Unique Life Insurance Benefits

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

These policies include the following benefits:

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

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

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

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

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

When Whole Life Insurance is Not a Good Idea

Don't pull your hair out
over Whole Life

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

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

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

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

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

5 Tips for Buying Life Insurance in Canada

Make sure your
broker is independent

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

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

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

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

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

• Les Cooperants on Jan. 3, 1992

• Sovereign Life on Jan. 18, 1993

• Conferation Life on Aug. 11, 1994

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

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

Whole Life Insurance Myths

Don't get frustrated
about these myths

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

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

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

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

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

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

Canada Life Return of Premium Disability Plan

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

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

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

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

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

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

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

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

Age 47 $7,971.88

Age 54 $7,971.88

Age 61 $7,971.88

Age 65 $4,555.36

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

Banks Can Still Do Some Magic Tricks

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

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

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

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

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

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

Industrial Alliance’s Group Insurance Offering

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

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

Life Insurance

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

Disability Insurance and Disability Management Program

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

Medical, Dental and Extended Health Care Expenses

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

Travel Insurance

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

Health Spending Account (HSA)

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

Critical Illness Insurance

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

Best Doctors

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

Multi-national Pooling

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

BMO Affordable Term Life Solutions

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

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

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

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

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

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

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

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

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

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

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

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

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

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

High Cholesterol and Life Insurance

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

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

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

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

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

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

1. Height and Weight    

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

2. Insurance Company  

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

3. Total Cholesterol Readings  

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

4. Non-compliance 

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

5. Under 30

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Life Insurance and High Blood Pressure

High blood pressure doesn't
just mean doctors

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

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

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

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

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

RBC Insurance’s Simplified Critical Illness Term 10 Plan

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

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

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

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

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

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

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

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

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

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

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

A Closer Look: Term 20 Life Insurance

A closer look at Term 20
can save you money.

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

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

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

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

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

Life Insurance and Diabetes

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

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

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

(Life Insurance and Diabetes continued...)

Mortgage Insurance and Post-Claim Underwriting

Mortgage insurance
can be a trap

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

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

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

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

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

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

• Level coverage

• Portability

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

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

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

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

Changes to Empire Life’s Segregated Fund Lineup

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

Here's how the changes may affect you:

New Account Holders

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

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

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

Existing Account Holders

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

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

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

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

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

The Toronto Star Analyzes Job-Loss Insurance

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

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

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

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

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

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

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

-James Daw, Toronto Star. 

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

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

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

Who Should Consider Long-Term Care Insurance in Canada?

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

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

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

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

Who should seriously consider purchasing Long-Term Care Insurance?

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

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

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

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

Reasons Why People Don’t Buy Life Insurance in Canada

life insurance by Michael P

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

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

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

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

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

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

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