a return of premium plus interest, if the insured passes away from a non-accident in the first two policy years.

Industrial Alliance's second non-medical life insurance plan, The Perspective, has an expanded list of health questions, but offers coverage from day one.

(Industrial Alliance Revamped it's Non-Medical Life Insurance Line-up continued...)

Understanding Preferred vs. Standard Rates

Qualifying for preferred rates
can save you money.

Canadian life insurance companies have been offering preferred rates for well over ten years now, but there is still quite a bit of confusion among consumers. This is mainly because there are many variables that come into play when determining whether or not the insured qualifies for a preferred rate.

Understanding the Disability Waiver of Premium

The Disability Waiver of Premium rider
takes financial stress away,
so you can still play sports
like you use to.

Disability Waiver of Premium is a rider available on most life insurance policies.However, most insurance companies have a maximum issue age on the rider of 60, so applicants over that age will not be able to add this rider.

The Disability Waiver of Premium is intended to waive the insured's premiums should he or she become disabled. Essentially, the insurance company will forgo future premiums while the insured retains the policy benefits. Remember though, there is usually a waiting period of 90 days.

The disability waiver feature differs from company to company, but often expires at age 65. The one major caveat is that most insurance companies change the definition of disability to "Any Occupation" after two years. Under this definition, total disability means not being able to work in any occupation. Therefore, if the insured is a computer consultant and their disability prevents them from working at their primary occupation, but they can still work as a checkout clerk at a grocery store, they won't receive a cent. Still confused? You can find a more comprehensive explanation of disability definitions here.

The Disability Waiver of Premium is intended to waive the insured's premiums should he or she become disabled. Essentially, the insurance company will forgo future premiums while the insured retains the policy benefits.

Given the limitations of the Disability Waiver of Premium rider, the applicant is far better off looking at his or her disability insurance through a more holistic lens i.e. the insured should have an adequate amount of disability insurance to protect the needed percentage of his or her total income. It's usually recommended that the insured cover anywhere from 50%-66% of their total income. That income, which is tax free (assuming the premiums are paid with after-tax dollars) can then be used to pay for food, household and other related expenses, including the insured's insurance policy.

The one exception to this rule is applicants with high-risk occupations. On traditional disability policies, landscapers have a higher-risk occupation than physicians and pay a much higher premium. But, with the Disability Waiver of Premium, the risk charge is the same for both occupations. In this instance, it makes sense if traditional disability insurance is unaffordable because something is better than nothing.

You can get a free disability insurance quote at our Disability Instant Quote Page, or contact us at 1.866.899.4849 for more information. 

RBC Insurance Announces Updates to the Simplified EDGE Disability Plan

RBC Insurance underwrites the Edge product line and recently announced exciting updates to its Simplified EDGE Disability Plan.

The most significant update is a New Executive Class.

The Edge offers a very simple application process for applicants who don't want to go through all the medical and financial requirements of a traditional disability insurance application. The plan previously had four application classes: B, BB, A, AA. "B" being the lower classification given to high-risk occupations like sand blaster and roofer, which will pay a higher premium. The "AA" classification is for low-risk occupations, such as speech therapist and office manager.

The New Executive Class has rates that are at least 10% lower than the "AA" classification and applies to occupations such as radiologist, lawyer, physician and surgeon.

To get a free personalized quote visit our Disability Insurance Instant Quote Page or contact us at 1.866.899.4849.

Hot New Equitable Life Term Rates

Equitable Life re-priced its Term 10 and Term 20 policies, effective July 1, 2009. Equitable Life has been providing life insurance to Canadians since 1920 and its one of the few insurance companies that's still a mutual insurance company, i.e. one owned by the policy holders.

Equitable Life isn't stopping at changing their term rates; it's also introducing a sixth rate band for policies in excess of $2,500,000. Rate bands are issued to give a cost per thousand discount for higher amounts of coverage. Insurance premiums are not generally linear, i.e. a $500,000 policy costs less on a per thousand basis than a $250,000 policy.

Most insurance companies have rate bands at $50,000, $100,000, $250,000, $500,000 and $1,000,000. Equitable Life's Band 6 makes it an ideal insurance company for high-networth clients looking to purchase larger term policies.

Equitable Life also introduced a conversion privilege within its Term 10 policy, which allows the insured to covert not only to a permanent plan without a medical, but from a Term 10 to a Term 20 policy within the first five policy years without a medical.

Below is pricing for the top three companies in Canada for a 40-year-old male, non-smoker for $500,000 of Term 10 and Term 20 coverage, as of July 23, 2009. Equitable Life is currently ranked #1 in Canada.

$500,000 Term 10

Equitable Life:              $35.55/month

Canada Life:                 $36.45/month

RBC Insurance:             $36.90/month

$500,000 Term 20

Equitable Life:              $62.55/month

Canada Life:                 $63.45/month

BMO:                           $63.90/month

You can get a free quote at our Term Insurance Instant Quote Page or contact us at 1.866.899.4849.

Swine Flu and Life Insurance

  The antigenic shift of swine flu
from pigs to humans.
image courtesy
U.S. National Institutes of Health

Currently, the Public Health Agency of Canada reports that 10,890 Canadians have been diagnosed with the H1N1 Influenza, more commonly referred to as Swine Flu. This has led to 53 confirmed deaths and the unfortunate distinction of being the country with the highest number of confirmed cases per capita in North America.

With that title, the insurance industry couldn't help but take notice. The onset of the virus has not caused a change in pricing, but many insurance companies have issued underwriting guidelines for applicants who have contracted the disease.

While Swine Flu is not directly mentioned on any current life insurance applications, the diagnosis can be revealed through indirect questions. Virtually all applications ask when was the last time the applicant visited the doctor and ask the applicant to provide the reason for the visit.

Applicants that carry Swine Flu generally fall into three categories:

Applicants who currently have the virus: Most insurance companies will not cover someone with Swine Flu. Some non-medical applications may be an option for those who want immediate coverage.

Applicants who were diagnosed, but not hospitalized: These applicants can generally qualify for traditional life insurance, but most insurance companies will want to see that the insured is free of symptoms and complications for at least three months.

Applicants who were diagnosed and hospitalized: Underwriting decisions can vary dramatically depending on the severity of the treatments. At a minimum, most life insurers will want a period of stability up to at least one year. The insured may have to get reinsurance as well. A reinsurance company shares the risk of an insurance policy with the original insurance company.

Underwriting requirements may very well change as more information on the H1N1 Influenza virus (Swine Flu) is released to the public. My article on Life Insurance and Underwriting may also be helpful. 

Feel free to contact us at the office, 1.866.899.4849 if you have additional questions.

Understanding Injury Only Disability Insurance

Injury Only coverage is
inexpensive disability protection.
image by sarah may scott

Disability insurance is generally divided into two broad categories.

There are policies that cover both injury and illness related disability, but there's also Injury Only policies that provide coverage for disabilities caused just by injuries.

The World Health Organization estimates that of the 600 million people living on the planet with disabilities, 25% have disabilities due to injury, while the remaining 75% are due to illness. Since Injury Only disability insurance covers a generally smaller percentage of potential disabilities, the premiums are often much cheaper than policies that include potential disabilities caused by illness.

One advantage of Injury Only coverage, is that it generally does not factor in the insured's overall health because a healthy person does not have a more significant chance of being injured than an unhealthy person. Injury Only disability insurance premiums are more heavily impacted by the insured's occupation, i.e. a landscaper would pay higher premiums than a lawyer or a pharmacists.  

Below are examples of pricing for an Injury Only and Injury and Illness Disability coverage for a 45-year-old male, non-smoker who is considering $3,000/month in disability coverage with a 30-day elimination period and a five-year benefit period.

The cost of RBC Insurances's Injury Only coverage called, The Edge (the leading provider of Injury Only insurance) is $29.25/month.  * However, illness-related coverage would include the added cost of $107.64/month.*

*The above rates assume an AA classification, which is the best classification for The Edge disability product line and is usually limited to professionals like lawyers, executives, doctors and other low-risk occupations.*

You can get a free online quote for disability insurance at our Disability Insurance Instant Quote Page or contact us at 1.866.899.4849.

Top Canadian Life Insurers 2008

Business Graph by Balazs Gal

This June, National Post Business released its list of the top 20 Candian life insurers and mutual fund sellers of 2008. Topping the list is Great-West Lifeco Inc. with $33,932,000 in revenue, $30,007,000 in premium revenue and $1,453,000 in profits. If you want to know the secret to its success in its own words, check out LSM's other article this week, The Strength and Stability of Great-West Lifeco.

The only place where Great-West Lifeco Inc. falls short is in the assets category. Its $130,074,000 is handily overtaken by the $187,500,992 in assets from Manulife Financial Corp. In third place, Sun Life Financial actually beats Manulife Financial Corp. in profit by $300,000 with $857,000, compared to Manulife's $517,000. On the losing end, Transamerica Life fell to 13th place, posting only $430,344 in revenue and $428,810 in premium income. This was the industry's largest loss of the year. Still, Blue Cross Canassurance Group did only just enough to make the list. This despite being named one of Alberta and Winnipeg's top employers of 2008 by the Calgary Herald, Edmonton Journal and Winnipeg Free Press, respectively. Find out whether your life insurance provider made the list below: National Post Business Top Life Insurers of 2008

                              Revenue       Premiums       Profits          Assets

GreatWestLifeco $33,932,000 $30,007,000 $1,453,000 $130,074,000

Manulife Financial$33,003,000 $23,252,000  $517,000  $187,500,992

Sunlife Financial  $15,563,000 $13,587,000  $857,000   $119,883,000

Industrial Alliance  $4,465,000   $4,282,000    $75,000   $15,415,000

Desjardins            $2,891,100   $2,868,400    $34,500    $13,759,200

Standard Life        $1,780,340   $1,269,323    $2,180      $16,366,753

SSQ                        $1,529,700   $1,411,300    $25,800    $2,307,500

RBC Life Insurance $1,285,577   $895,785      $110,078   $5,205,006

La Capitale C.S.M.   $1,027,563  $1,005,795    $39,420     $3,035,869

The Cooperators    $748,246     $634,335      $46,950      $2,469,031

Empire Life             $688,378     $686,178      $48,370      $3,746,806

BMO Life Assurance  $565,424  $251,399      $45,777      $3,101,347

Transamerica           $430,344   $428,810       $583,368    $6,460,035

Forresters                $377,891   $72,752        $197,126    $6,200,562

Equitable Life          $300,051   $294,132       $30,508      $1,131,834

Green Shield              $296,239    $297,414      $12,390      $313,926

The Cumis Group        $277,631   $186,550      $17,209      $803,091

Primerica                    $268,100   $191,717       $63,071      $531,736

Transfers Guarantee       $210,785  n.a.           $41,348      $795,715

Blue Cross Canassurance   $190,994   $30,295   $11,094    $312,847

Comparing Life Insurance Rates for Men with Rates for Women

Your insurance rates
could be vastly
different from your spouse's.
image by Ian MacKenzie

All things being equal, insurance rates for women are much less than they are for men.

The reason for this is the average woman in Canada lives to age 82, while the average man lives to age 77, according to Statistics Canada.

Other variables, beyond age, that impact price include, the applicant's health, smoking status and lifestyle or occupation risks.

The chart below indicates the difference between insurance rates for men and women under a variety of plans from the leading insurance companies in Canada (plan definitions follow the chart):

40-year-old male, non-smoker @ $500,000

Equitable Life:          $35.55/month - Term 10 @ $500,000

                                $52.55/month - Term 20 @ $500,000

Industrial Alliance: $114.75/month - Term 30 @ $500,000

Assumption Life: $230/month - Universal Life Term 100 @ $500,000

Manulife:    $391.84/month - 20 pay insurance @ $500,000

40-year-old female, non-smoker @ $500,000

Equitable Life:        $25.65/month - Term 10 @ $500,000

                              $43.55/month - Term 20 @ $500,000

Industrial Alliance: $83.20/month - Term 30 @ $500,000

BMO Insurance: $182.83/month-Universal Life Term 100 @ $500,000

Manulife:            $323.86 - 20 pay insurance @ $500,000

Term 10 premiums are level for ten years

Term 20 premiums are level for twenty years

Term 30 premiums are level for thirty years

Universal Life Term 100 premiums are level and payable for life

20 pay insurance premiums are level and payable after 20 years. The insured is then covered for his/her lifetime with no further payments.

You can get your own personalized quote by visiting our free Instant Quote Page, or contact us at 1.866.899.4849 for more details.

The Strength and Stability of Great-West Lifeco

Great-West Lifeco is an international financial services holding company that deals in life insurance, health insurance, retirement savings, investment management and re-insurance. Their operations are divided into Great-West Life, London Life, and Canada Life. They have a combined $333 billion in assets under management.

While everyone else is suffering financially this year, Great-West Life just announced that they're remaining strong and stable despite a decline in earnings. Great-West Lifeco reports a first quarter net income of $208 million, compared to $249 in the first quarter of 2008.

Despite this small loss, they were still able to garner a return to their shareholders of 16.2% for the 12 months ending March 31, 2009 and bring their quarterly common divdend to $0.3075/share, (5% higher than last year) putting them among the top performers of the Canadian financial sector.

Great-West Lifeco's balance sheet is one of the strongest in the industry, with a high-quality bond portfolio that's 99% rated investment-grade.Their subsidiary, Great-West Life, reported a Minimum Continuing Capital and Surplus Requirements (MCCSR) ratio of 205% as of March 31, 2009.

During the first four months of 2009, four major credit agencies (A.M. Best, Moody's Investor Service, Standard and Poor's Ratings Services and Fitch Ratings) re-affirmed Lifeco's credit rating with a stable outlook, despite the current economic outlook.

You can view their most up-to-date ratings on their public websites, including Great-West Lifeco's website.

Declining Fees on Money Market Segregated Funds

The recent dip in interest rates has forced insurance companies to re-visit the management expense ratios they're charging on their segregated fund lineup. With interest rates at all-time lows, this is wreaking havoc on the returns on Money Market Funds and, in some instances, could force negative returns.

Recently, Empire Life and Standard Life announced they're reducing their management fees on their segregated money market funds. These changes commenced in April 2009.

The management fees on Standard Life money market funds are now 0.4% for their Ideal 75/100 Series and their Ideal 100/100 Series, as reported by the Insurance Journal. Previously, these funds had management expense ratios of 1.2% and 1.5% respectively.

The Insurance Journal also reports that Empire Life has reduced its fees on Series "A" money market funds from 1% to 0.47%. The change is in effect until October 30, 2009.

Group Disability Insurance in Canada

Group benefits for emplyees.
photo by Lindsey Lissau

According to Advocis, the Financial Advisors Association of Canada, over eight million Canadians have group disability insurance. With this type of disability policy, a whole group of people is covered, rather than just an indvidual - the bigger the group, the greater the sharing of risk.

There are no added features to group disability insurance and no individual assessment. The insurer will determine the premium rates based on the type of work the group does. They will also evaluate the claims, experience and age of those applying for coverage under the plan. The exact type of coverage is negotiated between the insurance carrier and the employer. Depending on the employer, they may offer short-term and long-term plans, but the majority just offer long-term plans. Group rates are typically negotiated on an annual basis and usually increase depending on the number of claims in the previous year.

After the first two years, the definition of disability often changes to mean that the insured cannot work in "any" occupation. Therefore, if you are a computer consultant and your disability prevents you from working your regular occupation, but you can still work as a checkout clerk at a grocery store, you will not receive a cent.

In group disability plans, there is usually a clause that will cover the insured for the first two years they are unable to work in their chosen occupation classification. This is called a "regular" occupation. However, after the first two years, the definition of disability often changes to mean that the insured cannot work in "any" occupation. Therefore, if you are a computer consultant and your disability prevents you from working your regular occupation, but you can still work as a checkout clerk at a grocery store, you will not receive a cent. Still confused? Get a further explanation of disability defenitions here.

One major drawback of group disability insurance is when the coverage ends. Your coverage will expire under the following conditions:

1. If your employment is terminated

2. If you retire

3. If your employer discontinues your employee benefit plan.

RBC Insurance has a hybrid group/indvidual disability plan referred to as Guaranteed Standard Issue. The plan has no medical underwriting, but applicants can keep their plan once they leave the group. You can get more details here.

Employees may be able to top up their group disability coverage with an individual plan. Individual disability plans also allow applicants to add riders like cost of living adjustment, or a future insurable rider, which allows the benefit to keep in line with inflation and increase the disability policy without a medical.

However, there is one caveat. Most insurance carriers will only cover up to 50-60% of the insured's net income and the percentage lowers depending on how high their income actually is, e.g. If the insured makes $200,000/year, they may only be covered for 40% of their net income.

You can get a free online disability quote at our Disability Instant Quote Page. 

Exciting Changes to Empire Life’s Universal Life Plan

Empire Life announced increases in the minimum guaranteed interest rate in its Universal Life policies it coined Trilogy and Trilogy Plus. The increase will be on its 20-year guaranteed interest option within the Trilogy and Trilogy Plus plans, for deposits or transfers after June 30, 2009.

Interest rates will increase from 2.625% to 2.825%. On the surface, that may not sound like such an aggressive increase, but combine that with Trilogy's 1.2% policy bonus and Trilogy Plus's 1.5% policy bonus, giving you a total interest rate increase of 4.375%.

Considering historically low interest rates, and the fact that extra deposits in the account can grow on a tax sheltered basis, the after-tax rate of return is a very attractive feature to risk adverse applicants. 

Interest rates will increase from 2.625% to 2.825%. On the surface, that may not sound like such an aggressive increase, but combine that with Trilogy's 1.2% policy bonus and Trilogy Plus's 1.5% policy bonus, giving you a total interest rate increase of 4.375%.

Below is an example of how the 4.375% guaranteed interest rate would benefit clients who are looking for a guaranteed investment with their Universal Life policy:

A 45-year-old male, non-smoker applying for $250,000 of Universal Life Trilogy Plus coverage, with a level cost-of-insurance, would have a minimum premium of $182.13/month. At this premium, the applicant's cost-of-insurance never increases. If the individual wanted to put in funds beyond the minimum premium, and had a policy which could be paid-up in a limited number of years, they could add to this premium. An extra $93.26/month (pushing the total premium to $275.39) invested at the guaranteed interest rate of 4.375% would provide a cash value of $36,667 after 20 years.

The cash value would be sufficient to offset future premiums for the insured's lifetime. As an added benefit, if the insured were to pass away prior to the cash value being depleted, the remaining amount would be paid on top of the original $250,000 to the beneficiary. 

You can get a free online Universal Life quote from our Universal Life Instant Quote Page.

Universal Life Insurance: Demistifying Costs of Insurance Options

There are many advantages
to Universal Life

Universal Life insurance offers many advantages when compared against other permanent insurance policies.

In particular, when compared with Whole Life, Universal Life allows the applicant to unbundle the investment component of the policy. On Whole Life policies, the investment component is built into the policy and premium. With universal, the investment component is seperate - premiums can increase or decrease.The applicant can also choose between a level and increasing death benefit. Most Universal Life policies offer a myriad of investment options. BMO Assurance Company (Formerly AIG Insurance) offers over 400 investment solutions in its Universal Life plan, ranging from guaranteed investments, like GICs to, higher risk, specialty mutual funds.

When compared with Whole Life, Universal Life allows the applicant to unbundle the investment component of the policy. On Whole Life policies, the investment component is built into the policy and premium. With universal, the investment component is seperate - premiums can increase or decrease.

The crux of any insurance product is the risk charge associated with the plan. This is where Universal Life can get confusing. Most insurance products have one risk charge, i.e.your premiums are level for a specific term or for life. Universal Life insurance allows the applicant to choose between different risk charges. Some companies even allow the applicant to segment the policy into different risk charge components. There are generally four "cost of insurance" options on a Universal Life policy. The following is a snapshot of how each work:

1. Increasing Cost of Insurance: On this option, the charge starts very low, but increases on an annual basis until age 100. The advantage here is that the cost of insurance is very low in the intial policy years, which allows the applicant to maximize the cash value in the early policy years. The disadvantage is that the cost of insurance becomes extremely high in the later policy years and if the underlying investment under performs, it may be insufficent to carry on the coverage.

2. Level Cost of Insurance: With this option, the cost of insurance is based on Term 100 costs, i.e. the cost of insurance never goes up as the insured gets older. The advantage of this option is cost certainty for the insured (always knowing exactly how much it will cost). The disadvantage is the intial cost is much higher so the cash value isn't as significant in early policy years.

3. A Hybrid Insurance: Many insurance companies offer this option, which includes an increasing cost of insurance with the option to switch to a level cost at a certain point and time. This hybrid scenario is designed for people who want to maximize their cash value in the early policy years, but prefer to have cost certainty in their policy in later years.

4. A Limited-pay Insurance: In recent years, insurance companies have introduced a Universal Life policy with a Limited-pay option. These policies are based primarily  on a non-participating Whole Life plan, i.e. the cost of insurance can be paid-up in 10, 15, or 20 years. Many huge national insurance companies are now offering this type of plan including, Manulife, Canada Life and Industrial Alliance.

Remember, you can get a free Universal Life Quote at our Universal Life Instant Quote Page, or contact us at 1.866.899.4849. 

Health Insurance: A Challenge for Obama

Health Care Rally by Neil Parekh

Remember the McCain and Obama health care plan battle? The main difference between the two plans was primarily the candidates' stand towards the employer -based health care insurance. McCain's core aim was to get people to switch from the employer-based system to individual plans by taxing the employer-based health insurance benefits and providing tax credits to individuals ($2,500) and families ($5,000), offsetting the purchase of an individual health care plan. Obama on the other hand had the opposite agenda - to get even more people into the employer-based system. Medium and large companies would be required to either offer a health care coverage or they would have to pay extra tax in order to contribute to public insurance plan ("pay or play").

Obama's program

Since the presidential campaigns are long gone and only Barrack Obama will get the chance to implement his program (in this presidential term anyway), let's have a look at his health care reform in more detail.

The proposed reform was build around three main issues:

• Health coverage for all

• Lowering cost and improving the quality of the US health care system

• Prevention: strengthening the public health

Let's focus on the first goal. This is probably the most important feature of the proposed system. There are already various state-run programs that are supposed to provide some kind of health insurance to those unable to buy private insurance - typically the elderly, disabled or poor. Medicare (for those over 65 years of age), Medicaid (for poor/very poor, disabled), SCHIP (for children) or various veteran programs are the most noted. The trouble with those programs is that there are still millions of Americans left without any insurance at all. For example, about 60% of poor Americans are not covered by Medicaid. When those without an insurance get sick eventually, they wait until the later stage of the illness before seeing a doctor. The treatment is then more expensive than if the illness was taken care of in the earlier stages. This increased cost is of course paid by raising premiums of those properly insured.

Obama's aim is to create another public program similar to Medicare that will be available to cover all those with no access to any other already existing option (the employer-funded plans or government programs). And this is where Canada comes into it: the Canadian health care system is often used as an example by both the proponents and opponents of the Obama's reform. While the first group usually emphasize the lower cost, fairness and the accessibility of the Canadian system, its opponents generally come up with repetitious misconceptions, which I will now try to address.

US misconceptions;

So what are the most cited misconceptions of the Canadian health care system?

The Canadian health care system is too expensive - way more than the US system.

First of all there is this cost-related myth. It is often claimed that the Canadian system is more expensive than the US system, but in fact while Canada spends only 10% of its GDP, covering 100% of its population, the USA spends over 15% GDP, while at least 15% of the population is not covered at all and even more are people left with not enough coverage. For example in 2005, the US spent US$6,401 per capita on health expenditures - that's almost twice the sum spent in Canada that year - US$3,359.

In Canada, it's up to the government to decide who gets the treatment.

Another repeated misconception is that the Canadian government makes the decisions on who gets health care and when. That's totally wrong: the only people making these decisions are in fact the doctors. Unlike in the US, where no matter what you doctor says - if your insurance administrator says you're not getting it, then that's it.

The plan only covers the bare basics, so you end up paying a lot on any extras anyway.

Every province has its own rules concerning what is and what is not covered by the public health insurance. But mostly it's all the doctor's fees, tests, everything that happens in the hospital. It usually doesn't cover the medical equipment, dental and vision care and other extras. But since all the costly items are covered and these extra charges are quite predictable, there's number of private insurance plans like Manulife's FlexCare Program available, offering low premiums that take care of their extra expenses. All in all, you end up having access to any treatment you might need, paying much less for the public & additional health insurance combined than what the Americans has to pay for the same level of access.

It takes ages to get treatment in Canada. In fact, Canadians rather travel to the US for their treatment.

If you need some kind of specialist treatment, you might wait a few weeks or up to a month, and for selective surgery the waits are even longer. But if you need an urgent treatment, you get it fast. No matter if you're poor or rich. If you need your treatment fast and it for some reason it isn't available at the moment when you need it, you might be sent to the US, but that is also covered by your insurance! Only those Canadians who pay out of pocket for their treatment in the US wish to get the treatment faster than their doctor finds necessary.

In Canada, the doctors work for the government. And the government picks the doctor for you!

Nope… the doctors do not work for the government. The doctors have, just like in the US, their private practices, and only have to deal with one insurer, which is the provincial government. And of course you can pick the doctor yourself.

10 Ways to Become a Top Insurance Broker

Go inside the insurance business to see what it takes to become a successful broker. Push your business to the next level with the 10 tips in our Broker's Section.

Mortgage Disability Insurance vs. Indvidual Disability Insurance

disability insurance by Joe Hall

It goes without saying that Mortgage Disability Insurance is linked to your Mortgage. Most lending institutions tie this type of insurance in with their existing mortgage life insurance plans.

On the surface Mortgage Disability Insurance may seem like a good idea, but it has several limitations.

Lorne’s Comment: RBC Insurance Announces Paperless Express Claims

RBC Insurance is pleased to announce a simplified process for life claims.

Express Claims is a new service RBC Insurance is offering clients that will help speed up the proces life claims up to $25,000.

How Does it Work?

As long as the policy has been inforce for 5 years or more and has a named beneficiary, (policies listed with an estate are not eligible) there is no paperwork required. All we need to process the claim is:

• A simple phone call advising us of the date of death.

• The contact information for the funeral home.

Why the change?

With this new, client-friendly approach, we'll be able to pay those claims within five business days, an 85% efficiency [improvement] compared to last year. This will allow us to focus our more experienced resources on adjudicating larger claims that require more investigation while providing superior service to all clients. 

Lorne's Comment:

This is great news for brokers and clients. It insures the beneficiary will receive his/her money fast, without the headaches. It would be terrific if the face amount on Express Claims was extended beyond $25,000.

Understanding Limited-pay Whole Life Insurance Plans

It's important to understand
limited pay before you sign on.

Limited-pay Whole Life insurance plans provide guaranteed level premiums, lifetime protection and the policies are guaranteed paid-up after a limited number of years.

Unlike other permanent life insurance policies, which allow for a quick pay option, limited-pay policies are fully guaranteed i.e. the payment period will not vary depending on the underlying investment performance. A Universal Life policy with an underlying equity investment might project a pay period of 15 years, but if the markets tank, the insured may have to pay for up to 25 years. This element of risk is eliminated by a Limited-pay Whole Life policy.

Limited-pay policies are fully guaranteed i.e.the payment period will not vary depending on the underlying investment performance.

Limited-pay policies can be non-participating or participating. Participating policies pay a dividend. The dividend can be used to increase the death benefit of the policy, which gives the insured a hedge against inflation. Participating Whole Life  policies are generally more expensive than non-participating ones. The payment period on a Limited-pay Whole Life policy can be anywhere from 10, 15 to 20 years, or even until age 65. Unity Life has a unique Limited-pay Whole Life Plan called Life Option Enhanced, which allows the insured to select the pay period for the policy.

The following is a snapshot of the top five non-participating, 20-year-pay Whole Life policies with $500,000 of coverage for a 40-year-old male, non-smoker:

Manulife:      $391.84/month

Empire Life:  $423.00/month

Desjardins:   $428.40/month

Wawanesa:   $476.10/month

Union of Canada Life: $488.77/month

It should be noted that the guaranteed cash values in Limited-pay policies can also vary dramatically between companies. In the above example, Manulife's guaranteed cash value at the end of 20 years is $61,000, whereas Empire Life's guaranteed cash value following the same length of time is $103,000.

You can get a Limited-pay Whole Life insurance quote at our free Whole Life Instant Quote Page, or you can call us at 1.866.899.4849

The Best and Worst Term 10 Policies in Canada

Save money with the
best Term 10 plans in Canada

Term 10 life insurance can seem like very basic and straightforward coverage. In the purest sense, Term 10 means level premiums for ten years and a level death benefit.

Most policies also have a guaranteed renewal ability that allows the insured to renewal their policy without a medical.

TIP: Buy  policies with a renewal benefit.

Premiums vary sharply from one company to another. Most term policies are guaranteed convertible, meaning they can be converted to a permanent plan without a medical.

TIP: Look into the permanent plans that the term provider offers. Some companies have a conversion feature, but only a limited number of highly priced permanent plans.

Many Term 10 policies in Canada have special features; these are features that are above and beyond the normal Term 10 contract.

For example, AXA Assurance has a built-in extreme disability benefit that pays the insured up to 50% of the face amount of the policy in the event of extreme disability, up to a maximum of $250,000. The extreme disability must occur prior to age 60.

Unity Life has several built-in special features, including a $4,000 critical illness benefit.

Manulife allows the insured to add a children's term rider at very low cost, which allows children under the policy to upgrade their policy up to 25 times the original face amount without a medical.

The following is a comparison of $500,000 of Term 10 coverage for a 40-year-old male, non-smoker. Notice that the top three premiums are relatively close together, but the bottom three have huge gaps in pricing.

Equitable Life $35.55/month

Canada Life $36.45/month

RBC Insurance $36.90/month

The Cooperators $42.75/month

Assumption Life $57.75/month

Union of Canada $71.31/month

Unique Life Insurance Benefits

Unity Life, a Foresters company, offers five unique value-added benefits to all of their policyholders. This includes all of their policies issued under the Unity Life umbrella, the Forrester's umbrella, along with their Canadian Protection non-medical plan.

These policies include the following benefits:

1. Critical Illness Member Benefit                                    If the member or someone in their immediate family is diagnosed with a critical illness, such as cancer, heart attack, stroke or Multiple Sclerosis, they may be eligible for a $4,000 grant. However, it does not cover pre-existing conditions and there is a 24-month elimination period.

2. Terminal Illness Member Benefit                                       An interest free loan is available to the insured if they become terminally ill. To be terminally ill, there has to be a reasonable certainty of death within the next 12 months, as determined by a medically qualified physician who can provide medical proof to the satisfaction of Foresters. The total loan can be 75% of the net face amount, up to $250,000. Unlike other carriers, there is no interest charged on the loan and the loan isn't limited to 50% of the total face amount. However, there is, once again, a 24-month elimination period on this benefit.

3. Young Member Benefit                                                       This benefit insures the ongoing care and maintenance of the insured's children, especially if something were to happen to them or their spouse. The legal guardian receives $300/month for each child up to the time the children turn 18 in the event they lose both parents. 

4. Competitive Scholarship Member Benefit                     This benefit gives young people a head start in life. Unity Life awards up to 350 renewable scholarships across North America. Each scholarship is $2,000/year for a maximum of four years and can aid in easing the cost of higher learning.

5. Orphan Scholarship Member Benefit                                If the insured's children lose one or both parents, each child may be eligible for a $6,000/year scholarship for a maximum of four years, so they may pursue their studies without worrying about as much of the financial burden as they would otherwise.

When Whole Life Insurance is Not a Good Idea

Don't pull your hair out
over Whole Life

Whole Life insurance offers fixed premiums, lifetime protection and the ability to have a paid up policy in a limited number of years, i.e. you're still covered, but no longer have to pay. Whole Life plans also allow you to accumulate a cash value on a tax sheltered basis. Given these benefits, Whole Life insurance is a terrific fit for many clients. However, in the following situations, Whole Life insurance is inappropriate:

1. When you have a temporary need for life insurance. There are many instances when you may only want life insurance for a short period of time, potentially to cover a business loan and/or line of credit. In these cases, Whole Life insurance isn't a good idea because you would be paying higher initial premiums in exchange for premiums that remain level for life. If the policy is only needed for 5 years, you will no doubt be overpaying. The situation compounds itself because few Whole Life policies have any cash value in the first five years. Ultimately, you will be spending a lot of money for very little benefit.

2. When you're on a limited budget, but still have a large need for insurance. This can apply to a young couple with a limited budget. I remember meeting with a young couple; the husband was a bus driver and the wife was a stay-at-home mom. They had a mortgage and twin 3-year-old boys, so the need for insurance was significant, but they had a very tight budget. Unfortunately, their allotted insurance money was going towards a $500,000 Whole Life policy. It was a good policy, but a bad fit. You can find the right fit for your own budget with our free, online Needs Analysis Calculator.

3. Clients that want a stripped-down version of life insurance. Some clients know exactly what they want--a bare bones life insurance policy for a stated term. In this instance, your answer is pretty straightforward, pick a term policy with an affordable premium from a reputable company. You should also make sure the policy you settle on is renewable and convertible. This will allow you to convert or renew your term policy without a medical, just in case circumstances change and you decide you need coverage beyond the stated term after all.

You can get a free instant quote for Term insurance at our Term Insurance Instant Quote Page and a Whole Life insurance quote at that corresponding Whole Life Instant Quote Page. If you have any other questions, please don't hesitate to contact us at 1.866.899.4849.

5 Tips for Buying Life Insurance in Canada

Make sure your
broker is independent

Buying life insurance is not something that should be taken lightly, especially when your family's financial future is at stake. There are so many things to keep in mind, but we've broken it down to the five essential tips so that you don't have to wander through the Canadian life insurance market without a compass.

1. Make sure the insurance advisor you're working with is truly independent. Many insurance companies employ a captive sales force e.g. Primerica, State Farm and Cooperators employ agents that only sell their particular products. In many instances, their premiums are completely incompetitive. An independent broker has the ability to shop the marketplace for the best possible value. Make sure you work with a broker who has access to a variety of carriers, not just two or three.

2. Make sure your policy does not have any exclusions. Many life insurance policies are issued with travel and recreational exclusions such as flying or scuba diving.

3. Make sure you're buying the right amount of life insurance. The first and most important step in buying a life insurance policy is determining the right amount of coverage for you and your family. You can find this information quickly and easily with our Needs Analysis Calculator.

4. Is the insurance company a member of Assuris? Assuris covers policy-holders under member companies for up to the greater of $200,000 or 85% of the face amount of your insurance policy in the event your insurance company becomes insolvent. With the current economic situation, it's no secret that in the 21st century even the largest, most reputable companies can be subject to financial failure. So far in Canada, three insurance companies have gone bankrupt:

• Les Cooperants on Jan. 3, 1992

• Sovereign Life on Jan. 18, 1993

• Conferation Life on Aug. 11, 1994

In each of these instances, Assuris was called upon to deal with the insolvency. Founded in 1990, Assuris is a non-profit organization that protects Canadians in the event their insurance company fails. Through the three insolvent cases above, Assuris has protected almost 3 million people-representing 10% of Canadians.

5. Are there any hidden costs or fees? Group Life policies and Creditor Insurance charge sales tax on top of your base monthly premium.

Whole Life Insurance Myths

Don't get frustrated
about these myths

People have a lot of reasons for not purchasing Whole Life insurance, but at the end of the day, the majority of reasons are just myths. Below, you'll find the most common myths people hold onto and the real truth behind them:

Whole Life policies are a rip-off. I would be better off buying Term and investing the difference. This myth comes from talk shows and magazines looking for a quick, bite-size answer to a complex question. There are many components a person must analyze when purchasing life insurance, including determining the right amount of coverage.

Whole Life policies are very expensive. Whole Life policies are more expensive than Term policies, but premiums vary sharply from one carrier to another. Case and point, $100,000 of non-participating 20-year pay Whole Life coverage for a 26-year-old, male non-smoker is $49.23/month with Empire Life and $71.55/month with BMO. You can get an instant Whole Life Quote at our free Instant Quote Page.

I cannot access the cash value within my Whole Life policy. Non-participating Whole Life policies have a guaranteed cash value, which the policy owner can borrow, (usually up to 90% of the value) whereas participating cash values have a dividend value, which can be taken in cash or borrowed. They also have a guaranteed cash value.

Whole Life policies lack the flexibility of Universal Life coverage. Most participating Whole Life carriers now allow you to choose a variety of investment options, including accounts linked to equity based investments. Whole Life sales in Canada have been increasing in recent months. In fact, Limra International recently reported that Whole Life sales in Canada increased by 13%.

I have to pay my Whole Life policy for life. Whole Life policies offer coverage for life, but virtually all Whole Life plans have a quick pay option.  You can have the coverage for life, but the premiums can be paid up in a limited number of years. If we look at the example of the 26-year-old, male non-smoker again, he will have contributed $11,815.20 over 20 years and then the policy is paid up for life.

Canada Life Return of Premium Disability Plan

Founded in 1847, Canada Life is one of Canada's oldest and most reputable insurance providers. A leader in the disability market, they offer disability insurance plans for blue collar workers, professionals and business owners.

The Return of Premium feature ensures that you receive a benefit whether you have a disability or not. It provides 50% of the yearly eligible premium paid away on the policy on certain dates.

Their flagship plan, The Lifestyle Protection Plan, is geared toward professionals and allows you to customize the features and riders on the policy to your own insurance needs and budget. Their most popular rider is their Return of Premium feature.

The Return of Premium feature ensures that you receive a benefit whether you have a disability or not. It provides 50% of the yearly eligible premium paid away on the policy on certain dates. If you are not disabled, and claims haven't exceeded 20% of the eligible premiums that were paid or waived.

Return of Premium eligibility is contingent on seven consecutive policy year periods that do not overlap. The benefit may also be paid upon death, or the policy anniversary nearest to your 65th birthday.

Below is an example of the Lifestyle Protection Plan, with a Return of Premium rider for a 40-year-old, male office manager with a $5000 monthly indemnity, a 90-day waiting period and an age 65 benefit period. The only rider selected is the Return of Premium rider.

The quote below also assumes an occupation class of four. Occupation classes are determined by the occupation risk of claim, with one being the highest risk and five being the lowest. The base premium is $144.86/month and the cost of the Return of Premium Benefit is $60.84/month, so the total monthly premium is $205.70/month.

The first Return of Premium would be at age 47 and then every seven years thereafter. The plan ends at age 65.

Age 47 $7,971.88

Age 54 $7,971.88

Age 61 $7,971.88

Age 65 $4,555.36

We can customize a disability insurance plan for you through our Disability Quote Page, or call us at 1.866.899.4849

Banks Can Still Do Some Magic Tricks

TV, Internet, newspapers, and discussion with neighbours – economic issues become everyday part of our lives. The main actors in this play are big financial institutions and national governments. The financial world has never been simple, but now it’s covered in thick fog.

The latest magic tricks have been uncovered by some experts like global investing expert Keith Fitz-Gerald. It’s important to say these “tricks” are not illegal or deliberately cloaked. Everything is legal and in line with legal rules, however, banks are not presenting them very proudly. You will understand why shortly.

Let me describe the situation to you. Few months ago, big banks didn’t survive the hard landing and simply – bankrupted. Wachovia Corp., Countrywide Financial Corp., National City Corp., Washington Mutual Inc. and some other. Some other big banks like JP Morgan, Bank of America or PNC have bought these decaying corpses for a very decent price (JP bought Washington Mutual for $1.9 billion).

Along with everything else, they also bought their toxic loans. And now the magician’s performance begins. They were allowed to mark these debts in the books to fair value during the purchase process. In JP’s case the value of toxic assets was cut down by 25%. This happened just a few months ago.

Now, the banks are ready to do just the opposite – as the economic situation calms down, debts are slowly being repaid. The difference between booked value and repaid money turns into profit. And since the book value has been kept very low, the profits are huge. And that’s not all – as bank see these debts can significantly appreciate in their lifetime (and they can), they are allowed to write up their (future) value in books no matter what the real situation is.

The result is simple. Just by changing few numbers on paper, banks are able to reap huge profits and make billion dollar changes on the balance sheet. However, the assets are exactly the same ones, marked as “toxic” a few months ago. So these profits and balance changes are just made up from thin air. This is what we saw at the beginning of the financial crisis – profits and asset values blown by skilled accountants. Now the banks are trying to overcome the current situation blowing the same bubble again.

Industrial Alliance’s Group Insurance Offering

Industrial Alliance has been offering group insurance since it's founding over 100 years ago in 1892 and is currently the 4th largest insurance company in Canada.

Their group plans are custom built to feature the following benefits:

Life Insurance

Various basic and additional life insurance coverage policies are offered to members and their dependents.

Disability Insurance and Disability Management Program

Short and long-term coverage guarantees an income in the event of disability. The services of specialists are also available to promote the recovery of members and their quick return to work.

Medical, Dental and Extended Health Care Expenses

A range of coverage providing for the reimbursement of health care expenses such as, prescription drugs, dental care, massage and chiropractic services.

Travel Insurance

Full coverage and emergency assistance, which covers the insured member while they travel.

Health Spending Account (HSA)

A health spending account provides full reimbursement for medical and dental expenses the member would otherwise have to pay.

Critical Illness Insurance

Provides the member and their family with the financial peace of mind they need to deal with their condition and focus on recovery.

Best Doctors

Best Doctors is the world's online leader in connecting people with top medical advice and care, thanks to its database of over 500,000 specialists in various medical fields.

Multi-national Pooling

Multi-national pooling is a system in which the benefit plans of different subsidiaries or divisions of the insurance company in other countries are pooled together into a single plan in order to reduce their risk charges.

BMO Affordable Term Life Solutions

BMO Life Assurance Company has recently tweaked its pricing on its term insurance line-up as it moved to conquer more of the Canadian life insurance market.

On April 1st, the former AIG of Canada became BMO Life Assurance. Its first distribution arm, BMO Life Insurance, which existed prior to the acquisition of AIG, is still their direct life insurance arm.

Despite what you may think, buying direct doesn't give you the lowest prices. In almost all instances, the plans offered by BMO's Life Assurance Broker Network are lower, and better yet, the brokers there are independent, free to go after the best price if BMO's company rates are out of line.

BMO Life Assurance is one of the only life insurance companies in Canada to offer Term 10, Term 20 and Term 30 life insurance products. These term plans are guaranteed renewable without a medical and guaranteed convertible to a full line-up of permanent plans:

• They offer multi-life discounts for two spouses with plans available on a joint-life basis.

• They offer a whole host of value-added riders, including a critical illness rider with base amounts as small as $25,000.

• Their critical illness rider also includes membership to Best Doctors, a resource featuring the best medical advice from around the world on the various critical illnesses you may be diagnosed with.

• The cost of an individual Best Doctors membership is $18.75/month, [as of April 21, 2009] so to have that built-in to the rider is a significant perk.

The following pricing chart shows examples of term 10, term 20 and term 30 plans with $250,000 of coverage for a 45-year-old, male non-smoker at a standard rate:

$250,000 of Term 10 coverage @ $31.05/month

$250,000 of Term 20 coverage @ $57.38/month

$250,000 of Term 30 coverage @ $104.85/month

You can also get a free no-hassle quote by visiting our Term Life Instant Quote Page.

If you have any other questions please don't hesitate to contact us at 1.866.899.4849.

High Cholesterol and Life Insurance

High cholesterol may put you in front of him,
but don't let it hurt your eligibility

Almost 48% of men and 43% of women in Canada have high cholesterol. With high cholesterol more and more common in Canada, insurance companies have started heavily considering it when evaluating life insurance applications for eligibility.

When combined with other health issues, high cholesterol is more likely to shut you out from life insurance, but you'll probably still be able to qualify if high cholesterol is your only health issue. However, rates vary widely from company to company and we can help you compare the rates of the top 12 carriers in Canada through our free online Rates Analysis Calculator.

Almost 48% of men and 43% of women in Canada have high cholesterol.

Keep in mind that while you will likely still be able to receive life insurance, your high cholesterol will not get you preferred rates. Preferred rates are reserved for those in very good health and those with a very clean family health history.

It's absolutely critical that you choose a broker who has experience selling to clients with high cholesterol and who can tell you the following five variables that insurance companies look for when evaluating a candidate with high cholesterol:

1. Height and Weight    

   High cholesterol often goes hand-in-hand with obesity and that combination will likely mean life insurance isn't an option. If you're only 30-40 pounds overweight, insurance can still be available to you, but with a rating (an extra premium because of the health issues).

2. Insurance Company  

   Each insurance company has its own unique underwriting criteria. Choose a broker that is absolutely aware of those individual requirements.

3. Total Cholesterol Readings  

   Total cholesterol readings above 6.0 (240 mg/dL) can be troublesome. Optimum health means keeping your LDL levels (bad cholesterol) below 129 mg/dL, your HDL Levels (good cholesterol) above 60 mg/dL and your triglycerides below 150 mg/dL.

4. Non-compliance 

   Not following your doctor's recommendations could mean you'll never qualify for life insurance.

5. Under 30

   High cholesterol under age 30 will be put under the microscope by the insurance companies because it's not as common among young people and often comes with more underlying health issues. 

If you've been rejected for traditional insurance, there can still be a silver lining and we can help set you up with a simplified issue or guaranteed issue plan that requires a limited number of medical questions, or none at all.

You can get a free Non-medical Life Insurance quote at our Instant Quote Page. You may also contact us at 1.866.899.4849 for more information.

Group Insurance: What Happens if I’m Double Covered?

With double coverage,
your spouse's plan has your back

When both spouses work outside the home it's almost certain that the couple is over-insured.

This happens when each spouse is insured through an employee group benefit plan at work, but they are also named as dependents on each other's respective plans. There's nothing to fear though, this problem is typically remedied by each insurance company coordinating the insured's benefits.

Coordination of Benefits gives insured individuals as much coverage as possible, while at the same time eliminating over-insurance. They do this by determining which insurance company will pay as the Primary Insurer and which will pay as the Secondary Insurer, with the provision stating that the insurer covering the employee who actually has the claim, automatically becomes the Primary Insurer. The primary company must pay as much of the claim as its payout limits allow.

Coordination of Benefits gives insured individuals as much coverage as possible, while at the same time eliminating over-insurance.

Confused? Let's clear it up with the following example:

Husband and wife Fred and Lilly work at separate companies, but have double coverage since they are each covered by their individual company's group plans and have named each other as dependents. If we assume that Fred incurs $1,000 in covered medical expenses resulting from an illness, by the Coordination of Benefits provision, his insurance policy becomes the primary. Fred's healthcare plan includes Major Medical Coverage and a $100 deductable, so the primary insurer (Fred's insurance company) deducts the amount (which Fred must pay) leaving $900. The primary insurer will then pay their portion of co-insurance. Assuming his insurance company calls for an 80%/20% split, the insurer with pay 80% of the $900 ($720), which leaves $280 unpaid (the $100 deductible and the leftover $180).

Fear not, this is where Lily's employee coverage kicks in. Her insurance covers Fred as a dependent, making it Fred's Secondary Insurer. The Secondary Insurer will pay everything the Primary Insurer does not, within their own policy limits. Therefore, (assuming Fred's remaining $280 is within those limits) Lily's insurance provider will pay the rest in full. Meaning, thanks to double coverage, Fred's expenses are fully reimbursed. However, he's still prevented from receiving more than his actual out-of-pocket costs.

Coordination of Benefits helps insurance companies keep their premiums in line, by insuring that no single individual is reimbursed more than 100% of the cost(s) of the services rendered, or benefits received.

If you need further help with your group benefits needs, please don't hesitate to contact us at 1.866.899.4849.

Life Insurance and High Blood Pressure

High blood pressure doesn't
just mean doctors

It's no secret that underwriters look at a variety of factors when determining the rates you pay, and that high blood pressure will impact your premiums, but the news doesn't necessarily have to be bad.

Not all insurance companies view high blood pressure the same way, which is why it's important to shop around for the best rates. We can help you do just that with our Free Instant Quote Page.

Though its unlikely someone with high blood pressure will get perferred rates, since those rates are given to applicants with excellent health and an equally impeccable family health history, you may still receive life insurance with a modified premium. You are likely to be denied only if your blood pressure condition isn't under control.

Not all insurance companies view high blood pressure the same way, which is why it's important to shop around for the best rates.

 (Life Insurance and High Blood Pressure continued...)

RBC Insurance’s Simplified Critical Illness Term 10 Plan

If the only thing preventing you from taking the plunge and purchasing critical illness insurance is a complex medical test, then your prayers have been answered.

Thanks to RBC Insurance, you can now get a CriticalIllness Policy without a medical exam.

RBC Insurance has just rolled out a simplified version of their critical illness program. Along with the feature of qualifying without a medical exam, the plan is available in $10,000, $25,000, $50,000 and $75,000 face amounts to applicants ages 18 to 50.

Guaranteed renewable to age 65, the premiums are set like a term 10 policy. They are level for the first 10 years and then increase with each subsequent 10 year period. However, RBC Insurance does have the option to change future renewable premiums.

The early assistance benefit means 10% of the critical illness benefit is payable if the insured is diagnosed with prostate cancer, breast cancer, or skin cancer early and survives. Along with this, you can get assistant services to help cope with your diagnosis day-to-day and the Best Doctors service gives you access to diagnostic and treatment insights from the world's top medical experts for your condition. Add to that, daily living assistance and resource lookup for day-to-day activities that become extra challenging due to illness, and RBC Insurance's policy is beefed-up with a full support package.

The conditions covered are limited, but if you're diagnosed with cancer, stroke, or heart attack [myocardial infarction] you qualify.

Check out our sample pricing grid for a 45-year-old, male non-smoker below:

$10,000 Critical Illness Term 10- $7.73/month

$25,000 Critical Illness Term 10- $19.33/month

$50,000 Critical Illness Term 10- $34.16/month

$75,000 Critical Illness Term 10- $51.23/month

A Closer Look: Term 20 Life Insurance

A closer look at Term 20
can save you money.

Just because Term 20 Life Insurance policies are generally straightforward, doesn't mean there aren't some nuisances that come with this coverage that deserve a closer look.

But before you even start disecting the in's and out's of Term 20 Life Insurance it's important to know how much insurance you actually need. Our free Needs Analysis Calculator can help take the worry out of that task for you.

Now you're finally ready to take a closer look at the following factors and features that come with buying Term 20 Life Insurance:

The "20" in Term 20 means that the premiums are level for the first 20 years of the policy.

(A Closer Look: Term 20 Life Insurance continued...)

Life Insurance and Diabetes

Challenges for diabetics
don't end at the doctor's office.

A diagnosis of Diabetes means many new challenges in your life, not the least of which is trying to obtain life insurance. The insurance companies can choose not to insure you, based on your diagnosis or build in an extra premium based on your health. It's important to work with a seasoned broker who has experience dealing with diabetics. After all, getting insurance as a diabetic is difficult, but not impossible. Knowing the seven variables insurance companies will consider when determining if you qualify, could mean the difference between insured and uninsured:

Getting insurance as a diabetic is difficult, but not impossible.

(Life Insurance and Diabetes continued...)

Mortgage Insurance and Post-Claim Underwriting

Mortgage insurance
can be a trap

Creditor insurance is one of the most profitable products in a bank's line-up. Often sold using high-pressure tactics, many borrowers are backed into a corner and feel like they have to make the purchase or else lose their existing loan.

What many don't know is this form of coercive selling is illegal. A company is not allowed to provide a product or service on the condition that their customer purchase an additional product from the same, or a related company.

Banks also engage in Post-Claim Underwriting, meaning they don't check your medical history, they just ask you a bunch of medical questions and decide  whether you qualify, based on your answer, right there on the phone. It's at the time when a claim is filed that things start to unravel because it's not until after the insured dies that the banks finally begin phoning around to doctors and checking into their medical history. If they find any descrepencies, the beneficiary may be out of luck and the bank may decide the insured should've never qualified for coverage in the first place.

The practice is such a problem that CBC highlighted the pitfalls of Post-Claim Underwriting in a segment on CBC Marketplace called In Denial.

Banks engage in Post-Claim Underwriting, meaning they don't check your medical history. They just ask you a bunch of medical questions and decide  whether you qualify, based on your answer, right there on the phone.

Purchasing insurance from a qualified broker saves you the roll of the dice that comes with the slimy practice of Post-Claim Underwriting, since indvidual life, disability and critical illness insurance plans do their underwriting at the time of application. There are also additional benefits to individual insurance that a bank plan simply can't provide:

• Level coverage

• Portability

• Customization with the length of your plan through either a term or permanent option.

• You choose the beneficiary, the bank doesn't.

• Many plans have a return-of-premium feature if a claim is not made.

If that weren't enough, bank plans are normally 30-40% more expensive than individual plans. You can get a free quote and compare for yourself using our Term Life Instant Quote Page.

Changes to Empire Life’s Segregated Fund Lineup

Empire Life has made important changes to its segregated fund line-up effective June 7, 2009. These changes were sent out May 29, 2009 to their broker network via information circular and are as a result of the increased volatility in the stock market over the past year.

Here's how the changes may affect you:

New Account Holders

• Deposits to two segregated funds will not be permitted after December 31 of the year the annuitant turns 81.

• Transfers from other investment options (i.e. treasury interest options, or guaranteed interest options [G.I.O.]) will not be permitted after December 31 of the year the annuitant turns 80.

• No resets will be permitted after December 31 of the year the annuitant turns 80. Empire Life's reset feature allows the annuitant to reset their death benefit guarantee and their maturity benefit guarantee twice a year free of charge. This is a terrific feature, especially in a rising market. For example, if an investor puts $100,000 into an Empire Elite Fund and the value rises to $125,000. If they take advantage of the reset, the new value becomes their death and maturity benefits.

Existing Account Holders

• There will be no change to the maximum deposit age.

• There will be no change to the transfer of new money.

• No resets will be permitted after December 31 of the year the annuitant turns 80 years old, effective Oct. 1, 2009.

Empire Life will not be making any changes to their G.I.O.s or treasury accounts. Empire Life has one of the better segregated fund portfolios in Canada, offering very competitively priced Management Expense Ratios (MERs). Empire Life's MERs are much lower than many of the competing segregated funds and compare very favourably to mainstream mutual funds.

For more details, feel free to contact us at or 1.866.899.4849.

The Toronto Star Analyzes Job-Loss Insurance

On Oct. 16, 2006 BMO Bank of Montreal became the first bank in Canada to offer Job-Loss insurance through two new products that provide creditor protection against disability and job-loss for customers that have personal, student and homeowner lines of credit.

Functioning similar to a loan, both products help customers cover their payments on regular lines of credit  in the event those become injured or disabled. The "Plus" in Disability Plus means additional coverage in the event the customers can not make their payments due to involuntary job-loss.

Of course, Job-Loss Insurance has gone through a recent upswing in popularity thanks to the recent economic slowdown. Sure, people want protection against the unexpected, but is it really worth it?

Toronto Star reporter James Daw looked at Job-Loss Insurance from Bank of Montreal and Manulife Financial in his June 2, 2009 article:

BMO and Manulife pair job-loss coverage with disability insurance. This adds to the cost of coverage, while increasing the potential value to some buyers, and not others.

Manulife goes even further: It requires the borrower to buy life insurance on the loan. You may already have, or want, a free-standing life insurance policy that would offer more flexibility and control, while lasting longer than the loan and possibly costing less.

Both job-loss insurance policies come with conditions for coverage and maximum payment limits. The policy from Bank of Montreal [underwritten by Sun Life Financial] has more conditions that add to the complexity of the purchase decision.

-James Daw, Toronto Star. 

Daw goes further, in referencing the myriad of exclusions. "You can not know, when you apply for coverage, you are about to lose your job. If you resign voluntarily, retire, go on pregnancy leave, or get fired for cause, you will not be able to collect the benefits. Both policies make you wait to collect; 30 days at Manulife, 60 days at Bank of Montreal."

You also have to make sure you're not too old for the plan. "BMO will not pay job-loss benefits to those past the age of 54...while Manulife will pay until 64. The Bank of Montreal policy requires you to be with the same employer for at least 6 months," says Daw.

Daw says the cost of this coverage isn't cheap either. "BMO's cost of job-loss, plus disability coverage, for a single person is four dollars for every $100 of a monthly mortgage payment, seven dollars for a couple...it's like adding four to seven percentage points to your interest rate. If your mortgage happened to be $1,000 per month, coverage would cost you $480 to $840 a year. Manulife's charges vary by age and the outstanding [credit] balance rather than the monthly cost."

Who Should Consider Long-Term Care Insurance in Canada?

It's very tough for people to envision a future of daily ongoing assistance due to injury illness or old age.

Extensive long-term care costs an average of $5,000/month in provinces where the care isn't entirely subsidized by the government.

The financial burden can be significant, since extensive long-term care costs an average of $5,000/month in provinces where the care isn't entirely subsidized by the government. Long-Term Care Insurance can signifcantly lessen the financial blow caused by needing ongoing assistance with daily living. Besides, just because your government may be subsidizing care now, doesn't mean they will be forever. Government plans and programs are continually scaled back and bills can mount up exponentially.

However, finding the right Long-Term Care Insurance plan can be very challenging. There are various carriers in Canada that provide Long-Term Care policies, but all the bells and whistles of each plan can make selecting one for your needs very intimidating.

Who should seriously consider purchasing Long-Term Care Insurance?

1. People who are concerned that a long-term illness or injury can eat away the value of their estate.

2.  People who don't want to rely on the government or family members for ongoing assistance, if they ever need it due to illness or injury.

3. People who can afford to pay the premiums. Plans can range anywhere between $50-$1,000 a month. You can get a free quote at our Long-Term Care Instant Quote Page.

4. People who are in stable health. Don't wait until you no longer qualify. The sooner you investigate your options the better. The premiums can increase significantly just by waiting a few years.

Reasons Why People Don’t Buy Life Insurance in Canada

life insurance by Michael P

Life insurance forms the foundation of most financial plans, yet so many continue to put it off and, for the past 16 years, I've been wrestling with that million dollar question, "Why?"

After years of experience in the industry, I'm finally ready to reveal the five most common reasons people don't buy life insurance. Unfortunately, the sad part is, much of the reluctance from misinformation.

1. They think they're too old. Many are unaware that most Canadian insurance carriers insure indviduals up to the age of 85.

2. They think they're too sick. However, many policies in Canada are available without a medical and many others only ask a handful of basic health questions. Besides, many indviduals who have a history of stroke, heart attack, or cancer in the family can still qualify for life insurance in Canada. You can visit our Non-Medical Life Insurance Page for a free quote.

3. It's too expensive. Not true, life insurance premiums can be as little as $15 a month.

4. It's not necessary. Even in cases where you are debt free with no dependents, Life insurance can be an effective way to take care of final expenses. When you do have dependents and/or debt, life insurance is a great way to create instant liquidity when your family needs it most.

5. It's too complicated. You're absolutely right. Life insurance can be very complicated, but with my team of brokers we can help simplify it for you. You can also visit our Instant Life Insurance Needs Calculator to find out exactly how much life insurance you need.

A Closer Look: Industrial Alliance’s Unique Mortgage Insurance Solutions

Industrial Alliance has term mortgage insurance plans that  provide various unique benefits to take advantage of.

A home is the biggest investment most people make in their lifetime, so it's imperative that you cover your investment and protect your family in case of  financial catastrophe.

Industrial Alliance has term mortgage insurance plans that could provide a unique solution with various benefits to take advantage of:

• A level death benefit or a decreasing death benefit.

• A Pick-a-term Policy, which allows you to choose a term that's identical to the amortization period of your mortgage and,unlike the bank, you can convert your coverage to a permanent plan at anytime.

• The bank doesn't choose the plan - you do, putting you firmly in the driver seat of your financial future.

• You can insure your payments in the event of sickness or accident.

Industrial Alliance plans are also underwriten at the time of application. Unlike most lending institutions, which participate in post-claim lending. They do additional underwriting at the time of the claim, which increases the amount of time it takes to process the claim and the likelihood your claim will not be paid.

Take a closer look at Industrial Alliance's Pick-a-term Policy, thanks to this example of a 40-year-old, male non-smoker with $250,000 of coverage.

$250,000 Term 10 $26.55/month

$250,000 Term 20 $39.38/month

$250,000 Term 30 $62.78/month

$250,000 Term 40 $90.45/month

How Life Insurance Can Help Mind The Gap - In Lost Savings

Life insurance can be your safety net, helping you protect those basic necessities of life and insuring your family's future for years to come, especially in these volatile economic times.

If a $600,000 investment falls to $400,000, life insurance can be there to make up the  difference and insure that the value of the estate is maintained.

Many are facing a significant hit to their investments thanks to the economy. If a $600,000 investment falls to $400,000, life insurance can be there to make up the difference and insure that the value of the estate is maintained for the benefit of its heirs.

Below are two beneficial policies that could bridge the gap and maintain your investments:

A 50-year-old, male non-smoker can get a $200,000 policy of Term 10 for $38.07 a month, or a Term 20 policy for the same value at $75.87 a month.

The Best and Worst Life Insurance Policies in Canada

Life insurance may not be on the top of anyone's expenses list, but when it's time to invest in your family's future, you want to know you are getting the best coverage at the best price. Before you hand the cash to just any broker, you need to first determine how much life insurance you need. Our online Needs Analysis Calculator can let you know how much is just enough.

It's no secret that life insurance rates vary widely from company to company; knowing what separates the best from the worst can save you thousands upon thousands of dollars.

The next step is finding the best plan for your situation. Our Instant Quote Page cross-references all of the Term Life insurance plans across Canada to find you the best price in a matter of seconds. It's no secret that life insurance rates vary widely from company to company; knowing what separates the best from the worst can save you thousands upon thousands of dollars.

Below, we're blowing the lid off those carriers who reign on top and those who probably don't want you to know they're scraping the bottom of the barrel:

$250,000 Coverage, 40-year-old, Male Non-Smoker, Term 10

*Best Plan in Canada: RBC Insurance $22.23/month

*Worst Plan in Canada: Union of Canada Life Insurance $40.58/month

$250,000 Coverage, 40-year-old, Male Non-Smoker, Term 20

*Best Plan in Canada: Transamerica Life $36.90/month

*Worst Plan in Canada: Sun Life Insurance $42.30/month

$250,000 of Coverage, 40-year-old, Male Non-Smoker, Universal T-100

*Best Plan in Canada: Assumption Life $120/month

*Worst Plan in Canada: Standard Life $153.28/month

$250,000 Coverage,40-year-old, Male Non-Smoker, Whole Life 20-Pay

*Best Plan in Canada: Manulife $204.13/month

*Worst Plan in Canada: AXA Assurance $389.70/month

*The above rates listed were at the time of publication and will vary once  the included insurance companies adjust their premium schedules.

Term 100 Life Insurance: The Misunderstood Insurance

Term 100 life insurance is a very misunderstood product. The name is partially a misnomer. "Term" normally implies that this is a term policy, but Term 100 means they are actually permanent policies because they have a term of 100 years and best of all, the premiums never increase.

The policies are technically paid up at age 100, so the premiums cease at that point, but the coverage continues. Some Term 100 policies in Canada do offer a cash value, but most of them are offered on a stripped-down basis. This means that the owner does not get any return of premium if the policy is cancelled prior to death.

Term 100 means they are actually permanent policies because they have a term of 100 years and best of all, the premiums never increase.

Of course, one of the drawbacks of Term 100 policies is that they're payable to age 100 (your entire life) and if the policyholder misses a payment at any point prior to death, the policy will lapse after a 30-day grace period. This can create a problem for policyholders who switch banks, but forget to tell their broker or insurance carrier.

Also, Universal Life policies are often sold with an underlying Term 100 cost-of-insurance. These Universal Life policies can act as a Term 100 policy with an optional savings component. The only variable fluctuation in these T-100 Universal life policies is the premium tax, which is built into the policy, but may rise over time. Still, the insurance company bares the entire risk when it comes to a Term 100 policy, so your premiums will always stay the same.

One big advantage of the Universal Life Term 100 is the policy holder has the option to pick up an additional savings component that can be used to offset future premiums. If the cash value is not used, it is paid out on top of the death benefit, tax free.

Universal Life Term 100 and straight Term 100 policies have gone up as interest rates increase. Insurance companies use long term fixed-rate investments in their reserves primarily to offset future claims. Declining interest rates have made these plans less profitable for insurance carriers and many companies have pulled them from their product shelves.

These plans aren't available in most countries anymore, so if you want a Term 100 or Universal Life Term 100 plan, you better act soon. Get a free quote at our Online Quote Page.

Below is a summary of the plans offered by the top three Universal Life Term 100 and straight Term 100 carriers in Canada. The example is $250,000 of coverage for a 40-year-old, male, non-smoker:

Straight Term 100

Manulife: $117.50/month

Unity Life: $126/month

Empire Life: $132.53/month

Universal Life Term 100

Assumption Life: $120/month*

Manulife: $122.83/month

Empire Life: $125/month

*The Assumption Life policy has a built-in guaranteed cash value, which can be used via a policy loan to offset premiums in later years.

A Closer Look: Canada Life Competitive Term Solutions

Their rates are among the best in the industry and now Canada Life is lowering them on their Term 10 and Term 20 plan, effective May 19th.

Canada life's Term plans can be a tad confusing for the consumer because all their plans are issued under the brand name "Simply Preferred Term" when in fact. They have five classifications;

Non-Smokers

• Gold (Standard)

• Platinum (Preferred)

• Diamond Plus (Super Preferred)

Smokers

• Silver (Standard)

• Silver Plus (Preferred)

The new rates apply to single life and joint first-to-die, stand-alone policies, along with Term 10 and Term 20 riders added after May 18, 2009 to:

• All participating life insurance inforce policies

• Universal life insurance inforce policies issued after May 30, 2005

Additional value-added features include:

• A wide selection of benefits and riders to tailor your coverage.

• The fact that Term 10 may be converted to a Term 20 policy, prior to the fifth policy anniversary, without evidence of insurability.

• The ability to convert to a choice of participating or non-participating permanent life insurance.

i.e. 40, male non-smoker with $250,000 @ standard/gold rates Term 10, means $22.05/month, or Term 20 means $36.08/month. 

7 tips to boost your health condition instantly

The cost of your health insurance policy premium depends on a number of factors like your age, the benefits you choose or your health status. The first two values are usually both quite firmly defined, but the condition of your health can be improved immensely without spending too much additional time or money. If you've always wanted to improve your health condition, follow all or some of our tips and feel the difference for yourself!

Hydration

Do you drink enough? Being hydrated or dehydrated influences not just how you feel, but also your efficiency. Long term dehydration often leads to skin problems, loss of appetite, worse physical performance, trouble concentrating or even to a stroke, to name a few. Staying hydrated is a bit tricky, because adults developed the nasty habit of ignoring the early signals of thirst and drink only when the thirst (dehydration) fully develops. In fact for every 16 pounds of your weight you should drink 10 fl oz (1 big glass) of fluids every day, while spirits, wine, coffee and black tea don't count in at all and beer contributes to your daily intake only by half of its quantity. (We are of course not suggesting that you should drink beer twice as much.)

Proper meal timing

If you often feel tired even though you don't usually skip meals, try to eat 6 light meals a day instead of just 3 big meals. Your blood sugar will keep quite high during the whole day which should help you to stay concentrated on what you are doing. Also eating more times smaller amounts of food helps to get slimmer, so it this is one of your goals, go for it!

Sleep less

If you think you sleep enough but still feel tired and sleepy during the day, or if you lie in bed for ages, not able to fall asleep, try the following trick. The following night go to sleep later than you normally do and get up after only 5 hours. If you slept the whole time, add additional 30 minutes the following night and if you sleep again the whole time, keep adding 30 minutes at a time, until you actually find the right amount of sleep time for you. The important thing is that you sleep the whole time. If you can't, shorten the time you spend in bed. You should experience much more energy during the day and getting to sleep should not be a problem anymore.

Quit smoking

What actually happens in human body after the last cigarette? Within 8 hours, carbon monoxide level in blood drops to normal, while oxygen in blood increases back to normal. After 24 hours, the chance of a heart attack decreases. After 48 hours the nerve endings begin to re-growth and the ability to smell and taste improves drastically. After about one month after the last cigarette, coughing disappear, sinuses are clean again and lung function increases. This 23 minutes presentation might help you to make the final decision, so give it a try!

Get a pet

Why you might ask? According to the many studies, having a pet (especially a dog) actually decreases your blood pressure and heart rate! How is that possible? One way to look at it is the increased exercise that comes with caring for a pet. Another thing is the calming influence of another living creature - especially for those living alone.

Take a vacation

Of course taking some time of every year or even a few time a year contributes to your health in many ways, but to be more specific - taking a vacation is very good for your heart! According to a study at The State University of New York, middle-age women who didn't take frequent vacations have 8x the risk of either having a heart attack or dying of heart disease.

Laugh out loud

You've surely heard of this one: laughing improves your health. But how exactly? For one, laughter reduces the stress hormones that have been linked to heart disease. It also lowers the blood pressure and prevents the heart attack by making your blood vessels expand.

Disability Insurance: Canada’s Forgotten Insurance

Good thing he has the right coverage

When you're young it's easy to think you're invincible and nothing will ever happen to you, but the hard truth is, if you're under 65, you're 60% more likely to become disabled than you are to die.

The second leading cause of bankruptcy in Canada, behind over extension of credit, (29%) is injury or illness leading to disability (15%) because it blocks people from sustained employment. Yet, most Canadians don't understand how disability insurance works and why they may not be adequately covered.

(Disability Insurance: Canada's Forgotten Insurance continued...)

5 Traits of Successful Life Insurance Brokers

Becoming a successful insurance broker is hardly a cake walk, it takes discipline, hard work and a passion for helping people. The best of the best rise to the top and win over new clients with the following five keys to success:

Continue reading this article in our Broker's Tips Section.

7 Steps to Getting the Cheapest Term Life Insurance in Canada

We all know that most people don't spend their days thinking about life insurance, but if they did they would see that term life insurance rates vary widely from company to company, and that taking the time to investigate their options could translate into thousands of dollars worth of savings for them and their families.

The following 7 steps make sure you'll be several steps ahead of "most people". They will help you cover your bases and make sure you're always paying the lowest life insurance price possible.

Taking the time to investigate your options could translate into thousands of dollars worth of savings for you and your family.

Step 1: Make sure you're buying the right amount of coverage. You can visit our online needs analysis or calculator to find out how much insurance you really need.

Step 2: Pick the plan that is right for you.Term policies have a lower cost, but remember that cost rises as you get older.

Step 3: Make sure you are working with an independent broker with access to a variety of carriers. Many brokers, though independent, only have access to two or three carriers and aren't always shopping for the best rate.

Step 4: Buying life insurance is a great excuse to stop smoking. Smokers pay higher insurance premiums than non-smokers. A 40-year-old smoker will pay $77.40 a month for $250,000 of Term 20 life insurance, while a non-smoker will pay $36.90 a month.

Step 5: Improve your overall health. Many variables go into determining what insurance classification you will recieve, some of those are beyond your control like family history, but others are completely and totally within your control, like blood pressure, build, and other lifestyle factors. We recommend you do your utmost to improve those factors within your control and have faith about the rest.

Step 6: Be careful when selecting additional riders and benefits. Usually these are traps designed mostly to increase your premium payments.

Step 7: Shop online. Our Term Life Calculator compares the prices of all the life insurance companies across Canada to make sure you're not overpaying.

A Closer Look: HSBC Term Life Insurance

In just minutes, you and your family can enjoy peace of mind for the next 10 or 20 years. Simply create a personal quote, answer a few questions, then enjoy instant coverage, all online. It's quick, it's convenient, it's HSBC.

-Source: HSBC Insurance

These HSBC term life policies are underwritten by Household Life Insurance Company and, in keeping with convenience for the insurance consumer on the run, they come with only seven health questions. However, this rapid-fire solution comes with a heavy price. The premiums are almost double the rate of the competition.

Just check out this side-by-side comparison with other plans below:

Term 10: $250,000, 40-year-old male smoker

HSBC Term 10: $31.50/month (preferred rates not available)

RBC Insurance Term 10: $22.93/month (standard rates)

Transamerica Term 10: $17.33/month (preferred rates)

Term 20: $250,000 40-year-old male smoker

HSBC Term 20: $45.72 /month (preferred rates)

RBC Insurance Term 20: $36.90/month (standard rates)

RBC Insurance Term 20: $26.01/month (preferred rates)

In the end, the HSBC term life policies come with several distinct disadvantages, as listed below:

• Higher premiums

• Maximum issue limit is $250,000

• Policies are not convertible to a permanent plan without a medical, so if the insured's health changes and they want to convert the coverage, they'll probably be out of luck.

• No available options, or riders

• The policy is only available online, so don't expect great service.

Life Insurance: Are Canadians Over Insured?

Canada is thought to be a conservative nation and part of conservatism is the prudent planning it takes to purchase life insurance, maybe that's why 70% of Canadians have some sort of life insurance policy. While life insurance forms the backbone for most sound financial plans in Canada, we wondered if other nations around the world think so.

Below is a chart highlighting what percentage of a nations population has some sort of life insurance plan, whether that be group or individual:

The Top 5 Life Insurance Rip-offs

careful before you sign
photo by Christian Birmele

In the land of life insurance, it's important to be cautious and inoculate yourself against the traps that exist in the business. When it comes to your financial future, knowledge truly is power, so we hope that by exposing these rip-offs, you'll become a more powerful and savy life insurance consumer.

A Closer Look: CPP Term Plans

Since June 2006, Canadian Protection Plan [CPP] has offered various term life insurance plans underwritten by Unity Life. The flagship plans in CPP's lineup are Deferred Term, Simplified Term and Simplified Term Plus.They are all available without a medical and can be purchased online or through a broker.

The flagship plans in CPP's lineup are Deferred Term, Simplified Term and Simplified Term Plus.They are all available without a medical and can be purchased online, or through a broker.

Before you choose a plan that works for you, take a closer look and see what each one means for your financial future.

Read the rest of the article A Closer Look: CPP Term Plans.

10 tips that keep your wallet full

Is the thought of financial crisis troubling you? Do you want to spend less?
No need to be worried: with the following tips you will be able to cut on expenses in no time. 

I. Grocery shopping
Don’t ever shop on empty stomach! That way the advertisement is especially tempting. Before you leave home, make a shopping list and stick to it! Match up the prices per pound or ounce to find the best deal. If you look around the shelf, you will note that cheaper items are located at harder to reach locations, usually at the bottoms of shelves. More expensive goods would be presented in front of your eyes. If you can tell the difference between a $9 bottle of wine and a $30 bottle of wine blindfolded, buy the more expensive one. If you can’t, stick to the $9 one. Having your shopping list ready, don’t fall into the trap of buying stuff because it’s cheap.

II. Water
Do you really need to pick up your favourite bottled water every day? By filtering your tap water you save both money and you also help the environment. Sure: recycling all the plastic bottles is one way to go, but not creating the waste works even better.

III. Coffee
Can’t live without caffeine? Most people can’t. But is it worth paying for your coffee every morning? Learn to make coffee yourself and save a lot.

IV. Snacks
The breakfast long forgotten and your lunch break far away time for some snack. Chocolate bar might be tasty, but eating it every day is no good to your health and wallet. Try fruits and veggies instead. Getting slimmer is just another side effect.

V. Movies & Cable
A night out at the movies is not particularly cheap. It can be between $20 and $30, including popcorn. On the other hand, for $9/months you can watch all the movies you like on Netflix. But when you do finally sit down and watch TV, do you go through all the channels you have available?
Have a look at what you are actually paying for and get rid of all those channels you have no use for.

VI. Music CDs
Do you still keep collecting expensive new released CDs for one or two songs? Why don’t you check out the on-line services allowing you to download just the songs you like? iTunes or Amazon let you download them for under $1 per song.

VII. Phone
While some people may be able to live without a cell phone quite happily, most of us can’t either for personal or professional reasons. But having a cell phone doesn’t have to be a burden. Don’t stay with your cell network provider only because of loyalty. If you find a better plan with another company, go for it. Also consider pay as you go.

VIII. Gas
For busy professionals, having a car although costly is a necessity. Because the use of gas differs significantly, you should look up the fuel efficiency of gas online before you make the purchase. What you save on a single refill may not be a lot, but over the years the savings are huge.

IX. Smoking
Quitting smoking not possible for you at the moment? Try rolling tobacco instead. Switching to rolling tobacco saves you plenty of money (up to 50%), since you tend to use less tobacco per cigarette. Give it a try!

X. Credit cards
Having a credit card could be a real advantage in unforeseen situations when you are short of cash. On the other hand, that tiny bit of plastic can really make your life costly and difficult, when you are unable to repay it on time. Most people keep using their credit cards only out of a habit. Think differently. Close all your credit card accounts except for one and live on what you make! Or do you really enjoy paying the interest rate every time you pay with that piece of plastic?

I hope these tips help you save money. They've helped me and my friends afford wonderful family vacations and cruises. Live well and smart. Don't forget the best things in life are free - time with your friend and family. Make the most out of life and don't work yourself to death.

I have my office working on a four day work week and they love it. More time to enjoy life and more time for friends and family.

BMO Life Assurance Re-Pricing Term Life Plans

AIG Life Canada was once very aggressive in the term life market and its successor, BMO Life Assurance, has followed suit by re-pricing both its Term 10 and Term 20 policies, effective May 1st.

BMO Life Assurance, has followed suit by re-pricing both its Term 10 and Term 20 policies, effective May 1st.

Both plans have the follwing qualities:

• They are guaranteed renewable to age 85.

• They are guaranteed convertible without a medical

• Preferred plans are available for those in excellent health and have very good family health history.

• Multi-life discounts, with the policies available on a joint-life basis.

The plans also can come with a Unique Business Guaranteed Insurability Option, which gives the business owner the option to buy additional insurance, as the business grows, without requiring additional insurability evidence.

But how does BMO's Term Insurance stack up against the competion with its new rates? It's time to take a closer look, so that you can see the best fit for your situation:

Preferred Term 10 (Standard Rates)

Preferred Term 20 (Standard Rates)

Non-Medical Life Insurance Consumer Report

Couple by Masahiro Hayata

Non-medical life insurance plans can be purchased instantly, without medical exams. No doctors or nurses will need to visit. You just need to answer yes or no to a series of questions. Traditionally, only a limited number of companies offered these types of plans in Canada, but competition is heating up among insurance providers.

Non-medical life insurance plans can be purchased instantly, without medical exams.

Read the full article Non-Medical Life Insurance Consumer Report.

Life Insurance, Underwriting and Bankruptcy

It's standard practice for insurance companies to determine your life insurance premiums based on several influencing factors. These variables include the following:

• Your age

• Gender

• Whether you smoke or not

• Overall health

• Family history for disease and medical conditions

Unfortunately, with the current economic crisis, a new factor that could influence premiums is having more and more impact on more and more Canadians everyday–bankruptcy.

More than 117,000 Canadians filed for bankruptcy over a period of 12 months ending in January 2009, an increase of 15.8% from the previous year.

-Source: Canadian Business Blog

Below is an inside look at how various Canadian insurance providers tackle bankruptcy:

AIG

Either a letter from the trustee advising that they are aware of the insurance purchase and will allow it, or a discharge.

AXA

Will consider after a discharge.

Canada Life

$100,000 is allowed, as long as the individual doesn't have any other insurance in force.

Desjardins

Will consider after discharge and will also verify your current income and net worth.

Empire

Will consider after discharge.

Equitable

Will consider after discharge.

Industrial Alliance

Will consider under the following conditions:

• Personal life insurance only

• Only after a ten year term plan, to a maximum of $100,000

• Individual has a well-defined need

• The plan must be accepted as standard and there will be no criticism of your lifestyle (Alcohol,driving record, criminal record).

RBC Insurance

Will consider after discharge.

Sun Life

Either a discharge, or a letter from the trustee indicating the agreement and the need for the insurance purchase.

Standard Life

Will consider after discharge.

Transamerica

Will consider a max of $100,000, if there is no other insurance currently in force.

Unity

Will consider after discharge.

Increasing Your Prospect Pool with Social Networking

Business Graph by Balazs Gal

    I have become increasingly interested in how social networks can help you get your name in front of more people and build upon the concept of Passive Prospecting.

Facebook is the most popular but my preference is social networks, which are geared to the business side of things:

Linkedin  www.Linkedin.com

Twitter  www.Twitter.com

Gigpark  www.GigPark.com

Read the whole article Increasing Your Prospect Pool with Social Networking

A Closer Look: BMO Insurance’s Direct Term

In 2001, Bank of Montreal's Life Insurance division, BMO Life, began offering a unique twist on term life insurance through their BMO Direct Term product.

It's only available directly from a licensed agent via their call centre, but before you pick up the phone, let's take a closer look at what you're getting with BMO Direct Term:

Payouts range from $25,000 to $5 million spread out through $1,000 instalments and the premiums are guaranteed. As BMO is the only bank in Canada to offer AirMiles with their banking products, naturally their insurance products, including Direct Term, qualify for AirMiles as well.

Immediate coverage is offered at a face amount of up to $250,000, if you can answer no to certain health questions over the phone. Still, if you don't immediately qualify for coverage, BMO can offer you a $100,000 accidental death benefit.

Unfortunately, pricing is much higher than traditional individual term plans, especially if you're purchasing a policy with a shorter term.

40-year-old Male, Non Smoker, at a Preferred Rate of $500,000

Term 10: BMO $49.27 – RBC Insurance $26.01

Term 20: BMO $64.76 – Equitable Life $46.80

Term 30: BMO $85.30 – Unity Life $81.00

Since BMO's Direct Term Plan can only be purchased over the phone, you also miss out on the personal touch of a face-to-face meeting, like what you would get if you were represented by a broker. The representatives on the other end of the line are unable to advocate on your behalf and shop around for the best rate, the way a broker can.

While BMO's Direct Term Life insurance policy has some unique features, it can't offer customized advice and strategies the way a broker can.

You can get a free quote by visiting our Instant Quote Page or feel free to contact me directly at 1.866.899.4849

Non-Medical Life Insurance: Simplified Issue versus Guaranteed Issue

careful before you sign
photo by Christian Birmele

One of the small annoyances that come with buying a traditional life insurance policy is the required medical form you must fill out, especially since some people cannot qualify for those types of plans, but still want to ensure their family's financial future.

Well, don't worry because there are plans out there that require no medical exam called Simplified Issue Policies and Guaranteed Issue Policies, but there are a few subtle differences between these two distinct plans, which you should be aware of before you buy. 

(Non-Medical Life Insurance: Simplified Issue versus Guaranteed Issue continued...)

Canadian Tire Term Life Insurance: Not as Good as it May Sound on TV

When most people think of Canadian Tire, they’re thinking power tools and patio furniture, not life insurance.

Still, the home hardware company has offered a term life insurance plan, underwritten by Canada Life, since 2005. Two months ago, in March 2009, they tweaked the details of the plan and began rolling out a new marketing campaign, complete with TV commercials.

Not as Good as it May Sound on TV.
photo by Sergio

However, underneath the increased publicity, the plan isn’t all it’s cracked up to be, when compared with an individual term life policy.

But before we evaluate why an individual policy may be better for you, let’s take a closer look at the Canadian Tire Term Life Insurance Plan.

(Canadian Tire Term Life Insurance: Not as Good as it May Sound on TV continued...)

Empire Life’s Optimax III

Empire Life's Optimax III is product is capitalizing on Canadians renewed enthusiasm for simple guaranteed life insurance products. Whole Life sales as reported by Limra International were up by 13% in 2008.

Optimax is a traditional Whole Life plan available on a Single, Multi-Life or Joint Life basis. Face Amounts can be as low as $5,000 and the coverage is available to insured's age 0 to 85. The plan offers two premium choices:

• Optimax 100 - premiums payable to age 100.

• Optimax 20 Pay - Premiums payable for 20 years then fully paid up coverage for life.

The policy also has a full range of additional benefits:

• Disability Waiver

• Guaranteed Insurability

• Accidental Death and Dismemberment

• Children's Life and Critical Illness Rider

One quirk in the policy for children taking out a plan. At age 18 the insured has to submit a declaration stating they have not used tobacco or nicotine products (including marijuana) for the 12 proceeding months to get the plan reduced to a non smoker rate.

As with all Empire Life Term and Whole Life plans if another immediate family member has a policy there will a reduced administered fee of $30 a year.

Please feel free to visit our Whole Life Instant Quote Page or contact me directly at 1.866.899.4849 and we can design a plan for your particular situation.

Life Insurance Sales in Canada Climb 3%

 

by Phil Brown

Limra International recently reported that life insurance sales in Canada are on the rise reaching $1.1 billion in 2008. The following is a breakdown of the 2008 Limra numbers in terms of premium sales:

• Term 10 and Term 20 sales were up by 12%

• Whole Life sales increased by 13%.

• Universal Life sales decreased by 3%

• Term 100 sales were down by 21%

• Overall premium rose by 3%

The numbers reflect three key points:

1. Canadians value life insurance even in periods of economic uncertainty.

2. The vast majority of insurance companies in Canada remain financially stable.

3. Traditional guaranteed products are gaining in popularity. The Term 100 number is skewed given fewer carriers now offers this plan.

Life insurance offers an affordable way for individuals to achieve financial stability in the event of an unexpected tragedy. The current recession has left many Canadians with a smaller safety net. Life insurance creates liquidity and stability.

Life insurance has never been more affordable. You can get an instant quote in comfort of your own by visiting Free Quote or give us a call at 1.866.899.4849.

Unknown withdrawal from your bank account from BMO? Don’t panic

Don't panic, says life insurance broker Lorne S. Marr. "It's just part of the official transition from AIG Canada to Bank of Montreal."

AIG Canada policy holder Dawn Thompson is not happy - "Do you not think AIG could have had the courtesy to notify me? What if I want to speak to someone at BMO about my policy - there are no contacts, no information. Talk about being blindsided!"

Apparently BMO Life Insurance did send out notices but a lot of people didn't get them or read them.

"It happens all the time. People get so many documents with final legal print that they just don't read. Of course they should, but they don't."

LSM Insurance has put up an official contact page for their many AIG policy holders who have now moved to BMO Life Insurance. And they are answering questions from their clients directly as well. The page is a help not just to their own clients but to anyone holding an AIG Canada policy.

"Any former AIG life insurance policy holder can find all the information they need to contact BMO Life about their policy, even for claims," says Mr. Marr.

"It's a big transition, but with the Bank of Montreal, we feel our clients are in good hands."

For the moment telephones are ringing off the hooks at the BMO and at customers banks.

The difficult part is if someone doesn't want to be with the Bank of Montreal for either personal reasons or past experience with BMO. In that case, the individual has to consider moving to another life insurer. AIG Canada simply doesn't exist anymore.

But moving a life insurance policy has to be done very carefully according to Mr. Marr.

"If you don't take care when you move your life insurance policy you can face penalties, lose coverage and end up paying higher premiums. A good independent life insurance broker knows how to make sure that doesn't happen. But make sure you call us first before you cancel your old policy."

Sometimes there is a pot of gold at the end of the rainbow though, reassures Mr. Marr.

"Many times our clients end up with lower premiums and higher coverage. Of the hundreds of life insurance policies in the Canadian market - there is a right one for everyone. We help our clients find that one."

Long Term Care Insurance - Home Care vs. Facility Care

by Pablo Prez

Most Long Term Care insurance policies in Canada will pay a tax free daily benefit once the insured's physician provides certification that the insured requires care in a facility or at home because of his/hers inability to perform two or more specified activities of daily living — bathing, dressing, eating, maintaining continence, toileting, or transferring.

Most plans offer a Facility Care benefit as their base coverage. The benefit is typically payable when the insured requires health or personal care services on a long-term basis from a long-term care facility, as recommended by a physician.

Parkinson’s Disease and Life Insurance

Parkinson's Disease (PD) belongs to a group of conditions called motor system disorders, which are the result of the loss of dopamine-producing brain cells. The four primary symptoms of PD are tremor, or trembling in hands, arms, legs, jaw, and face; rigidity, or stiffness of the limbs and trunk; bradykinesia, or slowness of movement; and postural instability, or impaired balance and coordination.

Currently there is no cure for PD but there are a variety of treatments which can provide significant relief.  PD is an insurable illness especially in the early stages where there are minimal localized tremors (i.e. confined to the fingers) and no treatments are required.  Full article

Life Insurance - An Intangible Asset with a Tangible Effect

Family by Mark Evans

One of the reasons life insurance is not purchased by more people is the insurance industry often does a poor job of illustrating it's true value.

Unlike other assets life insurance is not something you can touch. Sure you have a policy with a lot of legal wording but the true value of the life insurance goes well beyond those pages.

Read the full article: Life Insurance - An Intangible Asset with a Tangible Effect

LSM Insurance - Exceeding Customer Expectations

As a business owner I am constantly looking at ways of improving the level of service we provide our clients. This is not only the right thing to do but it is also the "profitable thing" to do.

Research has shown that it costs seven times more to get a new client than it does to keep an existing one.

Don't get me wrong we want new clients but we are also very cognizant of the fact that delivering high valued service will not only help keep our clients coming back for more but will also make us more referable.

I am very proud to say that our company has in large part been built on passive referrals. Passive referrals come from our clients referring their friends, family and co-workers to LSM Insurance without us directly asking for their help.

We have been able to gain this level of trust because we have built on our commitment to become Canada's top on-line insurance provider. LSM Insurance remains 100% committed to making the process of buying insurance as enjoyable and easy as possible and once you become an LSM client you can expect service beyond your expectations.

Below are lists of LSM's CORE principles:

• Listen to our client and create solutions best suited to their insurance needs.

• Using our 15 plus years experience to make the claims paying process trouble free.

• Be sensitive to the fears and scepticism many of our clients have towards insurance advisors and insurance companies.

• Respect our clients' time and apply our knowledge and resourcefulness to make the buying process simple.

• Use state of the art technology and personal service to create the highest level of service.

• Communicate regularly with our clients to keep them up to date with industry trends.

• Be honest at all times and take full responsibility for our actions.

• Seek ways to constantly improve the level of service we provide by encouraging each client to critically evaluate our performance.

• Measure our success by our clients' willingness to recommend us to others.

Buy Term and Invest The Difference

Both Term and Permanent insurance policies use the exact same mortality tables for calculating their respective premiums. However the cost of the two types of policies is much different because Term policies increase as the insured ages and Permanent policies generally provide a level costs for life.

The simplest form of Term insurance is Annual Renewable Term insurance. Under this type of policy the premiums would increase on an annual basis.

The Term insurance marketplace has evolved over the last half century. Many insurance carriers now offer term policies of multiple lengths. Industrial Alliance recently introduced a Pick-a-Term policy which allows the insured to choose a Term policy from 10 to 40 years.

The concept of "Buying Term and Investing the Difference" implies that the money the applicant saves in purchasing a Term policy will be applied to a separate savings account. The advantages of buying a Term policy are the following:

• Lower initial premiums. The applicant can apply the savings into a retirement account or the money can be used to help pay down debt.

• Term insurance may be the only feasible way for many individuals to adequately protect their family.

• Term policies are very simple to understand. The insured's premiums are fixed for a stated Term.

• Most Term policies are convertible. This means the insured can convert the policy without a medical to a Permanent plan. However it should be noted the cost is based on the insured's age at the time of conversion.

As previously mentioned Term policies escalate substantially in cost as the insured ages and "Buying Term and Investing the Difference" does carry several distinct disadvantages:

• Industry studies have shown that the probability of filing a claim under a Term insurance policy is less than 2%.

• Many Canadians still have mortgages and other debts into their 50's and 60's and the cost of maintaining a Term policy can be prohibitive.

• Term policies do not have a cash value. Therefore if the insured misses a payment the policy will lapse in 30 days.

• While the concept of "Buy Term and Invest the Difference" has some merit many consumers simply do not follow through and they are left without life insurance or savings.

The bottom line - each individual has their own unique needs and priorities. An independent broker can work with the insured to design the best plan for his/her situation. You can compare for yourself in the comfort of your own home by visiting our instant on-line quote calculators Term Insurance and Whole Life Insurance.

Disability Insurance versus Critical Illness Insurance

Riga Old Man by Ricardo Liberato

Disability Insurance and Critical Illness share some similarities. Unlike life insurance both policies are payable to the insured rather than the insured's beneficiary.

However, they also have several differences which are often misunderstood by consumers and many brokers. The primary difference is the way in which the proceeds are paid.

Disability insurance pays a monthly income whereas Critical Illness insurance pays a lump sum payout.

Other differences include:

• Disability is related to insured ability to work. Critical illness insurance is related solely to the diagnosis of a specific illness

• Disability insurance generally ends at 65. Critical Illness insurance can be maintained for the insureds lifetime.

• Disability insurance premiums are partially based on occupation class. The insured occupation is not a variable in critical illness pricing.

• Family history has a more significant impact on critical illness pricing.

• An inflation protector rider is available on disability insurance. This rider is unavailable on critical illness policies.

Your insurance advisors ability to understand these differences will guide his/her ability to provide prudent advice.

I would happy to discuss your particular situation please feel free to contact me at 1.866.899.4849 or visit our on-line Disability Insurance and Critical Illness Insurance calculators.

Life Insurance and Estate Planning

Life Insurance is an ideal way to protect the assets you have sacrificed a lifetime to build.

Many Canadians do not realize that upon the death of the surviving spouse their registered investments and the accumulation of their non-registered investments become taxable.

This situation also magnifies itself as we age because the value of these assets increases over time. Unless appropriate steps are taken the tax man could become one of your primary heirs.

CASE STUDY: FRANK & LINDA

The whole family by Derek Bakken

Frank and Linda are in their early 60's and relatively healthy. They have 2 children and 3 grandchildren. They recently retired and have accumulated a significant estate including a primary residence, a vacation home and various registered and non-registered investments.

Frank and Linda want to ensure that their family will be able to use their vacation home in the future and that there will be enough money to fund their future tax bill. With the help of their insurance broker Frank and Linda listed the potential ways they could leave their estate intact:

• Save substantial amounts of money to offset the estate taxes.

• Obligate the estate to borrow the necessary money at the time of death.

• Obligate their heirs to liquidate their property at the time of death.

• Take out a last to die life insurance policy with a tax free benefit equal to the approximate amount of their future tax bill.

Frank and Linda decided to set up a last to die life insurance policy best of all the premium had little to no impact on their lifestyle. Had they waited the cost would have risen and if their health had further deteriorated the plan may not have been available.

LSM Insurance has a team of brokers with specialized knowledge in estate planning. If you have any questions or would like us to tailor a quote to your situation please do not hesitate to call me at 1.866.899.4849.

Empire Life’s One Year GIO Promotion

Empire Life's Guaranteed Interest Option (GIO) accounts offer an excellent opportunity for risk adverse Canadians. The accounts pay competitive interest rates and from April 1st to Jun 30th 2009 the company is holding a special promotion.

Account holders who purchased a 1 year GIO (i.e. an investment with a fixed rate of return for 1 year) can transfer the money into an Empire Life segregated funds within the year and will not be charged any surrender penalties.

Segregated Funds are similar to Mutual Funds but are offered through Insurance Companies.

There are several differences between Mutual Funds and Segregated Funds. The primary differences are the principal guarantee on maturity and on death plus the ability to protect the funds from creditors going forward.

Below are just some of the benefits of segregated funds:

1. Principal guarantees at maturity and at death

2. Market gains can be locked in and guaranteed (Empire offers 2 resets per year)

3. By Passes the will - great for succession planning

4. Possible creditor protection

5. Avoids probate fees proceeds go directly to beneficiaries

We would be happy to help customize a plan to your specific risk level. Please feel free to contact me at 1.866.899.4849 for more details.

Life Insurance and Underwriting - The LSM Difference

I started as a captive agent with Metropolitan Life back in the summer of 1993. Over the last 15 plus years I have seen many changes in the industry. A major change that is not often discussed is the way life insurance companies now underwrite insurance applications i.e. the steps they take to determine what rate a client will pay.

In years gone by life insurance companies use take on all the risk for an insurance application. In today's environment much of the risk is shared with reinsurance companies.

A reinsurance company shares the risk of an insurance policy with the insurance company.  An example might be a $1 Million Term 10 policy with RBC Insurance - RBC Insurance may decide to take on $500,000 of the risk and share the other $500,000 of the risk with the reinsurer. The end result is the applicant must meet the risk profile of two companies.

Underwriting related issues are further complicated by the fact the criteria used by insurance companies and their reinsurers is constantly changing. Applicants travelling to the certain areas in the world may be issued at standard rates today but might be declined or rated 6 months from now.

A brokers ability to work with a multitude of insurance companies and their ability to keep in close contact with the respective underwriters can have a major impact on the premium the applicant pays or if he/she qualifies for insurance.

We recently had a 49 year old female with a history of high blood pressure and cholesterol approved for $350,000 of Term 20 coverage at standard rates after she had previously been rated plus 50% at another company. The reason for the rating was her high blood pressure - but it turned out she had white coat hypertension - which is a phenomenon where the applicant exhibits elevated blood pressure in a clinical setting but not in other settings.

We wrote a cover letter explaining this to the underwriter and her doctor was able to verify the information. The net result she is now paying $78.57 a month instead of $123.42 a month. A savings of $10,764.00 over the 20 years.

If you have any questions with your particular situation please do not hesitate to contact me at 1.866.899.4849.

BMO and AIG Deal Finalized

BMO finalized its deal on April 1, 2009 with AIG Life Insurance Company of Canada. The acquisition which was announced January 13, 2009, is an all cash transaction valued at approximately C$329.5 million.

The acquisition will strengthen BMO's Life's competitive position giving us immediate scale and capabilities in the life insurance market and will allow us to meet our clients unmet insurance needs said Gilles Oulette, President and Chief Executive officer of BMO's Private Client Group.

The deal does seem like a very good fit for BMO but how does it impact AIG policyholders? The answer - AIG policyholders will receive a letter later this month advising them of the change in ownership and the change in name. No action is required and there will be no changes to the policy benefits or guarantees.

BMO will continue to offer AIG's very attractive life and living benefits product portfolio. AIG offers Term 10, Term 20 and Term 30 policies. A Universal policy with over 400 investment options and a variety of Critical Illness plans.

You can get an instant on-line quote at Term Life Calculator or feel free to contact me at 1.866.899.4849.

How are Individual and Group Disability Policies Taxed?

Whether disability income benefits are taxable to the insured will depend on what type of policy the insured has and whether the premiums were paid with pre-tax or after-tax dollars.

With individual disability insurance policy the rules surrounding the taxation of benefits are generally very simple. If the insured pays the premiums with after-tax dollars, the benefits you receive are tax free. If the premium is deducted by the insured than any disability proceeds would be taxable.

Disability insurance purchased through an "association type plan" is called often categorized as a group policy and share certain characteristics of a group plan. However, in terms of taxability of the policy they are treated the same as individual disability policies.

With Employer-sponsored disability plan the taxation of the benefits gets a little more complicated. If the employer pays the premium and the insured does not receive a taxable benefit than any disability benefits received will be taxable. However if the employer pays the premium and the insured receives a taxable benefit for the amount of the premium any disability benefits received will be tax free.

You can get a free on-line quote at Disability Insurance or contact me 1.866.899.4849 and we can design a plan for your particular situation.

Changes at Industrial Alliance

Industrial Alliance just announced the following changes effective April 9, 2009.

1. A new product called Child Life and Health Duo which combines life and critical illness insurance under one policy.

2. The premium rates for the Whole Life coverages i.e. Life 10, Life 15, Life 20, Life 65, Life 100 and Term 100 have all increased by an average of 4%.

This is a good news bad news scenario for the Canadian consumer.

Child Life and Health duo is a unique plan which allows parents to insure their children at a favourable cost and while they are in good health.

The increase in cost on their Permanent product line-up follows an alarming trend from many Canadian insurers. Prices on most Permanent plans have been increasing as historically low interest rates negatively impact insurance companies investing policy reserves to pay out future claims.

This is especially true in the Term 100 and Universal Term 100 market. Now is a great time to look into look into Permanent insurance as many insurance carriers are on the cusp of increasing their rates.

You can get an instant quote at Whole Life or we can tailor a plan to your specific situation by calling me at 1.866.899.4849

Does Family History Influence Life Insurance Premiums

Family picture by 'freyja'

Over the last few years life insurance companies in Canada have started to dissect family history when analyzing the risk of new life insurance applicants.

The most common family history questions surround the following conditions: diabetes, cancer, high blood pressure, stroke, heart disease, kidney disease, Huntington's Chorea, Alzheimer's disease, Motor Neuron disease including ALS or Lou Gehrig's disease, Parkinson, mental illness or Multiple sclerosis. It can seem like a long list but the following are a few important points to consider.

• Family history questions are limited to biological siblings or parents

• Family history questions have a much greater impact on Critical Illness insurance than Life insurance

• Family history issues will generally not result in an applicant getting a rated policy. A rated policy is where the insured pays a surcharge for what the insurance company deems to be extraordinary risk. Applicants may also receive ratings for a variety of health, lifestyle and travel related issues.

A new development in the life insurance industry over the last decade has been the introduction of preferred rates.

Preferred rates are additional discounts given to individuals who are in excellent health and have very good family health issues.

The criteria for qualifying for preferred rates can differ from carrier to carrier but the difference in savings can be substantial. RBC Insurance's premium based on standard rates for $500,000 Term 10 coverage for a 50 year old male non smoker is $81.90 a month; their optimum rate is $57.60 a month.

You can further examples by visiting our Instant Quote link or contact me directly at 1-866-899-4849.

AXA Assurance’s Term to Age 70

AXA Assurance is currently the only company in Canada to offer a Term to Age 70 plan. The premiums are level to age 70 and the plan is convertible without a medical to a Permanent plan up to age 65. The plan is available to applicants age 18 to 60 and in face amounts as low as $25,000 assuming the premium is at least $100.00 a year.

AXA's Term 70 plan is available on a single life or multi-life basis. The built in policy fee on a single life plan is $75.00 a year and each additional insured person pays $25.00 a year.

Another very unique feature about all of AXA's Term insurance plans is the built in Extreme Disability provision. If the insured develops an Extreme Disability prior to age 60 the plan pays out half of the face amount tax free up to $250,000.

While no other company directly offers a Term 70 plan Industrial Alliance allows applicants to select Term plans up to 40 years. So an insured age 43 can select a 27 year term which is essentially a Term to age 70. Many companies also offer Term 20 or Term 30 plans so an insured 40 or 50 years old can also easily create the same plan with other insurance carriers.

AXA Term 70 plan is well priced at almost all price points. Examples are below:

40 Year Old Male Non Smoker $500,000 of coverage

• AXA Assurance - Term 70 - $106.20 a month

• Industrial Alliance - Pick a Term to age 70 - $114.50 a month

• AIG Insurance - Term 30 - $119.70 a month

• Transamerica Life - Term 30 - $121.50 a month

50 Year Old Male Non Smoker $500,000 of coverage

• AXA Assurance - Term 70 - $168.70 a month

• RBC Insurance - Term 20 - $168.75 a month

• Manulife Insurance - Term 20 - $176.93 a month

• Industrial Alliance - Pick a Term to age 70 - $184.50 a month

You can create your own quote by clicking on the Instant Quote link or if you would like us to design a plan for your particular situation please do not hesitate to call me at 1 866.899.4849

Manulife Tweaks its Disability Insurance Lineup

Manulife Financial is making some changes to their disability insurance line on March 28, 2009. The changes involve the way they underwrite their applications. Manulife will now begin offering better occupation classes - to certain occupations which will translates into lower premiums.

The news gets even better. Certain occupations which were previously disqualified for coverage will now be covered. Manulife is now insuring waiters and waitresses, bartenders, fast food restaurant workers, garbage collectors, disc jockeys and hotel and casino workers.

Manulife is also creating several new occupation categories which will include yoga instructors, personal trainers and telemarketers.

The news is not all good. Chiropractors will still qualify for a 4A classification (Manulife's most preferred rate) but will no longer be eligible for an own occupation rider.

Own occupation is the gold standard definition. Under this definition, total disability is defined as the inability to work at your regular occupation regardless of whether you work in another gainful occupation? Translation if your disability prevents from doing your regular occupation you can work at another occupation and still collect your disability benefit.

The "own occupation" definition is not cheap usually ranging in an extra cost of 20% to 30% of the base premium. E.g. On a policy with $1,500 a year premium the own occupation can cost an additional $300 to $450 a year.

The attached link provides more details on disability insurance definitions

If you any questions or would like us to design a plan for your particular situation please do not hesitate to call me at 1 866.899.4849

Disability Insurance - Comparing Definitions of Disability

by Joe Hall

When analyzing your disability insurance needs it's very important to understand the fine print of your contract. Unlike life insurance there is much more grey area surrounding what qualifies for a claim.

The definition of disability used in a disability contract can have a direct impact on the insureds ability to collect when he/she needs the money most.

Below are three definitions of disabilities used in most injury and illness insurance contracts.

Any Occupation

Under this definition, total disability means the inability to work at any occupation. Therefore if you are computer consultant and your disability prevents you from performing your regular occupation duties but you can still gainfully work as checkout clerk you will not receive a cent.

Regular Occupation

Under this definition, total disability means the inability to work at your regular occupation do to an injury or an illness.

Own Occupation

Is the gold standard definition - Under this definition, total disability is also defined as the inability to work at your regular occupation regardless of whether you work in another gainful occupation?

All the things being equal the better the definition of disability the higher the monthly premium. This makes sense because the insurance company has an increased likelihood of paying out a claim. The problem with the Any Occupation definition found in many group disability plans is it leaves a tremendous amount of grey area surrounding the insured's ability to find employment at another occupation at the time of claim.

The upgrade from Any Occupation to Regular Occupation provides significant value. However, the upgrade from Regular Occupation to Own Occupation can be questionable in certain instances. An Own Occupation definition provides the most value in a highly skilled occupation such as a surgeon but less value for occupations such as an office manager. The reason for this is a surgeon could easily have an injury to his/her hands which prevents them from being a surgeon but allows he/she to work as a family physician. In this instance the insured would continue to receive his/her disability benefits even though he/she is gainfully employed as a family physician. The likelihood of an office manager or even a lawyer collecting under the Own Occupation definition is significantly lower.

The "own occupation" definition is not cheap usually ranging in an extra cost of 20% to 30% of the base premium. e.g. On a policy with $1,500 a year premium the own occupation can cost an additional $300 to $450 a year.

Life Insurance and Final Expenses

couple by Ian MacKenzie

Life Insurance can be an ideal way for Canadians to create peace of mind when searching for alternatives to cover final expenses.

For the purpose of this article let's exclude big ticket items like paying off a mortgage or line of credit. For a full analysis of your insurance needs you can visit the attached link How Much Life Insurance Do You Need

Final expense costs - consist primarily of burial expenses.  The Canadian Press reported the average funeral in Canada cost about $7500 but that does not include the cost of a cemetery plot and monument, according to figures compiled by the board of Funeral Services.

Most Permanent life insurance policies have a minimum face amount of $10,000 to $25,000.  Premiums are generally level for life and many policies can be paid up in a limited number of years. Best of all the money is paid out tax free.

When is the best time to take out a life insurance policy? As soon as possible. 

The reason being the cost of obtaining life insurance increases as you get older and depending on your health you may be placed in a different risk classification due to certain illnesses as you age. Sample pricing is below:

Male 40 Non-Smoker

1. $25,000 Term 100 - $20.99 a month

2. $25,000 20 Pay - $28.71 a month

Male 65 Non-Smoker

1. $25,000 Term 100 - $75.25 a month

2. $25,000 20 Pay - $89.82 a month

Term 100

• Fixed Premiums

• Lifetime Protection

20 Pay

• Fixed premiums and policy is fully paid up after 20 years

• Lifetime Protection

If you would like me to design a plan for your particular situation please contact me at  1.866.899.4849 or visit our instant quote page Life Insurance Quote

Life Insurance and Cancer

Cancer Survivor Lance Armstrong
back on the road. Robert Montalvo

Recent advancements in the treatment of cancer have had a major impact on the way life insurance companies underwrite cancer survivors. Many forms of cancer are very treatable in the early stages and insurance companies have adjusted their pricing accordingly.

In certain instances cancer survivors can qualify for traditional life insurance. It is very important to work with a broker who has experience working with higher risk applicants. The claims experience and underwriting practices can vary sharply from one insurance company to another. Be careful: the wrong broker could cost you thousands of dollars.

A very exciting recent trend in the industry has been the increase in non medical life insurance providers. The term "non medical life insurance" is sometimes mis-used, while it's true the insurance company does not require a medical on these plans they still do ask a series of health questions. Many of policies have a 2 year waiting period, meaning if the insured dies in the first 2 years by a non accident the death benefit is limited to a return of premium plus interest.

Assumption Life recently lowered the rates on its Golden Protection plan. This plan is available without a medical and cancer survivors will qualify as long as they were diagnosed with cancer over 2 years ago and have not had a change in medication over the last 2 years.

One big caveat in qualifying for this and other non medical plans - the insured can not have been declined in the last 2 years. My advice to many cancer survivors looking at life insurance use this plan as your worst case scenario and than apply to another carrier to see if you can get a better rate.

If you would like discuss your particular situation in more detail please do hesitate to call me at 1.866.899.4849.

Joint vs Individual Term Life Policies

Many clients will ask me if they are better off with a joint life insurance policy or two individual plans. The cost of the plans in many instances is very similar but the eventual payout can be vastly different. 

Individual policies provide each insured with their own separate life insurance policy whereas a joint policy offers life insurance to each policyholder under one policy.  Both policies will pay out the face amount upon the death of either of the insured persons.

The true distinction in benefits occurs when one of the insured dies. With the individual policy the surviving life insured would maintain their existing coverage. In contrast under a joint life insurance policy the surviving insured could apply for a new individual policy without a medical but it would be based on his/her attained age and if the death occurs several years after the policy issue date the cost of the new policy would be significantly higher. 

Some insurance companies also place new age issue age limits on the surviving spouse - if the insured falls out of this bracket the coverage will not be available.

Below is a summary of the difference in cost.

• $500,000 Term 20 for a 40 year old male non smoker is $63.90 a month.

• $500,000 Term 20 for a 40 year old female non smoker is $45.00 a month.

• $500,000 of Joint Term 20 coverage for the same two insured's is $100.30 a month - a savings of $8.60 a month. Or about $100/year.

That's roughly a 10% savings. But if you need the second policy to cover additional dependents it may not be worth it.

Changes at Transamerica Life

Transamerica Life of Canada is re-pricing their Term 10 and 20 insurance plans effective March 16th, 2009.   Transamerica has made a commitment to remain an industry leader in this market.

Transamerica's Term 30 plan will not be re-priced which is unfortunate because their Term 30 plan has some very unique features including the ability to take a partial return of premium or have a reduced paid up permanent life insurance policy after 20 years. What that means is after 20 years if the insured wants to stop paying he/she can get back part of his/her money or have a reduced amount of life insurance with no additional payments.

The reduction in rates also came at the expense of two of their more innovative plans.  Effective March 16, 2009 Transamerica is withdrawing their Protector Plus and Critical Advantage Products. Protector Plus is a very popular policy with fully guaranteed premiums; guaranteed cash values and the ability to have multiple lives covered under one policy thereby reducing the insurance administration costs.

Transamerica's Critical Advantage is a global medical care insurance policy providing immediate access to advice and the best care through Best Doctors. Transamerica said the changes were done so they could keep their focus on their remaining Term and Universal Life product lineup.

If you would like more information, please give me a call at 905.248.4849 to discuss your own situation.

The Cost of Losing Your Life Insurance Policy

Recently my phone rang from a policyholder who had lost her life insurance policy and she wanted a duplicate policy.  I explained that almost all life insurance carriers charge for producing a duplicate policy and most of the policy particulars can be obtained for free by requesting a policy summary from the insurance carrier.  It should be noted that the policy document is not required at the time of claim.

The following is a list of what the different life insurance companies in Canada charge to produce a duplicate policy.

• AIG - $50.00

• AXA - $10.00

• Canada Life - $100.00

• Desjardins - $20.00

• Empire Life - $25.00
  (if the policy is under 10 years old, otherwise it is not available)

• Equitable Life -$20.00

• Industrial Alliance - $30.00

• RBC Insurance - $25.00
  (they may waive the charge if it is a recently issued policy)

• Standard Life - $75.00

• Transamerica Life - $50.00

• Unity Life - $25.00

If you would like more information, please give me a call at 905.248.4849 to discuss your own situation.

Final Expense Coverage: The Edge

The Edge has introduced a series of life and living benefits plans called the "Encore Plan". The policies are available without a medical and with no health questions. The life insurance plan is underwritten by Industrial Alliance and the face amounts can be $5,000 to $25,000. Applicants can be anywhere from 30-85 years old, and the plan provides coverage to age 100.

The plan is suited for individuals with significant health issues who want to cover the cost of a funeral and/or other related final expenses.  The plan pays out 4 times the benefit in the event of an accident (less any Living Benefits already paid). A unique feature is the policies built in Living Benefit. If the insured is diagnosed with a prognosis of death within twelve months, he/she will be paid 50% of the Final Expense Coverage inforce provided the policy has been in force for at least 2 full years at the time of diagnosis.

Standard Life’s Term 100 Critical Illness Plan

Standard Life has a new dynamic Critical Illness lineup. The plan termed Protecta covers 24 illnesses including cancer, stroke and heart attack.
Protecta plans are available in terms of:

• 10 years

• to age 65

• to age 75

• to age 100.

The Protecta Term 100 plan offers a variety of features unique to the Canadian marketplace. The premiums are guaranteed to never increase for the insured's lifetime. It should be noted that Canada is one of the only countries in the world to offer Term 100 Critical Illness policies. Standard Life's Protecta 100 plan is also the only plan in Canada to have a built in maturity benefit if the insured lives to age 100 and has not made a claim.

Protecta 100 is available in face amounts as low as $25,000 and as high as $2,000,000 and the policy has riders available which pay a return of premium on death or surrender. A snapshot of the pricing is below:

A 30 year old male non smoker can take out $100,000 of Potecta 100 coverage and the base monthly cost is $59.58 a month. The return of premium on death or surrender riders are another $24.18 a month.

If you would like more information, give me a call at 905.248.4849 to discuss your own situation.

Life Insurance and Retirement

As the baby boomers approach retirement in the upcoming years, many will have questions about what they should do about their life insurance at retirement?

The first question many people will ask is why do I need life insurance when I retire?

While it is true that the primary need for life insurance for most Canadians is to replace lost income, life insurance is still needed and wanted by many pending retirees. Some of the additional needs for life insurance at retirement can include final expenses, payment of a remaining debt, probate fees and taxes from an investment property or retirement plan. Most investments and retirement plans in Canada allow the transfer of assets from one spouse to another but upon the death of the surviving spouse there can be a huge tax bill.

Life insurance is a great way to cover all of the above expenses and best of all the funds are paid out tax free. Qualifying as you get older can be tricky. Many group plans allow you to convert to an individual plan without a medical but an extra premium is usually factored in for health issues. Many life insurance companies are also more aggressively targeting the hard to insure market. But the best advice is to apply now - life insurance gets more expensive the longer you wait.

If you would like more information, give me a call at 905.248.4849 to discuss your own situation.

BMO buys AIG Life of Canada: What does it mean for existing AIG life insurance policy holders?

I've sold a lot of AIG Life of Canada policies to my friends and clients over the last three plus years. They are great policies from a historic giant of the insurance industry. But I have to say that I was pretty shocked when AIG's parent company in the US needed to be bailed out in September 2008.

The risks to policyholders are minimal as I wrote to you then as AIG policies are covered by Assuris which means the greater of $200,000 or 85% of policies face value is guaranteed by Assuris in the case of insolvency.

But the bloom was off the rose and our AIG sales have nosedived since the bailout. Clearly AIG Life of Canada was losing ground quickly and something needed to be done to maintain the value of the business.

Well that something has been done and it's a dozy. AIG Life of Canada has been sold to the Bank of Montreal for $375 million in cash.

How does that affect existing AIG Life of Canada policy holders?

It's great news.

Your insurance policies are still backed by Assuris in a worst case scenario, but first they are backed by the Bank of Montreal who has over $416 billion in assets. So you don't hold the greater of $200,000 of 85% of your original policy any more (worst case) but 100%.

It's also great news for us and future policy purchasers, as we like AIG Life of Canada policies. If the Bank of Montreal keeps the current policy packages more or less the same, that's another set of superb and balanced policies out in the Canadian insurance market available to consumers.

In my opinion, the sale was really the best move possible for all sides, as:

• AIG Life of Canada was struggling to attract the same volume of business as in the past and risked significant internal downsizing and a loss in value.

• The Bank of Montreal needed a substantial insurance purchase to be able to compete effectively in life insurance against other major Canadian insurance players.

• Canadian consumers need multiple strong players in the life insurance market.

• Independent brokers benefit from confidence in the insurance market.

Let me know your own thoughts or if you have any questions.

Tax Free Savings Account

Starting in 2009 Canadians age 18 and older with a valid Social Insurance Number can save up to $5000.00 a year TAX FREE in the new Tax Free Savings Account (TFSA).  It is important to understand that contributions to the TFSA are not tax deductible for income tax purposes but interest and dividend income as well as capital gains earned inside the TFSA will not be taxed, even when withdrawn.

The money can be withdrawn at any time for any purpose. It should be noted that certain investment accounts may charge penalties to withdraw the funds within a certain time period.  The amount withdrawn from the TFSA can be put back in without reducing the investor's contribution room.

Some other interesting features of the TFSA: unused contribution room can be carried forward to future years; neither income earned in the TFSA nor withdrawals will affect the investors eligibility for federal income-tested benefits and credits (this is potentially great news for seniors and low income families looking for a place to stash a little extra money) and contributions to a spouse's TFSA will be allowed and TFSA assets can be transferred to a surviving spouse upon death.

If you would like more information, please give me a call at 905.248.4849 to discuss your own situation.