March 31st, 2010
find out rates
for a 50-year-old, male non-smoker.
Photo by Luciano Meirelles
Term 100 life insurance is essentially a stripped-down form of whole life insurance. The premiums are level for life and the policy provides lifetime protection. Unlike whole life policies, there are generally no cash values that build within the plan. This generally translates into a lower premium than is available with whole life coverage. On the downside, if the insured cancels the policy in the later policy years, there is no return of premium. There is no built-in buffer, if the insured needs to miss premiums in the future.
The following are the top three Term 100 life insurance companies for the 35, 45, and 55-year-old male non-smokers at $250,000 of coverage:
$250,000 Term 100 coverage for a 35-year-old, male non-smoker:
Empire Life: $99.00/month
RBC Insurance: $99.23/month
Cumis Life Insurance Company: $101.50/month
$250,000 Term 100 coverage for a 45-year-old, male non-smoker:
Manulife: $160.29/month
RBC Insurance: $177.30/month
Empire Life: $186.98/month
$250,000 Term 100 coverage for a 55-year-old, male non-smoker:
Manulife: $319.79/month
Industrial Alliance: $345.15/month
Western Life: $356.90/month.
One additional note to consider with Term 100 coverage is that Universal Life policies (with a level cost of insurance at the minimum premium) often have a lower cost than Term 100 coverage. These policies are essentially equivalent in terms of the cost of insurance, but universal life plans give the insured the option to put extra money into the policy should he or she choose.
An example could be a 35-year-old, male non smoker: $250,000 of Term 100 coverage is $99 with Empire Life; whereas, $250,000 of Universal Life level-cost coverage at the minimum premium, would only be $89.93 a month with BMO Insurance.
For more details, please contact us at 1-866-899-4849, or visit our Instant Quote Page.
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2 comments
March 28th, 2010
An excellent family health history
is key to receiving
preferred rates.
Photo by Mark Evans
Most life insurance companies in Canada offer preferred rates.
Preferred rates are given to those individuals who are in excellent health and have a very good family health history. Preferred rates are generally further divided into preferred and super-preferred rates. The latter is given to those individuals who are in exceptional health and have an excellent family health history. Life insurance companies will look at many variables when analyzing whether an applicant qualifies for preferred rates, including smoking/tobacco use, height and weight, blood pressure, cholesterol, driving record, family health history, risky sports and occupations, {including flying}, and past substance abuse.
Below is a more detailed snapshot, comparing how life insurance companies view build, Cholesterol and Blood Pressure in terms of qualifying for standard, preferred or super-preferred rates:
For build
Standard rates would be individuals 6' tall and under 260
Preferred rates, individuals 6' and under 225
Super-preferred rates, 6' tall and under 210 pounds
For Cholesterol\HDL ratio
Standard rates, 250\6.5
Preferred rates 230\5.5
Super-preferred, 210\5.0
For Blood pressure readings
Standard 145\90
Preferred 135\80.
Super-preferred, 125\75
For more details, you can contact us at 1-866-899-4849, or visit our Online Life Insurance Instant Quote Calculator.
March 28th, 2010
Good Brokers have access
to many plans and companies.
photo by lindsey lissau
When buying life insurance policy in Canada, there are several variables to consider. The following five tips can help you make sure you make the right decision in terms of your life insurance planning:
1. Determine if you are over or under-insured. Many Canadians, when purchasing a life insurance policy, will simply pick a number out of thin air. By taking a look at your current needs (your income replacement needs) and subtracting existing assets, including life insurance you already own, you can make a more informed decision about whether you are over or under-insured. Our Life Insurance Needs Calculator can help with that process.
2. Select a life insurance company which is a member of Assuris. Assuris will protect the consumer in the case of a life insurance insolvency. They pay out the greater of either 85% of the policy or $200,000 of policy face amount.
3. Select a company that offers preferred rates. Preferred rates are available to individuals who are in excellent health and have an excellent family health history.
4. Work with an independent broker. Independent brokers have access to a wide variety of carriers. Unlike captive agents, they are not limited in the companies and plans they can choose from.
5. Never cancel an existing life insurance policy until you have had a complete medical.
If you have any additional questions, please do not hesitate to contact us at 1-866-899-4849, or visit our Instant Quote page.
March 28th, 2010
Most disability plans allow the insured to include a 'Cost of Living Benefit' on his or her policy. This feature is usually available as a rider and is an extra cost above the basic premium.
The purpose of the rider is to provide financial security by offering an increasing benefit. If a disability strikes and the insured is out of the workplace for an extended period of time, an increasing benefit can become a crucial features.
If the insured is receiving disability benefits for an extended period of time (without any inflation protection) the disability benefits may not stretch as far as initially anticipated. The cost of living rider helps reduce the impact of inflation by providing yearly adjustments to the monthly income benefit during the duration of the insured's disability. Plan specifics vary from company to company, but in a nutshell, the following will take place: During the disability, the insured's monthly benefit will be adjusted annually based on a percentage change and/or the consumer price index.
If you have any questions, please call our office at 1-866-899-4849, or visit our Disability Insurance Quote Page.
March 27th, 2010
Still get life insurance with AIDS.
Photo by Okko Pyykko
As of 2005, there were 58,000 Canadians living with HIV/AIDS. Traditional life insurance is generally not available to people who have immune system abnormalities, including HIV/AIDS.
However, life insurance coverage is available from guaranteed issue providers and many simplified life insurance providers.
Guaranteed issue coverage has no medical tests and no health questions. So, the HIV question is not asked. There are three caveats with guaranteed issue coverage:
1) The premiums are quote high
2) The available face amounts are low and the coverage has a two-year waiting period. Meaning, that if the insured passes away in the first two years by a non-accidental death, the death benefit is limited to a return of premium, and in some instances, interest.
Simplified issue life insurance also has no medical tests, but has three to 12 health questions. The premiums are lower and the face amounts are higher. Some simplified policies pay out immediately and others have a two year waiting period. The two leading providers of simplified life insurance coverage in Canada are Assumption Life and Canada Protection Plan. Canada Protection Plan deferred life and deferred term policies have the most favorable questions in terms of HIV and AIDS history.
They read as follows Deferred Life “within the past three years, have the insured been treated for unusual chronic infection, including HIV and AIDS.” On Canada Protection Plans Deferred Term plan, which offers face amounts up to $100,000.00 of coverage, the question is even more favourable: “Within the past three years, has the insured been diagnosed with or started treatment for unusual chronic infection or immune system abnormality, including HIV or AIDS.” Canada Protection is no longer accepting new business for applicants with HIV or AIDS.
For more details, you can contact us at 1-866-899-4849 or visit our Non-medical Life Insurance Quote Page.
March 26th, 2010
disability insurance
that protects your business
Canada Life's disability plan – for business professionals and executives - is called "Lifestyle Protection" his policy has a host of riders, which can enhance the insured’s level of disability protection. One of its more unique riders is their ''Sale of Business Facilitator". This rider allows people who put a significant investment into their business, but are forced to sell it, to have additional options.
If the insured is forced to be away from his business for an extended period of time due to a total disability, the value of his or her business may significantly decrease. Selling an interest in the business may make the best financial sense for the insured and his or her family while managing a total disability. The expense associated in facilitating the sale of the business, including legal fees and accounting fees can be substantial. The sale of the "Business Facilitator Rider" is designed to help cover those costs.
The rider states the following:
“If the insured is totally disabled and sells his/her business, (in which he/she has at least 10% ownership interest) within two years of the date of receiving disability benefits, Canada Life will reimburse him or her for any independent legal and accounting fees incurred in the sale of the business. A single lump sum of up to $10,000 will be payable at the time of facilitating the sale if the insured is under age 55 and has received at least six disability benefits under the policy.”
If You have any questions, don't hesitate to call us at 1-866-899-4849 or visit our Disability Insurance Quote Page.
March 26th, 2010
Make sure your broker is attentive.
When choosing a life insurance broker there are a number of different variables to look at. If a broker doesn't possess the five characteristics below, it is unlikely he or she will remain in the business over the long run. The life insurance industry has a very high turnover ratio, especially in the agent/broker's first two years.
Make sure your insurance advisor is:
1. Persistent. While it may seem to some a negative quality to have an agent contacting you continually about your life insurance. Passive persistence is a necessary quality in sales related occupation – especially the life insurance industry. Advisors who are unable to systematically follow-up with prospective clients are unlikely to have long-term success. Life insurance is a product that is often put on the back burner, so systematic follow-up has an even higher importance in our industry.
2. Competent. Sadly, there are far too many Life insurance advisors who lack a standard level of competence. Incompetence can leave your family in the cold at their time of need.
3. Honest. It goes without saying that a good life insurance advisor is honest. But, as in any industry, there are always a handful of bad apples – ask your advisor if you can speak to any existing clients, or if he or she has any testimonials.
4. Has good back office support. A good agent/broker has a strong back office team that can assist him or her with administrative issues such as changing beneficiaries, changes in pre-authorized banking details or change of address. A good back office team can also assist with reports for semi-annual or annual reviews and provide updates on any product changes.
5. Has a complete product shelf. Captive agents are usually limited to one or two carriers, whereas independent agents are free to offer products from a variety of insurance carriers. Having said that, most independent agents only work with two or three companies. It is important that you deal with an independent broker who deals with a wide variety of carriers and is not restricted by any quotas.
For more details, you can contact us at 1-866-899-4849 or visit our Instant Quote Page
March 25th, 2010
The right kind of disability.
Photo by Sarah May Scott
When buying a disability insurance – consumers should look for the five features below. It should be noted that many of these features are only available to a select number of occupations, i.e. professionals such as lawyers, doctors, engineers or company executives.
1. Non-cancelable coverage. This means the insurance company cannot cancel your coverage or adjust your premiums on a class-wide basis. This ensures that the coverage will remain in effect until the insured turns 65. The premiums are guaranteed to never increase.
2. 'Own occupation' definition. This allows a professional that has significant investment in their occupation, including years of training and acquired experience, to work in another occupation while they are totally disabled and still receive their disability benefits. The 'own occupation' rider modifies the definition of total disability under a basic plan, so you'll be considered totally disabled even if the insured is engaged in other gainful occupation.
3. Residual disability benefit. This benefit allows those who are not totally disabled to receive residual disability payment. The insured can choose between receiving a partial disability payment for loss of time or duties, or the residual disability benefit - if they suffer a loss of income. The insured can choose the greater of the two.
4. Cost of living benefit. This is usually a rider that can be added to most disability policies, which makes sure the monthly benefit stays in line with inflation.
5. A future income option. This allows the insured to increase his or her coverage at different points in the future without evidence of insurability. However, it does require that the insured provide income evidence to justify the increase.
For more details, please contact us at 1-866-899-4849 or visit our Disability Insurance Quote Page.
March 25th, 2010
Protect your family. Photo by tldagny
Discussing and planning for your death can be an emotionally burdensome process, but not planning for your final arrangements can be equally straining and stressful for the loved ones you leave behind. That is why we are revealing the most common questions asked by those considering their own funerals:
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Who would look after my funeral arrangements, if I passed away tomorrow?
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What would I regret most about my final arrangements, if I passed away tomorrow?
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What do I expect my funeral costs to be?
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Where will the money for my funeral come from?
If you'd like more information on how the right life insurance policy can protect your loved ones when you're gone, don't hesitate to call us at 1-866-899-4849 or visit our Non-medical Life Insurance Quote Page.
March 23rd, 2010
Get insurance even
if new to the country.
Photo by Ibrahim Iujaz.
Most life insurance companies in Canada will provide life insurance to permanent residents or landed immigrants, but the following criteria will generally need to be met:
1. The applicant needs to be either a Canadian citizen, or have a permanent residence card. If the applicant has not received the permanent residence card, most insurers will require a letter of acceptance.
2. There are no minimum residency requirements in Canada, but the applicant must live in Canada on a permanent basis.
3. The applicant should have a permanent social insurance number, but many insurance companies will accept the application if it is currently being applied for.
4. If the applicant has been in Canada for less than one year, most insurance companies will do a blood profile tests with Hepatitis B and C screening along with the other medical requirements, which would be based on their age and coverage amount.
For more details, you can contact us at 1-866-899-4849, or visit our Instant Quote Page.
March 23rd, 2010
The Top Companies for Group Critical Illness
Group Critical Illness insurance sales are on the rise. As reported in the February 2010 issue of the Insurance Journal. Recent data shows that growth of Group Critical Illness sales were seven times stronger than the Group Insurance sector as a whole.
The Insurance Journal highlighted 13 of the Group Critical Illness providers in Canada. They are as follows:
ACA INA Life - The product name is the ACA Life Spectrum Group Critical Illness Plan. The plan covers a minimum of ten lives.
AXA Insurance - The product name is Critical Choice Care, with a plan minimum of ten lives.
BlueCross Life/Medavie - The product is called Enhanced Critical Illness Insurance/Life Link. The plan holds a minimum of three lives.
Co-operators - The product is Group Critical Illness. The three plans in this bracket cover three to 25 lives, 26 to 50 lives, and 50 lives and over, respectively.
Desjardins Financial Security - The product here is the Critical Illness Benefit and the plan covers a minimum of 15 lives or more.
GCI Insurance Services - The product is Vital Check and the plan covers a minimum of ten lives or more.
Great West Life - Its Group Critical Illness plan covers a minimum of three lives.
Industrial Alliance - Its Critical Illness Insurance covers a minimum amount of five or more lives.
La Capitale - Its product is known as Objective Health Security and covers ten lives or more.
Manulife - Its Group Critical Illness plan covers 25 lives or more.
Sun Life - Sun Life Group Critical Illness offers group sizes of any number.
Wawanesa Life - Their Group LTD Critical Illness plan is available to all groups and includes long-term disability.
For more details on group critical illness, you can contact us at 1-866-899-4849, or visit our Group Benefits Online Quotes Page.
March 23rd, 2010
In an insured annuity
your money goes nowhere
but up
Photo by wlodi
An insured annuity is a strategy that provides an alternative to today's low interest rate fixed investments, including GICs, T-Bills and Guaranteed Investment Accounts.
They provide a tax-efficient lifetime income and guaranteed income from the original principal investment.
How does it work?
The applicant deposits a lump sum into a lifetime annuity and takes out a equivalent amount of Permanent Life Insurance. A small amount of the income the applicant receives is taxable and a portion of this money can be used to pay the cost of the life insurance policy. The life insurance pays out to the insured’s beneficiary tax-free. A twist to this option is choosing an increasing death benefit, allowing the insured's beneficiaries to receive a death benefit in excess of the applicant's initial investment.
For more details please contact us at 1.866.899.4849, or email us at
March 22nd, 2010
Burial insurance, otherwise known as funeral insurance, is essentially a permanent life insurance policy – the premiums are fixed and the plan provides lifetime protection.
Burial life insurance policies pay out a lump sum tax free death benefit that can be used to cover the cost associated with final expenses. Funeral expenses have doubled over the last 15 years with an average price of $7,500 (including announcements, floral decorations, etc...)
Pre-planning funeral expenses can result in saving the insured's loved ones significant amounts of grief as well as saving countless arguments among family members.
There are generally three types of permanent life insurance policies:
1. Traditional permanent life policies, which can take the form of a Whole Life, Universal Life or a Term 100 plan. These policies require a medical exam and ask a full host of health questions.
2. Simplified issue life insurance plans which have no medical tests, but ask three to 12 health questions.
3. Guaranteed issue coverage which has no health questions and no medical tests.
Traditional life insurance is generally least expensive, while Guaranteed Issue life plans are going to be the most expensive and usually have a two-year waiting period on the death benefit.
For more details you can contact us at 1-866-899-4849 or visit our Non-Medical Life Insurance Quote Page.
March 22nd, 2010
Transamerica is the leading Canadian provider of term life insurance. They offer Term 10, Term 20, and Term 30 plans. Each of the policies are guaranteed renewable and convertible to a permanent plan without a medical.
The features below are part of the reason Transamerica life term policies (distributed through independent brokers) can be a great fit.
1. Preferred rates. That is, preferred rates on policies in excess of $250,000. Preferred rates are available to individuals who are in excellent health and have excellent family health history. They can provide premiums which are up to 30% lower than standard life insurance rates.
2. Multi-life policies. This allows a husband and wife to be insured under one policy, thus reducing the overall cost of individual insurance.
3. Term 30 plans. Their term 30 plans offer two unique features:
a) A reduced paid-up feature, which allows the insured to stop paying after a limited number of years and allowing a reduced amount of coverage paid-up for life.
b) The insured can surrender the coverage and take its cash-value.
4. Special rate for high net-worth clients. Transamerica introduced a special, discounted, band six rate for high net-worth individuals who are looking for a life insurance plan in excess of $2.5M.
For more details, please contact us at 1-866-899-4849 or visit our Term Life Instant Quote Page.
March 19th, 2010
Help Charity
with Great West Life's
Group Plan
Photo by Philippe Tarbouriech
Great West Life is a leading provider of group insurance in Canada. They also offer a very competitive Group Critical Illness Plan.
The plan is available for group sizes of three lives or more. They offer basic coverage amounts for children and dependants of $5,000. Coverage amounts on spouses can be a basic amount of 10,000 and further option amounts can be $10,000 to $250,000.
Coverage amounts for employees include $10,000 to $250,000 (depending on the size of the group) for basic plans and optional amounts can be another $10,000 to $250,000. There is no continuation or conversion option.
The special features are that when a benefit of $10,000.00 or more is paid, Great West Life will make a $5,000.00 donation to a registered charity of the claimant's choice.
For more details on Great West Life's group critical illness plan, you can contact us at 1-866-899-4849 or visit our Group Benefits Online Quotes Page.
March 16th, 2010
Talk to your insurance broker
about simplified
or guaranteed issue.
Guaranteed issue life insurance policies are available without a medical and with no health questions. One big caveat with guaranteed issue life insurance is that if the insured passes away in the first two years by a non-accidental death, the death benefit is usually limited to a return of premium. Some companies do offer interest on the return of premium, while others don't.
The three leading providers of guaranteed issue life insurance in Canada are BMO Insurance, Manulife Insurance and the Edge underwritten by Industrial Alliance.
Simplified Issue policies are an alternative to Guaranteed Issue life insurance. They also are available without a medical, but depending on the carrier, there can be anywhere from three to twelve health and lifestyle questions. Many Simplified Issue policies have coverage, which begins from day one, regardless of the cause of death. Simplified Issue policies also offer significantly lower premiums than Guaranteed Issue plans.
For more details, please contact us at 1-866-899-4849, or visit our Non-medical Life Insurance Quote page.
March 16th, 2010
Protect your investment
with whole life.
Photo by Duckie Monster
The average Canadian payed $37,700 in taxes (42.6% of their income) in 2009, compared to 20% in 1999. Many highly tax Canadians approaching their retirement or in their retirement have set aside non-registered investment funds to leave to their children or a favourite charity.
Although it's unlikely they may need the money, they are still concerned about the safety of the investments. As a result of being in high marginal tax bracket the annual taxes paid on the growth of these non-registered investments can dramatically reduce the value of the total investment. This can potentially reduce the inheritance of their heirs and impact their legacy.
Solution
Whole Life insurance can be used to preserve the value of non-registered assets to ensure the full value is received by your heirs.
By transferring the growth of non-registered investments each year into life insurance, or to pay the premium towards the life insurance policy, you can minimize the amount of overall taxes paid.
A tax advantage with permanent life insurance allows for the accumulation of cash-values inside the policy (within certain legislation limits) without paying income tax on this growth. The death benefit also grows on a tax-free basis and is also paid out to the beneficiaries tax-free upon death.
For more details on how life insurance can be used to minimize taxes, please contact us at 1-866-899-4849 or visit our permanent life insurance Instant Quote Page.
March 16th, 2010
"The most recent data available shows that the growth of group critical illness sales was seven times stronger than the group insurance sector as a whole." These findings were published by the Fraser Group, an organization that has compiled statistics on the group insurance market in Canada for several years.
Ken Fraser, president of Fraser Group, says that the product is currently enjoying increasing momentum. "Our limited research indicates the rate of new sales is quite strong, around 10%, at least up to 2008. The total market shows net sales after cancellations of l.5%," he reports.
It is important to put these results in perspective: Fraser has been tracking group critical illness insurance (CI) sales for only a short time. "Up to recently, the amount of premiums has been negligible compared to traditional group life and health products. Currently, we estimate total market premiums at $25 or $30 million annually (because group insurance is renewed each year), which is only 0.1% of the total group benefits market," Mr. Fraser says.
A Fraser Group study published in 2008 found that the number of group CI policies was growing faster than total new premiums. This shows that sales come from programs with a low average premium, Mr. Fraser continues. These include programs directed at smaller employers or set up on a voluntary basis (optional programs). In these programs, only some of the employees opt for the CI guarantee in their group plan.
The group CI product was fairly immune from the economic slowdown, Mr. Fraser continues. "Group insurance is based on people who have a job. Many people who lost their jobs didn't have benefits to begin with. The group insurance industry lost maybe 2% to 3% in revenues in 2008 compared to 2007. On the other hand, claims are going down because the economy has dropped, mainly for health and dental coverage".
Group critical illness insurance product comparative table 1
Despite the increase in sales, insurers are reluctant to disclose sales results in this sector. The distribution network is sending mixed signals: some trumpet success while others see a slowdown taking shape. (See inset text p.l6).
Members of LSM Insurance team say that product sales at their firm soared by over 25% in the past twelve months.
"About a third of our groups are going with the critical illness coverage. The group CI market is working well for our brokers because more and more people are looking at critical illness products," they say.
In group insurance, unlike individual products, there is no rigorous risk selection. An employer and its workforce can obtain guaranteed basic protection regardless of medical family history. In addition, group coverage in critical illnesses guaranteed and can be provided at a discounted premium. Often, the savings can be 30% below that of an individual policy, the LSM Insurance website states.
The economic situation has even spurred sales. In a way, the economic situation is helping us because people want to make sure they get the most for their employee benefits dollar. The organization giving the benefits wants to create the most value for their members to make employees happy. That is why we are getting a lot of inquiries on that product," they add.
It is necessary to point out that during a recession, people are more anxious. They feel more vulnerable to illness and want to get proper protection. Employers that add this protection offer employees peace of mind that boosts productivity. They can then keep key employees on board.
Group critical illness business is also thriving at Groupe Sage, a Quebec-based managing general agency specializing in employee benefits. President Denis Plante pins this trend on a combination of two factors. "The cost is very low and clients are becoming increasingly familiar with the products."
Group critical illness insurance product comparative table 2
Aside from the low price, this new interest in the group CI product is fuelled by the success of the individual product, Mr. Plante continues. The need for the group guarantee is also reinforced by the fact that many Canadians have had their applications for individual Cl turned down. "Risk selection is difficult in individual critical illness. Company owners that were refused are very receptive to our arguments about the possibility of insuring without proof of health," he explains.
A typical Sage offering: a group of 500 employees, each of whom has guaranteed mandatory coverage of $5000. Employees can access an additional optional guarantee to increase their coverage to between $10,000 and $100,000, depending on their means. "We often see top managers purchasing $50,000 in coverage," he says.
In 2010, Sage will highlight the optional guarantee by systematically offering it to all groups. The firm also plans to significantly develop the market for mandatory and optional guarantees alike, thanks to an agreement with a niche insurer.
Insurers were noticeably silent when asked about their results. Let's take a look at the RBC Insurance product. A strong selling point is that, it provides individual coverage that employees can transfer when they leave their job. They then keep their coverage at the same price without having to give proof of good health, LSM team explains. (Note: This product is not included in the Group CI Product Comparative Table since it is sold to individuals within a group.)
Although the company's product is winning some praise from distributors, Ian Jack, Living Benefits Actuary, product development and pricing at RBC Insurance stops short of calling it a wave. He would only refer to increased awareness and calls the product "an emerging competitor".
Mr. Jack confirmed though that RBC Insurance is a market leader and named GreatWest Life as one of its main competitors. He refused to disclose sales results in the niche, but says the company's target is primarily companies below`500 lives, but it is also active in the over 500 life market.
"It is sold by a relatively small number of advisors. The product requires a unique sales process, and following the sale there may be additional administrative requirements that some advisors are unable or unwilling to provide," Mr. Jack says.
He points out that comparisons with group contracts or premiums are generally inappropriate. The product is an individual contract, although the risk selection is not as complete.
ACE INA, a CI specialist, declined to disclose its sales volume or its 2010 objectives, but it is surfing on a wave with its Spectrum product, Eddy Levy, Vice President, Sales and Marketing, Accident & Health confirms. "The interest is rising. It's reflected in production that we received from advisors in this niche. Our business block in group critical illness increased from 15% to 20% between 2008 and 2009," he says.
One of Spectrum's key strengths is its flexibility, Mr. Levy adds. "Employers can pay for mandatory minimum coverage of $10,000 and offer employees the option of additional protection. That's the way we sell it."
The concept is appealing, because it is generally quite affordable. Overall, the plan costs are fairly low because it is very rare to see programs that provide each employee with coverage of $100,000, Mr. Levy explains. Group Cl protection at ACE INA averages at around $20,000 to $25,000 per life insured.
Sun Life Financial mirrors the trend even if the average for its product line is higher at $25,000 to $50,000 per employee on average. "Very few employees ask for a coverage amount that exceeds the guaranteed issue protection because they do not want to complete the medical questionnaire," Alain Gobeil, Account Manager, optional guarantees at Sun Life, says. This explains the low average coverage. A Munich Re survey in 2006 found that average insurance coverage for the individual CI product was about $94,500 and the average annual premium about $1200.
Many sources say that Sun Life has energized this market, long populated with small niche players, by becoming one of the first large lifecos to openly promote it. The campaign began in April 2008. "We put in place a dedicated structure for this niche," says Mr. Gobeil, who played a central role in this effort.
As for the results of this campaign, Sun Life is keeping its sales figures to itself. "We do not publish our results. It is still a very new business sector," Mr Gobeil says. He did confirm that 2009 was the best year so far in the critical illness insurance niche. "2010 looks even better because some clients approached in 2009 had put off their decision until this year," he adds.
Group critical illness insurance product comparative table 3
by Alain Thériault
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2 comments
March 14th, 2010
Day 179 by Mitch Huang
Canada has repeatedly demonstrated good economic prospects during the last 12 months; no wonder investors start to overweight Canadian investments in their global portfolios. Scotia Capital in the latest issue of Capital Points mentions 20 advantages of Canadian economy.
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The Bank of Canada will be probably among the first major central banks to call off record low interest rates implemented to fight the recession. Most of the experts believe, it will be part of the June announcement. It is encouraging to see that the Bank is confident enough to return back to normal regime.
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Strong Canadian dollar. CAD appreciated 22% on year to year basis to USD and it is on a good way to reach parity with the American counterpart. CAD will be a safe haven for many investors.
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The same situation is when concerning CAD vs. AUD. Looney is already some 5% over the Australian dollar, however Reserve Bank of Australia is already finishing its tightening cycle, while BoC has not begun yet.
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Canadian stellar fiscal responsibility in the debt troubled world. Fiscal deficits are projected to be chopped down to 1% in the next five years; total debt-to-GDP ratio is now around 2/3 of OECD average, not to mention the US or even Japan alone.
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Corporate revenue is becoming fuelled by our strong recovery. Companies need money now.
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Natural resources are still wanted and they will be wanted even more. Well, we have them…
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Corporate tax should fall down to highly competitive 15% in 2012. While others will have to raise taxes to repay huge bailouts, foreign investors will be knocking on our door.
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Productivity growth has a good potential to start going up, while our southern neighbour will face quite the opposite – its peak is unsustainable.
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Canadian real estate bubble is almost forgotten. That's not the situation in countries like USA, UK, Ireland or Spain.
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Non-financial corporate balance sheets are sound and fit. Leverage wasn't a big hit in Canada.
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Our banking system was ranked the healthiest in the world by the World Economic Forum. Again.
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No quantitative easing in Canada!
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We may be not a dream country for free market worshippers, however our regulatory system is quite modest and flexible, compared to our friends, who are on a good way to make it much more rigid in upcoming years.
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Tax incentives on equipment investment. Combine with #7 for greater effect.
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In the light of election "rampage" of the last several years it may sound crazy, but yes – Canadian political situation is not very risky for investors.
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With the already mentioned fiscal stability, the risk of sovereign default is still kind of a myth, when talking about Canada.
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All the opportunities in idea and seed financing are not fully recognized. But there is a lot of potential.
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Effective venture capital paperwork in the Federal Budget.
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Diverse and young population with lot of connections.
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Last but not least – well educated population.
March 14th, 2010
Make sure your investments
only go one direction.
Photo by Balazs Gal
Empire Life has launched its own Insured annuity designed to provide an alternative to regular, low fixed income investments. An insured annuity is designed to provide a tax-efficient, lifetime income and preserves or increases the money available to your estate.
Simply, the annuity provides the income and the life insurance policy it comes with preserves the capital you already have by providing a tax-free payout in the event the holder passes away.
Normally, there are two approaches available when purchasing an Insured Annuity: Traditionally, capital is used to buy an annuity and part of the income generated goes towards a life insurance policy.
With Empire's product, the insurance policy is pre-paid with the some of the available capital that went towards it, which means all the income generated goes towards your own lifetime income.
The chief benefit of this is a larger lifetime income while the original capital is preserved and not dipped into. The income is guaranteed for life and can be continued at the same rate for the life of your spouse. Plus, it can be completely free of upkeep, so if you don't want to, or are uninterested in managing your portfolio, you don't have to. The entire income stream can be creditor protected and separated to go towards lifestyle needs, rather than unforeseen business problems. Plus, payments are guaranteed for a minimum number of years, regardless of when the death occurs.
The income generates less tax and is eligible for the pension tax credit. It can also be preserved for heirs and charitable causes.
The one potential drawback could be that the guaranteed income flow cannot be changed or cancelled, which could be a advantage or a disadvantage depending on your life situation.
If you are interested in this, or other life insurance products, please don't hesitate to give us a call at 1-866-899-4849, or visit our Term Insurance Quote Page.
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March 14th, 2010
Get your money back on vacation
with Travel Interruption Insurance
Photo by Daniel Lobo
Picture, if you will, a 51-year-old woman who, while travelling on a tour in India, suddenly became unconscious and had to be hospitalized for three days. She had travel insurance, so she received the medical care that was needed and her hospital bills were paid. However, by the time she was discharged, her tour had moved on to Delhi.
She rejoined her tour, but unfortunately was not well enough to continue. As a result, she returned early to Canada and did not get to enjoy the rest of her trip.
That is where her Trip Interruption insurance came in handy. Without Trip Interruption coverage, she would have been out-of-pocket $2,578.00 for expenses such as catch-up costs, unused tour costs, unused prepaid hotel costs and airfare to return home early.
Travel Interruption insurance can be an excellent compliment to your emergency medical travel insurance plan. So if your trip is ruined due to medical circumstances, at least you will get your travel expenses back.
To find out more about Trip Interruption Insurance, contact us at 1-866-899-4849 and for basic travel insurance needs, get a Travel Insurance Quote here.
March 14th, 2010
Don't worry,
life insurance can pay estate taxes
Photo by Tim Samoff
According to The Globe and Mail, Ontario ranks third as the most affluent province in Canada behind Alberta and the new leader Vancouver. Though income lowered across the country between 2008 and 2009, these three provinces were able to better hold onto their wealth. With so many wanting to maintain their wealth into the next generation, there is an increasing need for estate planning solutions.
As each year passes, it gets harder to hold onto the money you already have as the rich really do get richer and most Canadians' income stagnates. Many think as their wealth increases their need for life insurance decreases.
However, the largest burden on their estate can be the taxes they owe upon their death. This may force the sale of all of their assets, perhaps below fair market value, in order to pay the tax. Their family may be forced to sell a cottage or a vacation property to pay the taxes owing on those assets increasing value. This can potentially reduce their legacy and limit the amount of cash left for their heirs or their favourite charity.
Life insurance is one way to offset these taxes. Without life insurance, the other options include:
1. Save. You can try and accumulate enough liquid assets to leave in the estate to pay taxes the owing. But those assets also attract taxes now and potentially at death.
2. Sell assets. The estate can sell assets to pay the tax liability.
3. The estate can borrow against the value of the assets in the estate to pay the tax liability.
For more details on estate planning solutions, please contact us at 1-866-899-4849 or visit our Whole Life Instant Quote Page.
March 12th, 2010
There's hope
if you're declined.
Photo by Ibrahim Iujaz
When someone applies for life insurance in Canada, only one of three things can happen:
1. The policy is approved. This happens to about 80% of all applicants, although the number is much higher among younger applicants, since younger people are generally healthier.
2. The policy is issued, but on a rated basis. This means that the insured is approved, but the premiums are higher due to health or lifestyle issues.
3. The application is declined. Once again, this would be related to health or lifestyle issues, but in this instance the insured is denied insurance completely.
The first step to take when someone has been declined for life insurance is to find out why he or she has been declined. Insurance companies will likely not provide these details to your broker due to confidentiality legislation. The insured can get this information mailed to his or her doctor by providing authorization to the insurance company.
Once the insured finds out why he or she was declined, he can verify if there was an error in the decision and/or if the insured's health issues can be readily rectified.
If it is a condition that is unlikely to stabilize or disappear, the insured can look at non-medical life insurance solutions. Non-medical life insurance can take the form of guaranteed issue coverage, which is available without a medical and without health questions, or simplified issue coverage, which is available without a medical, but with anywhere from three to twelve health questions. Simplified issue plans however, can offer coverage from day one and offer lower premiums and higher face amounts than guaranteed issue life insurance plans.
For more details, please contact us at 1-866-899-4849 or visit our Non-medical Life Insurance Quote Page.
March 10th, 2010
Child life policy.
Credit: Eric McGregor
For most people, a life insurance policy is a way to protect assets or maintain a lifestyle for dependents when the main breadwinner passes away. This makes such policies for children seem unnecessary and even morbid.
But insurance brokers of LSM Insurance, a leading provider of on-line life and health insurance solutions, argues juvenile policies can be a financial "gift" for parents to bestow upon their children, ensuring lifelong coverage at a relatively low price. A Term 20 policy begun when a child is two, for example, will be fully paid by the time the child leaves university, can be upgraded at specific milestones, and means the child is covered even if he or she later develops a serious medical condition.
"It's an added bonus you can do for a child," they say, noting such policies are recommended for parents who are fully insured themselves. "The idea behind it is to get low premiums and protect their insurability," agrees Marie-Claude Poulin, a life insurance product-development analyst at Industrial Alliance. "It is easier to insure someone as a kid than when they are 35."
The cost differential alone can be substantial. A C$100,000 policy on a two-year old is C$290 a year, or C$5,800 over a 20-year term. The same policy on a 25-year-old is C$423 a year, or C$8,460. A 45-year-old would pay C$1,034 a year.
But the biggest advantage is that the policy is in place before any health issues surface, an important consideration in an era in which autism and child diabetes are on the rise. This could also be attractive for families with a hereditary conditions such as cancer and heart disease. Some policies even include a guaranteed insurability rider that allows coverage to be increased by C$300,000 or C$500,000 without evidence of insurability, at any age.
While parents may shy away from the idea of preparing for their child's potential death, accidents and illnesses do happen. In these tragic cases, LSM professionals say, the insurance policy not only helps pay the C$10,000 to C$15,000 cost of a funeral, but the remaining funds could allow the parents to take an extended leave from their jobs to mourn.
"Maybe it gives them six months to get their lives back on track."
Parents also frequently take time off work if a child is struck with a severe illness and needs constant care. In these cases, a relatively new product which combines life insurance and critical-illness insurance is available.
Industrial Alliance launched its "health duo" policy in early 2009, combining a whole life policy with critical illness coverage for a child until age 30. The policy allows parents to withdraw 50% of the face value to pay for expenses, if their child is diagnosed with a critical illness. Later, the critical-illness coverage can be converted to permanent life insurance without proof of insurability. The cost is only slightly higher than a regular juvenile policy, Poulin says, and includes clauses that increase coverage after age 15, if the child is claims-free.
For more details, you can contact us at 1-866-899-4849 or visit our Instant Quote Calculator.
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March 10th, 2010
La Capitale
La Capitale offers a variety of term life and permanent life policies at competitive rates.
They have a special niche on their Term 20, Term 25 and Term 30 riders. These term riders are available on non-participating individual and joint permanent policies. Any rider for $100,000.00 or more will be given the premium band on a $1,000,000. This results in the insured paying substantially lower premiums on a La Capitale plan with under $1,000,000 of coverage.
Life insurance companies generally have five or six rate bands on their life insurance products. The higher the face amount, the higher the rate band and the lower the cost of insurance per thousand dollars.
For more details, call us at 1-866-899-4849 or visit our Instant Online Quote Page.
March 9th, 2010
Nearly 200 players including under-19 and women cricket players attended the opening ceremony of a three-week cricket tournament in Toronto will be played to help raise awareness and funds for the disaster relief effort in Haiti.
(LSM Insurance Helps Cricketers raise funds for Haiti victims continued...)
March 8th, 2010
La Capitale now offers a unique combination life and disability insurance plan.
The life insurance portion can either be a term life or a permanent policy and the insured has the option of adding a disability income benefit. The minimum benefit amount is $250.00 a month, while the maximum benefit amounts are $5,000.00 a month.
If the disability insurance is used to cover a mortgage loan or a line of credit, the maximum monthly disability benefit is 2,000.00 a month. The elimination period is 90 days, but it is retroactive to the end of the first month of the policy. The monthly benefit periods can be two years, five years, or until expiration of the coverage.
Issue ages on a 20-year term policy can be 18 to 55. On a 25-year term policy, they can be 18 to 44 and on a 30-year term policy can be 18 to 39.
For more details, you can contact us at 1-866-899-4849, or visit our Disability Insurance Quote Page.
March 7th, 2010
Wawanesa Life has renamed its non-medical life insurance plan: Instant Issue Life Insurance. The plan now provides 5,000.00 to $50,000.00 in face amounts, handed out in Increments of $2,500.00. The non-accidental death benefit is limited to a return of premium plus interest in the first two policy years.
The plan is a simplified-issue plan, rather than a guaranteed-issue plan, so there are no medical tests and no health tests. Wawanesa’s plan only has five qualifying questions:
1. Within the last two years, have you had a stroke, heart attack, or been advised to have heart surgery?
2. Within the last three years, have you consulted a physician for, or received treatment for, cancer?
3. Within the last three years, have you been declined for individual life insurance by Wawanesa Life or any other insurer?
4. Have you been diagnosed, treated for, or had any indication of AIDS, or AIDS-related complications?
5. Are you currently restricted by a wheelchair, bedridden, hospitalized, or confined to a nursing facility requiring full-time care?
If the insured answers "yes" to any of the above questions, coverage is not available.
For more details, you can contact us at 1-866-899-4849, or visit our Non-medical Life Insurance Quote Page.
March 7th, 2010
The best Whole Life policies
for your family
Credit: tldagny
As the name describes, whole life insurance provides for the insured's entire lifetime. The policies can generally be broken down into two types:
Participating Whole Life policies participate in the insurance company's profits. These plans provide level premiums and lifetime protection, but also have a higher cash-value and an increasing death benefit that is based on the insurance company's dividend scale.
Non-participating Insurance Policies also provide fixed premiums and lifetime protection. These policies have a lower initial premium, as the death benefit is level, and all values within the plan are generally fully guaranteed.
It is difficult to compare participating Whole Life policies because of their different dividend scales.
However, Non-participating Whole Life Policies are very easy to compare and you can get an instant quote at our Whole Life Insurance Calculator.
Below is a listing of the top five Whole Life Non-participating 20-year Pay policies in Canada, at $250,000.00 for a 40-year-old, male non-smoker.
Manulife: $204.13/month
Western Life: $208.55/month
Empire Life*: $214.20/month
Desjardins*: $226.13/month
L’Excellence: $226.35/month
*Empire Life and Desjardins have the highest guaranteed cash-values after 20 years at $51,500 and $53,900 respectively.
For more details, you can contact us at 1-866-899-4849 or visit our Instant Quote Calculator.
March 7th, 2010
It may be risky
to get insurance online
Photo by Duckie Monster
In answer to the title, the short answer is, "no." The long answer is, it may cost you more money than buying life insurance through traditional channels.
There are four reasons for this.
1. Some websites only offer their own in house plans. This can result in paying a significant premium above those offered by independent brokers. Independent brokers work with a variety of companies and can shop for the best possible solution at the best possible price.
2. By not getting a thorough understanding and analysis of the plan you are buying, you may purchase the wrong plan. This could cost you and your family thousands of dollars.
3. If you have health issues and are declined, you may limit yourself in the types of non-medical life insurance policies you could qualify for.
4. Your policy may have certain limitations and exclusions, which may not be fully explained to you. This could result in paying premiums into a policy that may never pay out.
In summary, use the Internet for educational purposes, but when you are ready to take things to the next step, make sure you contact an experienced and qualified independent broker.
For more details, you can contact us at 1-866-899-4849 or visit our Instant Quote Calculator.
March 7th, 2010
The Life Insurance Disability Waiver is a rider which can be added to most Term Life or Permanent life insurance policies. Generally, the Disability Waiver option waives the insurance premium in the event that the applicant becomes disabled.
There are three caveats with the Disability Waiver rider:
1. The amount of coverage is limited to only waiving the life insurance premium. In some instances, this may only be $20.00 or $30.00 a month.
2. The coverage generally has a four to six month waiting period. Meaning that the applicant will have to wait 4 to 6 months until his or her premium is waived.
3. The definition of disability changes to 'Any Occupation' after two years. Under this definition, total disability means the inability to work at any occupation. Therefore, if you are a computer consultant and your disability prevents you from performing your regular occupational duties, but you can still gainfully work at another occupation - You will not receive a cent!
Traditional disability insurance is not tied to a life insurance policy and applicants can usually qualify for anywhere between 50% to 70% of their net income. Professionals can get plans with a 'Regular Occupation' definition throughout the length of the contract. Under this definition, total disability means the inability to work at your regular occupation due to injury or illness. The premiums on traditional disability policies are also usually more favorable on a cost per $100.00 of monthly indemnity ratio.
One instance where Disability Waiver Riders may make sense is, where the applicant would have a hard time qualifying for traditional disability insurance due to occupational and/or health related issues.
For more details, you can contact us at a 1-866-899-4849, or you can visit our Online Disability Quote Page.
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March 7th, 2010
You're covered until 75.
Photo by Craig Cloutier
Term to 75 life insurance coverage provides level rates and a level death benefit until age 75. Only a limited number of life insurance companies in Canada offer this type of coverage. The plan does not build up a cash-value, but is generally convertible to a permanent plan without a medical.
Below are the three providers offering Term to 75 coverage for a 40-year-old, male non-smoker:
La Capitale
Term to 75: $74.73/month.
Industrial Alliance
Pick-a-Term Level to Age 75: $76.73/month.
Co-operators
Level Term to Age 75: $82.80 a month.
La Capitale plan is actually a term 35 plan, but based on a 40-year-old's age, would cover the insured to age 75.
A Co-operators life insurance premium is $98.78 a month, but dividends are paid annually and the reduction is based on the premiums shown.
For more details on Term to 75 coverage, please contact us at 1-866-899-4849 or visit our Instant Online Quote Calculator.
March 7th, 2010
What's covered by OHIP?
Every Ontario resident is entitled to OHIP for their medical care, but Canada's "Free Healthcare" that so many envy doesn't cover everything.
The following is a simple snapshot of the Health, Dental and paramedical services it does cover: (For more specifics you can contact them at 1.800.268.1154 www.gov.on.ca)
Medical Supplies: Some assistance through the Assistive Devices Program (ADP) for a variety of devices, including electric and manual wheelchairs to a maximum of 80%. The full amount of an insulin pump is covered every five years, as of September 1, 2008. Insulin pump supplies are covered annually up to a maximum of $2,400.
Podiatry: When performed in an approved facility, you get $135 maximum (plus $30 X-Ray) per benefit year ($16.40 for the initial visit and $11.45 for every subsequent visit).
Travel: In-patient services are coverd up to $400 a day and out-patient services are covered up to $50 a day for emergencies only.
Nursing and Home Care: Based on needs.
Hearing Aids: $500 per aid every three years.
Chiropractic: Not covered.
Physiotherapy: Allowed in OHIP approved clinics and long-term care facilities for ages 19 and under, as well as 65 and over to a maximum of $12.20 per visit for 100 visits a year. All others a maximum of $12.20 per visits for up to 50 visits a year if required due to overnight hospitalizations.
Osteopathy: $155 max benefit per year: $12 for initial visit, $9.50 for every subsequent visit and $25 for X-ray. Note: Very few OHIP approved practioners.
Speech Therapy: Only when performed in hospitals.
Dental: Only surgical procedures performed in hospitals.
Eye examination: One exam every 12 months for ages 19 and under, as well as 65 and over. Those receiving social assistance or with an approved medical condition are also eligible for an eye exam every 12 months.
Intraocular Lens: Standard hard/rigid and soft/foldable IOL's are covered once per lifetime per eye.
Ambulance: $45 patient co-pay.
Accommodation: A standard ward = no charge. The daily rate for semi-private is $110 to $235 and a daily rate for a private room costs $200 to $325 (not legislated).
Lab and Diagnostic Tests: See OHIP list of eligible tests. PSA tests are covered as of January 1, 2009.
Prescription Drugs: The Ontario Drug Benefit Program covers seniors and social assistance recipients. Low income recepients and seniors are responsible for a $2 co-pay per prescription. Higher income seniors must satisfy a $100 deductable, followed by a co-payment of up to $6.11 per perscription. The Trillium Drug Program is available to all Ontario residents covered by OHIP with high drug costs in relation to your income. Eligibility requires that private insurance doesn't cover 100% of their drug costs. Approved applicants are responsible for an income based deductable, in addition to a co-payment of up to $2 per perscription. ODB drugs can fall under the full benefit or be Limited Use Drugs, where the patient must meet specific medical criteria. As of January 2008, there is a new drug status called 'Conditional Listings'. Drugs with this status are considered under the full benefit. In some cases, drugs not covered at all may be considered based on need as part of a clinical review. The benefit year falls between August 1 and July 31. The Special Drugs Program provides certain drugs at no cost to patients meeting certain clinical criteria. It is approved by a designated centre/physican for the drug. Conditions covered maybe Cystic Fibrosis, Thalassemia, HIV, end stage renal disease, growth hormone failure Schizophrenia, Gaucher's Disease and some transplant patients. Cancer Care Ontario provides some cancer treatment drugs to patients meeting specific criteria.
Source: GreenShield Canada
Individual health and dental insurance is available to protect you and your family from items not covered Health and Dental Insurance. We also offer company benefit plans for small, mid size and large businesses – you can get more details here or a Group Insurance Quote here.
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4 comments
March 3rd, 2010
Insurance for Children by wester
Desjardins Financial Security offers a Life Start 15 plan, which is geared toward the Children's Life Insurance Market. The plan has the following features:
1. It is available issue ages 0 to 17.
2. Premiums are fully guaranteed.
3. The Policy is guaranteed paid-up at the end of 15 years.
4. The child is covered for his or her lifetime.
5. There are three rate paying levels: 10,000, 25,000, and 50,000. Coverage is available for anywhere from $10,000 to $100,000.
6. There is no policy fee on the plan.
7. The plan has guaranteed cash-surrender values.
Below is sample pricing for a 10-year-old boy:
$10,000.00 of Life Start 15: $138.90/month
$25,000.00 of Life Start 15: $203.25/month
$50,000.00 of Life Start 15: $307.50/month
For your own life insurance needs, visit our Term Insurance Quote Page, or call our office at 1-866-899-4849.
March 1st, 2010
A new rider
for business owners.
Credit: Lindsey Lissau
There is a new advantage to being a business owner in the market for insurance, thanks BMO Insurance and it's Business Guaranteed Insurability Option.
What is it?
It is a rider giving business owners the option of purchasing additional insurance over a ten-year span without having to go through added medical tests or questioning.
Why does it exist?
It is meant to be there for a growing business as it increases in value. As a business matures, more insurance maybe needed for the following:
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Pay additional cost. For example, the Capital Gains Tax that is brought about when the business owner dies and is succeeded by partners or family.
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Fund Buy-Sell Agreements.
How do you know if you need additional insurance for the future of your business?
The amount of additional insurance needed is directly related to your business' Net Earnings. Once Fair Market Value at the issuing of the first policy has been identified, The Business Guaranteed Insurability Option and the Maximum Option Amount can be calculated.
How do I calculate Fair Market Value?
Fair Market Value = The Weighted Average* of Business Net Earnings (BNE) over the previous three years (adjusted for non-recurring items and management bonuses) X 10
The Weighted Average = BNE of the current year X 3 + BNE one year before the current year X 2 + BNE two years before the current year X 1 = total divided by six.
If you have any questions, or would like to get a quote for a different plan, please call us at 1-866-899-4849 or go to our free, no obligation Instant Quote Page.
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