Moneysense.ca: Life Insurance – Swine flu surprise

We first warned our readers about how catching the Swine Flu could put at risk your life insurance plans in July this year.

Alas we were right and the Canadian personal finance magazine Moneysense has just run an article on the issue of Swine Flu and life insurance, quoting me.

It's nice to see things early, but it's not so nice for those who catch the Swine Flu and are unable to obtain life insurance for a year, with small children at home.

If you are thinking of getting life insurance and have not yet had the swine flu, move fast. Once you have the flu, it's too late as anything less than full disclosure puts your policy at grave risk.

With or without life insurance, the best way to deal with Swine Flu is not to get sick with it in the first place. We just published our tips on how to minimize your risk of coming down with Swine Flu.

Be healthy, be safe.

Here's the Money Sense article:

Hundreds of thousands of Canadians could come down with the H1N1 flu this season. If you're among them, and your brush with the deadly bug motivates you to take out life insurance, get ready for a shock. Insurance companies may treat you like you have the plague.

LSM Insurance representatives say that insurance companies won't treat you differently if you have the regular flu, unless you end up in hospital. But underwriters are breaking down H1N1 applicants into three categories: those who currently have the flu, those who had a mild case and recovered, and those who were hospitalized. Those who have it now won't be considered for coverage until they get better, they say, while those who have recovered from a mild case have to wait two to three months. Those unlucky enough to be hospitalized may not qualify for life insurance for a full year.

LSM's assessment is based on feedback from insurance industry underwriters. But when contacted by MoneySense, several insurance companies denied having such rules. One spokesperson told me I could qualify for a policy even if I had the swine flu right now.

To check, we called her company's 1-800 number and asked to take out life insurance. We pretended that we'd recently been released from hospital with a bout with swine flu. After several back and forths with an underwriter, the phone representative said the company wouldn't consider us until two to three months after a doctor said we were cured. "They want to see some stability before they make a decision," we were told. "Who knows if you're more prone to getting it again." The good news: assuming we did qualify for insurance later, we wouldn't be penalized for having had H1N1.

To avoid such delays, LSM Insurance team suggests that if you've been thinking about getting life insurance, you may want to do it now, while you're still healthy. If it's too late, and you need to get life insurance right after a bout of the swine flu, your only immediate option is a policy that doesn't require disclosure of any medical information. The premiums on such policies, however, can be awfully steep —usually three times as much as a normal policy.

Article by Rob Gerlsbeck
 

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.

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:

1. Wash your hands frequently.

2. Make sure you resist all temptation to touch your face, except when you're bathing and eating.

3. Gargle twice a day with warm salt water. H1N1 takes 2-3 days after the initial infection in the throat/nasal cavity to proliferate and show characteristic symptoms, basic gargling prevents proliferation.

4. Clean your nostrils at least once a day with warm salt water. Not everybody has a Neti Pot, but blowing your nose softly once a day and swabbing both nostrils with cotton balls dipped in warm salt water is very effective in bringing down a viral population.

5. Boost your natural immunity with foods that are rich in vitamin C like citrus fruits. If you have to supplement with vitamin C tablets, make sure that they also have zinc to boost absorption.

6. Drink warm liquids like tea or coffee frequently. Drinking warm liquids has the same effect as gargling but in the reverse direction. The liquids wash off proliferating viruses from the throat and bring them into the stomach where they cannot survive, proliferate, or do any harm.  

Group Insurance in Canada: Are You Paying Too Much?

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.

Age 70

• Living Care application

• Telephone interview

Age 71 or older

• Living Care application

• Face-to-face interview

• The insured's doctor will also be contacted to verify additional medical information.

As a rule of thumb, Manulife does not require lab tests as part of their long-term care application process.

You can get additional information on Manulife's Long-term Care plans, along with other long-term care providers by contacting us at 1-866-899-4849.

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.

The payout is broken down into the following four components:

1. Diagnosis Benefit Paid immediately upon diagnosis of a covered illness. (Enhanced Plan $12,000, Basic Plan $6,000)

2. Monthly Income Benefit Paid to the insured over 12 months (Enhanced Plan $1,000, Basic Plan $500)

3. Hospital Cash Benefit Paid to the insured for every day in the hospital within two days of diagnosis. (Enhanced Plan $200/day up to 100 days, Basic Plan  $100/day up to 100 days.)

4. Surgery Benefit Paid to the insured if surgery is required for a covered illness within two days of diagnosis. (Enhanced Plan $6000, Basic Plan $3,000) 

Advantages of the Plan

There are no medical tests and no health questions.

Disadvantages

There are several exclusions under the policy,the most notable being if the insured, prior to the effective date the policy, is diagnosed with a critical illness, no benefit will be payable.

Traditional Critical Illness pays out a lump sum, tax-free benefit, which the insured is free to spend how he or she wishes and this is generally more desirable than having the benefit paid in bits and pieces, dependent on a variety of requirements.

The premium for a 55-year-old, male non-smoker is $133/month. This does not stack up favourably with competing critical illness plans, which cover additional illnesses. BMO's traditional Term 10 Critical Illness would only be $89.01/month and Manulife's would be $97.79/month. Both plans offer far superior coverage. You can get a comparison for yourself by visiting our free, Critical Illness Instant Quote Page or by calling our office at 1-866-899-4849.

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.

Underwritten by ABC Insurance Services Ltd. and GreenShield Canada, the first of these is a guaranteed issue plan featuring no medical questions, and like all plans offered, covers pre-existing conditions. It's called Value: Guaranteed issue and its features can be found below:

• Only perscription drugs to age 79, unless specified by a physician, and no lifestyle drugs. (80% coverage to a maximum of $600)

• Vision Care ($125 every four months)

• Professional Services (Chiropractor, psychologist, speech therapist etc.) paid from the first dollar to a $300 maximum.

• Medical Transport (air and land included)

• Hearing Aid Replacement and Repairs ($300 maximum every four years)

• Private Duty Nursing ($1,000/year)

• Medical Items ($750 maximum/year)

• Accidental Dental ($2,500 maximum/year)

Advantages:

1. No medical questions or tests

2. Pre-existing conditions are covered

Disadvantages

1. The expense maximums are very low. It's very easy to use up $600 a year for example on prescription drugs.

Our free Health Insurance Quote Page aggregates the best health insurance policies from across Canada and can find the right plan for you. There's always someone available at our office, so call us now at 1-866-899-4849 and we will be happy to answer all of your questions about this and other 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.

Some other features of the policy include the following:

1. Issue limits are between ages 18-80

2. Policy fees are $75/year

3. Premium payment durations are either pay for 15 years or pay to 65 (ages 80-50 only, and not available with shared coverage) pay to age 100. 

The advantages of the policy include the following:

1. Their unique shared coverage option.

2. The plan is not receipt-based and the insured, while on claim, is free to use the funds however they wish.

The disadvantages of the policy include the following:

1. The premiums are not guaranteed beyond the fifth year. However, Manulife does not have the right to change premiums after the latter of 20 years, or when the insured turns 75.

2. The miminum elimination period is 90 days. Most companies have shorter elimination period options.

Below is an example of pricing for a 60-year-old, female non-smoker:

$150,000 of coverage with a benefit option of 2%, i.e. a payout of $3,000/month while on a  claim and an elimination period of 90 days. The monthly premium is $222.31/month.

You can get additional quotes and details by visting our Long-term Care Instant Quote Page, or contact us at 1-866-899-4849.

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

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:

1. The first individual Long-term Care policies were sold in the U.S. in the early 80s, according to the U.S. Dept. of Labor, with Canada following suit in the early 90s.

2. Only a handful of insurance companies offer Long-term Care Insurance in Canada and the plan features are not standardized. Therefore, it's a difficult product for brokers to deal with and not many do. Your best bet is to work with a broker who specializes in Long-term Care insurance.

3. Long-term Care plans generally offer a daily or weekly benefit when the insured can no longer perform two or more of the following six basic activities of daily living: Bathing, Dressing, Toileting, Transferring, continence and eating, or is diagnosed with a cognitive impairment, such as Alzheimer's Disease. Penncorp is the only company in Canada that only requires the insured to no longer perform one of the basic living activities.

4. Most Long-term Care policies in Canada have a five-year premium guarantee, after which time premiums can be adjusted on a class-wide basis. RBC Insurance is one of the companies to have a maximum premium after the fifth year.

5. Long-term Care plans usually pay on a receipt basis, i.e. they reimburse the insured for expenses incurred while requiring assistance. Desjardins is unique, in that it allows the insured to spend the proceeds however they wish. This can be of value if the insured wants a family member or someone other than a qualified healthcare professional looking after them.

6. Unlike life insurance, most Long-term Care plans do not offer a discount to non-smokers, i.e. they price smokers and non-smokers at the same rate. Some carriers even price males and females at the same rate. The latter provides a good value for males, but a poor value for females. Given the average female lives longer and is more likely to be on claim for a longer period of time than a male.

You can get more details on Long-term Care Insurance, as well as a quote, by visiting our free, online Long-term Care Instant Quote Page, or by calling our office at 1-866-899-4849.

Life Insurance and Obesity

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)

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

1. The first Canadian life insurance policy was issued to Hugh C. Baker in 1847 by the company he founded -- Canada Life.

2. According to Kanetix.ca (an online insurance resource) the average individual life insurance policy bought in Canada is typically a $100,000 term. For couples, a $500,000 joint term policy suffices.  

3. Assuris will cover the greater of 85% or $200,000 in the event your life insurance company goes bankrupt.

4. The following three Canadian life insurance companies have gone bankrupt: Les Cooperants on Jan. 3, 1992, Sovereign Life on Jan. 18, 1993 and Confederation Life on Aug. 11, 1994.

5. Premiums and product features can vary widely and dramatically among insurance companies, so shop wisely. We can save you time and money with our Instant Quote Calculators.

6. There is no central database for life insurance policies in North America, so keep close tabs on your own policy and share these details with your family.

7. All life insurance policies in Canada have a two-year incontestability and suicide provision. Make sure you pay close attention when answering your application information, or your family may be left with an unpaid claim.