BMOs Accidental Death Benefit Program

photo by Stephane Tougard

BMO Insurance offers a series of plans which are available directly through their call centre and via direct mail campaigns. Among these direct plans is their Accidental Death Program. It's a stand alone accidental policy and applicants can qualify for $50,000.00 to $250,000.00 of accidental death protection without a medical. The premiums on the plan are as follows:

(BMOs Accidental Death Benefit Program continued...)

Reinsurance and Life Insurance

Reinsurance companies
put up the capital
to support insurance companies.
Photo by Scott

Reinsurance allows life insurance companies to transfer some of the risk on a life insurance application to a separate reinsurance company.

The reinsurer and the insurance company enter into an agreement which specifies how the reinsurer will pay the insurance company's losses. The reinsurer is paid a reinsurance premium by the insurance company. This is necessary when insurance companies are taking on large amounts of risk. An example would be a life insurance company that issues $1000 - $500,000 face amount policies, or even $1000 - $1,000,000 face amount policies . The total amount of risk underwritten is $1.5 billion, so by using a reinsurance company, the life insurance carrier is spreading out this risk and making room to take on more business.

The top five reinsurance companies, as listed on Wikipedia, are:

1. Munich Re - Germany (US 31.4B)

2. Swiss Re - Switzerland (US 30.3B)

3. Berkshire Hathaway/General Re - USA (N.A.)

4. Hannover Re Base Re - Germany (US 12B)

5. SCOR - France (US 6.9B)

For more details on reinsurance companies in Canada, please contact us as 1-866-899-4849, or for a free life insurance quote visit our Term Insurance Quote Page.

Haiti Life Insurance Cricket Sponsorship

LSM Insurance Cricket for Haiti

Following Haiti's worst earthquake in its recent history, Life Insurance Canada decided to help and contribute to this country's regeneration. Together with The Cricket Champions League the support event called 'LSM Insurance Cricket for Haiti' was launched this February at two places at the same time.

(Haiti Life Insurance Cricket Sponsorship continued...)

Insurance for Professional Athletes

Lance Armstrong by Robert Montalvo

Professional athletes have unique life and living benefit insurance needs.

Their occupation and their incomes present a unique risk for insurers. Just as an example, the highest earning Olympic athletes in the 2010 Olympic Winter Games are:

1. Shaun White USA Snowboarding - $8 million US (Tie)

2. Kim Yu-Na South Korea Ice Skating - $8 million US (Tie)

3. Lindsey Vonn USA Alpine Skiing - $3 million US

4. Ted Ligety USA Alpine Skiing - $2 million US

5. Apollo Anton Ohno USA Speed Skating - $1.5 million US

6. Bode Miller USA Alpine Skiing - $1.3 million US

7. Gretchen Bleiler USA Snowboarding - $1 million US (tie)

8. Lindsey Jacobellis USA Snowboarding - $1 million US (tie)

9. Hannah Teter USA Snowboarding - $1 million US (tie)

10. Maria Riesch Germany - $1 million US (Tie)

*Source: Forbes

Now with outstanding performances by Alexandre Bilodeau, Maelle Ricker, Kristina Groves, Jon Montgomery, Tessa Virtue and Scott Moir, Canadian Olympians are sure to join their ranks as sponsors get on the bandwagon of their podium success.

Life insurance can be available to them, but the following

Criteria must be met:

• The insurance company will require Canadian citizenship or landed immigrant status.

• They must be a Canadian residents for taxation purposes.

• They must have a Canadian mailing address (more than just a Postal Office Box).

• They must have a valid social insurance number.

• They must have the intention to return to Canada if playing outside of the country.

All life insurance applications will also need to go through reinsurance. Reinsurance is purchased by an insurance company (Insurer) from a Reinsurer as a means to transfer risk (loss or losses). For example, if an Insurer sells one thousand policies, each with a $1,000,000 policy limit.  (The amount the Insurer could pay on the policy) Theoretically, the Insurer could lose $1,000,000 on each policy - totaling $1 billion.  As a result, it is better to pass some potential risk to a reinsurance company.

Obtaining critical illness coverage, can present a greater challenge for athletes. The maximum issue amounts from the five companies surveyed was $1,000,000. In addition to meeting the life insurance underwriting criteria, coverage would likely have an exclusion for paralysis, coma, loss of vision, and a general loss of an independent existence.

None of the five companies surveyed would offer disability coverage, but coverage may be available via specialty carrier at much higher premiums and more with restrictive features than traditional plans.

For more details, you can contact us at 1-866-899-4849, or visit our Instant Quote Calculator.

Understanding ‘Age Nearest’ Life Insurance Pricing

Why the long face?
Now your age can save you money
on insurance
Credit: Sergio

Virtually all life insurance companies in Canada offer 'Age Nearest Pricing'. 'Age Nearest' translates into the applicant being priced by the insurance company at the age nearest to their next birthday. For example, someone who's born on July 1st would be priced at their next birthday for any application which is issued after January 1st.

Most insurance companies do allow the applicant to backdate his or her application up to six months to 'save age' and thus lower his or her premium, but the applicant must pay for any back premium.

Sun Life was one of the last Canadian companies to offer 'Actual Age' pricing, versus 'Age Nearest' pricing, but they just changed it on their Sun Term products, and in a recent communication said it would be following suit on its other life insurance programs.

For more details on age nearest pricing, please contact us at 1-866-899-4849, or you can visit our Instant Quote Page.

What Driving Can Mean for Insurance

Driving can effect your rating.
Photo: by Marco Gomes

It may surprise you to learn that the mere fact you have a driver's liscense can impact your qualification for life insurance.

This is because insurance companies know that motor vehicle accidents are the leading cause of death among young people, due largely to exccessive speed and the presence of alcohol. For older drivers, (65 and over) driving can indicate to an insurance company the beginnings of underlying cognitive degeneration.

As a result, the following factors are examined by underwriters when the applicant is known to be a driver:

• Current age

• Types of infractions

• How many DUIs?

• Any other suspensions and how many?

• Did you have an accident and if so, how many?

• Any other risk taking avocations?

The underwriters will analyze the number and types of violations. They will want to know the date of both your last violation and your last suspension and they will want to know the length and reason for your suspension for a chance at being fast tracked.

DUI's cannot be considered for a minimum of six months following a license suspension. If there are additional infractions, the wait time extends to 12 months. A few minor infractions will get you standard rates. An average case means an extra $2.50 to $5.00 on your monthly premium for every $1000 of coverage for a minimum of three years. Multiple DUI's are an automatic decline.

If you want to explore your own insurance needs, visit our free Term Insurance Quote Page, or call 1-866-899-4849.

Any Occupation Definition for Disability Insurance

Any occupation means
permanently disabled.

The 'Any Occupation' disability insurance classification is the least liberal, and generally the least expensive, type of disability insurance. A typical 'Any Occupation' definition may read as follows:

"Total disability means that, due directly to injury or sickness, the insured is unable to perform the important duties of any gainful occupation for which he/she is reasonably qualified, based on his/her education, training, or experience, and the insured is receiving the appropriate care and attendance of a physician who is licensed to practice in Canada."

The 'Any Occupation' definition of disability asks the question: Could the insured work in his or her own occupation or another gainful occupation? If the answer is no, then the insured is considered totally disabled. Although there are policies that feature the any occupation definition from day one, it is primarily found as the second part of a limited regular occupation definition.

For example, many group plans offer a 'Regular Occupation' definition for the first two years of the plan, and then switch to any occupation definition.

For more details, feel free to contact us at 1-866-899-4849, or visit our online Disability Insurance Quotes Page.

RBC Insurance’s Quantum Series Disability Plan

We've found a disability plan for
professionals

RBC Insurance's Quantum Series Disability Plan is an affordable disability insurance solution for professionals.

The plan uses a unique loss of income definition for disability. Under this definition, if the insured is not able to earn any income because of an injury or sickness, the full benefit is payable. If the insured’s earnings were reduced directly due to an injury or illness, a percentage of the benefit is payable.

Below are two examples of pricing:

Example 1
A 45-year-old, male non-smoker, who works a pharmacist, making a Net Income $100,000 a Year, qualifies for a maximum monthly Benefit of $5,100/ month).

Based on a 90-day elimination period and a benefit period up to age 65, the monthly premium is $153.75/month

*The above individual qualifies for RBC Insurance’s 4A, i.e. their highest classification.

Example 2
A 35-year-old, female non-smoker, who works as a salesperson, with no service, repairs or delivery duties, who is making a net income of $55,000/year.

Based on a 90-day elimination period and a benefit period up to age 65, along with a cost of living rider, which increases the monthly benefit by accounting for the cost of living, the monthly premium is $126.36/month.

*The above individual qualifies for RBC Insurance’s 3A classification, but salespeople can also qualify for an upgraded classification and lower premium if certain criteria are met.

For more details, you can contact us directly at 1-866-899-4849, or you can visit our online Disability Insurance Quotes Page.

How to Still Qualify for Life Insurance After a Stroke

A stroke doesn't have to wall you off
from life insurance
Photo by Lisa Brewster

Just because you have had a stroke doesn't necessarily mean you will always be disqualified for an individual life insurance plan. Of course, Guaranteed Issue or Simplified Issue plans that include little to know medical plans will always be an option.

The underwriters will base their ruling on the following criteria:

• Current age

• Date of diagnosis and age of onset

• Current symptoms/extent of neurological deficit

• Cause of stroke

• Treatment

• Medication

• Number of strokes

• Smoking history

• Whether or not you lead an active lifestyle

• Blood pressure and cholesterol readings

• Any concurrent serious impairment you may have

Make sure you submit all of your medical records with testimony from all of the doctors involved in your treatment. It is important you also record any lifestyle modifications and how active you are able to be. This will help get you on the fast track towards approval.

You also must keep in mind that you will not be able to apply until 12 months after your last stroke. Multiple strokes usually means a decline and the average price rating is between 150-200% if you are approved. Keep in mind that the more recent the stroke and the younger the applicant - the higher the rating.

If you like to obtain pricing for your own life insurance needs, visit our free online Instant Quote Page, or call us at 1-866-899-4849.

A Synopsis of Guaranteed Life Insurance Policies in Canada

The best and worst GI Plans
laid out just for you.
Photo by Colin

Guaranteed issue life insurance coverage is available without a medical and there are no health questions - acceptance is guaranteed. However, because of the generally high premiums, limited benefit amounts and numerous coverage restrictions, this type of coverage should generally be thought of as a "Last option life insurance plan."

Simplified issue life insurance plans have no medical tests, but generally include three to 12 health questions. Simplified Life plans have lower premiums and higher coverage levels than Guaranteed Issue plans.

Traditional life insurance plans have medical tests and a full range of health and lifestyle questions. Most people qualify for traditional life insurance and it is the most affordable type of life insurance.

The following is a snapshot comparison of the main guaranteed issue life insurance carriers in Canada:

1. BMO Insurance Guaranteed Life Plus - The plan is available to those age 40 to 75. Five premium bands are set at either $20.00 a month, $30.00 a month, $45.00 a month, $60.00 a month, or $75.00 a month. Five times the death benefit is paid out if the insured dies by accident prior to age 85. The regular death benefit is limited to a return of premium with no interest in the first two years.

2. Manulife CoverMe Available to applicants age 40 to 75. Coverage available $5,000.00 to $20,000.00 Five times the death benefit, if the insured dies by an accident prior to 85. If the insured dies by accident in the first two policy years, the return of premium plus 10% interest.

3. CARP Guaranteed Issue Life Insurance
The plan is available to applicants age 50 to 80 and includes benefit face amounts of $2,500 to $25,000. If the insured dies by accident in the first two policy years, the insured receives a return of premium plus 10% interest. The policy is paid up at age 100.

4. The Edge Guaranteed Issue Plan. The plan is available to applicants age 50 to 85. It also includes $2,500.00 to $25,000.00 of coverage. In addition, the plan offers a return of premium plus 10% interest if the insured dies in the first two years. The Edge is underwritten by Industrial Alliance and rates vary from province to province. Premiums can adjust on a class wide basis. You can add a critical illness benefit to the plan or an accidental death and dismemberment feature of up to $500,000.00 of coverage.

Below is a pricing comparison of the four plans for a 60-year-old female non-smoker:

• BMO Guaranteed Life Plus - $10,150 of coverage is $60.00 a month

• Manulife Cover Me - $10,000.00 is $38.50 a month.

• CARP Guaranteed Life Insurance - $10,000 is $38.76 a month.

• The Edge - $10,000.00 is $65.23 a month.

You can get more details by visiting our website or by visiting our non-medical life insurance quote page Non-medical Life Insurance Quote or contacting us at 1-866-899-4849.

Group Life Conversion Option

Strike out on your own
with group conversion.
Photo by Lee Chisholm

Most employee benefit plans  provide group life coverage, which allows the applicant to convert their group plan, without a medical evaluation, to an individual life plan upon the termination of their employment. This can be a good value to applicants who have serious health issues, such as a history of cancer, stroke or heart disease, which can make individual coverage difficult to attain.

The insurance company does buffer itself by charging a much higher premium on group life conversion. This extra premium is meant to mitigate its risk that the applicant may not be in good health at the time they convert their coverage. Be aware that most group conversion plans are priced 50 to 100% higher than equivalent individual life insurance coverage. There are also limitations on the face amounts and the type of plans group life policies can be converted to. Most group plans have a maximum conversion amount of two times the employee's salary up to $200,000.

In addition, policies are often limited to a one year term. Some insurance companies will allow the applicant to try and obtain individual life insurance coverage via a group alternate, but if he/she is not approved (as long as it is within a certain time period) they can proceed with the group life conversion option.

The wording and requirements for group conversions differ from company to company, so it is crucial your broker is familiar with your insurance carriers group conversion guidelines.

For more details, you can contact us at 1-866-899-4849, or you can get a term life quote by visiting our Instant Quote Calculator.

Desjardin’s Harmony New Generation: Critical Illness Insurance for Children

Protect your kids
and get piece of mind
photo by Kipp Jones

Heaven forbid the unexpected happens: Lung Cancer, Leukemia, Cystic Fibrosis. Critical Illnesses can befall children as well. As parents, we would do anything for our kids, but what if the medical expenses were already taken care of and we could concentrate on being our child's soft place to fall?

Now you can with Desjardin's Harmony New Generation Critical Illness plan for children. The parent [policyholder] receives a lump sum payment that can be used to stay by their child's side. Harmony New Generation also provides a refund of premiums for children that are not diagnosed with a critical illness which can free up funds to help them realize their dreams and aspirations.

The features on the plan include:

• No Policy Fees

• Permanent plan with ROP and optional death benefit

• Premium duration: lifetime or 20 years

• Covers 28 or 31 illness

• Recovery Cash Advance

• Prompt Recovery assistance services, which includes Best Doctors

If your interested in evaluating the finest Critical Illness plans in Canada, check out our free, Critical Illness Instant Quote Page, or call our office at 1-866-899-4849.

Group Life Insurance Versus Individual Life Insurance

Don't worry,
We're making it easier to decide
between individual and group insurance.
Credit: Kim S

Group Life Insurance provides coverage to plan members of an employee benefit plan, whereas Individual Life Insurance is taken out on an individual basis and applicants are not required to be part of a company medical plan. The following is a summary of the pros and cons of each plan:

Group Life Insurance Pros:
1. The employee is usually covered for a basic amount, i.e. one or two times their salary as part of their company benefit plan.
2. There are no medical requirements for basic group life coverage.
3. Optional group life coverage can often be obtained with minimum medical requirements, but there are maximums on the amount of coverage that the employee can obtain.

Group Life Insurance Cons:
1. The coverage ends when the employee leaves the company.
2. Coverage can be converted to an individual plan upon termination or retirement, but usually at a much higher premium than an equivalent individual life plan.

Individual Life Insurance Pros:
1. The insured can choose between a term or a permanent policy.
2. Preferred rates are available to applicants in excellent health with excellent family health history.
3. Individual life insurance offers much higher benefit face amounts than group life policies.

Individual Life Insurance Cons:
1. The applicant must medically qualify for an individual life insurance policy.
2. Depending on the applicant's lifestyle or travel plans, the policy may include certain exclusions.

For more details on group life coverage, please visit our Group Benefits Online Quote Page or for details on our individual policies, you can contact us at 1-866-899-4849 or visit our  Individual Insurance Instant Quote Calculator.

RBC Insurance Announces More Options for Term 10 and 20 Insurance

RBC Insurance has announced more options on its Term 10 and 20 policies at no extra charge.

These extra features include an exchange privilege and a conversion privilege.

Exchange Privilege

• The ability to exchange a Term 10 to a Term 20 without providing additional evidence of insurability.

• The exchange may occur any time prior to the 5th policy anniversary or your 60th birthday.

Conversion Privilege

• Convert your Term policy to a Permanent policy at no extra change.

• The conversion may occur up to a maximum age of 71.

If you'd like to evaluate your Term Insurance options, visit our free Term Insurance Instant Qutoe Page, or call our office at 1-866-899-4849.

Group Insurance Controlling Drug Care Costs

Prescription drugs
on the rise
Credit: Okko Pyykko

Drug costs are on this rise, According to an article in the Globe and Mail, government subsidy has tripled and the public cost has doubled. Good thing drug plans are the most significant cost component of a group insurance plan.

The following four variables can help control the cost of drug plans and keep your company’s group premiums in check:

1. The deductible - Employers and employees can share some of the cost.

2. Co-insurance - Different drugs or drug groups can be reimbursed at different percentages to help control costs.

3. Exclusion -  Certain drugs or classes of specific drugs can be excluded.

4. Synopsis - Have your advisor create a synopsis of the policy, so you can understand, and manage your drug plan for maximum effectiveness and profitability. Some insurance companies can provide statistical reports that include details on the most commonly used drugs. It is important to ensure the reports comply with federal and provincial legislation as well as CLHIA guidelines on the confidentiality of information.

For more details on group insurance and controlling group insurance costs, feel free to visit our Group Benefits Online Quote Page. You can also contact us at 1866-899-4849.

Why Buy Life Insurance?

Why buy life Insurance? credit: Robby McKee

Maybe you are one of those people who sees life insurance as an endless money pit with no immediate benefit. After all, what exactly are you paying for? It can not be seen or grasped in your hand. For people like you, the question immediately becomes -- Why Buy Life Insurance?

Life insurance is a selfless and intangible asset. Life insurance proceeds do not benefit the insured, and the benefit cannot be seen. Having said that, life insurance can impact the lives and well being of your family for generations. The proceeds from a life insurance policy are paid out TAX FREE and the reasons to buy life insurance are numerous:

1. Replace lost income. Should the insured die and have a spouse and/or dependents, large amounts of money are needed to replace this lost revenue.

2. Mortgage protection. Canadians are under an increasing amount of debt and life insurance provides tax free proceeds to cover those debts. (Mortgage Life Insurance vs. Personal Life Insurance)

3. Final expenses. Final expenses can range anywhere from $10,000.00 to $25,000.00

4. Estate preservation. Life insurance can be a great tool for offsetting taxes on a RRSP, RRIF or other non registered investment including stocks, a cottage and investment property.

5. A tax shelter. Life insurance holds many unique tax advantaged features.

For more details, please contact us at 1-866-899-4849 or visit our Instant Quote Link.

Top Simplified Issue Life Insurance Plans In Canada

What Simplified Issue
plan will you choose
Credit: cbarbi

Unity Life of Canada joined the Foresters family in April 2008 and as of Jan 23 2012 changed their name to Foresters Life Insurance Company.

Simplified Issue life insurance is available without a medical, but unlike Guaranteed Issue, there are some health questions. Simplified Issue life insurance plans have anywhere from three to 12 health questions. The more health questions the insured can answer “no” to, the lower the premium and the higher the death benefits. Most simplified issue plans also offer discounts to non-smokers.

Below is a snapshot comparison of the top Simplified Issue life insurance plans in Canada. On all of the plans except Wawanessa Life, coverage takes effect from day one:

1. Assumption Life Golden Protection. Coverage starts from day one with Built-in and paid guaranteed cash values.  The plan insures applicants up to age 85. It also includes multi-life discounts and is very well priced among applicants over 50. There's a face amount up to $50,000.00.  The plan pays out double in the event that the insured dies by accident. $25,000.00 of coverage for a 55-year-old, female non-smoker is $65.57 a month.

2. Canada Protection Plan Simplified Life Underwritten by Unity Life. The plan is available in a life-pay option or a 20-pay option. There is a free transportation benefit. Face amounts are as high as $50,000.00 with built-in guaranteed cash values. The plan is very well priced for smokers and non-smokers, but does not cover insulin dependent diabetics. $25,000.00 of coverage for a 55-year-old, female non-smoker is $60.26 a month.

3. Wawaneesa Life Final Expense Plan. With only five health questions, the policy is paid up after 20 years or at age 85. There is an automatic loan provision available in year three. The death benefit on this plan is limited to a return of premium (plus interest) in the first two policy years. No discount is available to non-smokers. $25,000.00 of coverage for a 55-year-old, female non-smoker is $89.44 a month.

4. Industrial Alliance Perspective.  Features a multi-life discount with coverage available from day one. There is discount for non-smokers and face amounts are limited to $35,000.00. Insulin diabetics do not qualify. $25,000.00 of coverage for a 55-year-old, female non-smoker is $72.05 a month.

You can get more details by visiting our website, by visiting our Non-medical Life insurance Quote Page, or contacting us at 1-866-899-4849.

Life Insurance in Canada and the Terminal Illness Benefit

What's the difference?
Critical Illness and
Terminal Illness Benefit.

Many life insurance companies in Canada offer a terminal illness benefit as a built-in feature in their life insurance policies. It's important that terminal illness coverage not be confused with Critical Illness coverage.

A Terminal illness feature means that the insurance company will generally allow the insured to access up to 50% of the face amount when the insured is diagnosed with less than one year to live.

The terminal illness benefit will be deducted from any future death benefit payout's, and is often subject to interest. Critical Illness coverage is different from terminal illness coverage, since Critical Illness is designed to help the insured with ongoing costs related to battling a critical illness.

For more details, on terminal illness coverage please contact us at 1-866-899-4849, or visit our online Critical Illness Quote Page

Life Insurance Beneficiary Designations

Learn beneficiary distinctions.
Help yourself protect your family.
Credit: Ted Bongiovanni

Life insurance beneficiary designation can either be revocable or irrevocable.

A revocable beneficiary can be changed by the owner of the policy without the signature of the beneficiary.

An irrevocable beneficiary gives the beneficiary extra ordinary powers, so that policy changes can only be made with the signatures of the owner of the policy and the beneficiary.

This is a very important distinction and because of this, irrevocable beneficiaries are often included as part of a divorce settlement. Policy changes, such as decreases in coverage or accessing any cash surrender value, require the signature of the irrevocable beneficiary on the policy.

Beneficiaries, whether revocable or irrevocable, can also be divided into either primary beneficiaries or contingent beneficiaries. Primary beneficiaries are the person, who would receive the proceeds, if the insured were to die. The contingent beneficiary takes effect if the insured and the beneficiary were to die simultaneously.

An example of this might be a husband who names his spouse as the beneficiary, but names his children as contingent beneficiaries. This will insure the policy proceeds are paid out immediately should the husband and wife die together.

It's important that if a beneficiary is a minor, a trustee be named. The trustee should be someone with whom the insured has a strong relationship and has a solid financial background. He or she should also be someone who is of sound mind, and preferably not entering their senior years.

If you have any questions, please do not hesitate to call us at 1-866-899-4849, or you can get a quote at our Instant Quote Page.
 

HSBC Term 10 and 20 Solutions

HSBC Insurance offers Term 10 and Term 20 coverage within a maximum issue limit of $250,000.

The plans are sold directly through the HSBC website and there are no medical tests. But, as always, this convenience comes at a price, as the plans are generally priced much higher than comparable traditional Term Life plans sold through independent brokers.

Below is pricing for a 50-year-old, male non smoker:

10-Year Life Term Insurance: Guaranteed Level Term

20-year Term Life Insurance: Guaranteed Level Term

If you have any questions, or would like a comaprative survey, please visit our Term Life Instant Quote Page, or contact us direct at 1-866-899-4849.