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.
 

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...)

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...)

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...)

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.

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...)

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.

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

You can get quotes on RBC 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

We’re breaking down Sun
Life’s Long-term Care plan.
photo by Diana Malm

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'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 Long-term Care Insurance: A Closer Look

RBC 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:

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.

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:

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:

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:

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.

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 policyholders and their families a plethera of counselling, guidance and referral services to help you through the tough times at no additional cost.

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.

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:

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.

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:

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:

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.

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.

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.

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've contracted the disease.

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.

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.

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 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 reinsurance. Their operations are divided into Great-West Life, London Life, and Canada Life. They have a combined $333 billion in assets under management.

Declining Fees on Money Market Segregated Funds

The recent dip in interest rates has forced insurance companies to revisit 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.

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.

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%.

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.

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").

10 Ways to Become a Top Inurance 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.

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.

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.

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 somone 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.
(Unique Life Insurance Benefits continued...)

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.
(When Whole Life Insurance is Not a Good Idea continued...)

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 eg. Primarerica, State Farm and Cooperators employ agents that only sell their particular products. In many instances, their premiums are completely uncompetitive. 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.

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 ripoff. 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.

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.

Industrial Alliance’s Group Insurance Offering

Industrial Alliance has been offering group insurance since its 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:

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 accquisition 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.

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.

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.

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’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, you can now get a Critical Illness Policy without a medical exam.

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 lineup. 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.

Changes to Empire Life’s Segregated Fund Lineup

Empire Life has made important changes to its segregated fund lineup effective June 7, 2009.

These changes were sent out May 29, 2009 to their broker network via an 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:

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, studentand 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't 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:

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.

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 stems from misinformation.

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 its imperative that you cover your investment and protect your family in case of  financial catastrophe.

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.

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.

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.

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.

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.

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 liscensed 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:

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.

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%

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."

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.

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.

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.

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 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.

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.

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.

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.

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 pretax 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.

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.

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: diabeties, 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 our a few important points to consider.

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.

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.

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.

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.

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.

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.

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 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 paticulars 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.

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.

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.

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.

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.