December 30th, 2011
New question in Life Insurance FAQ:
15 years ago my then husband bought insurance policy and named me my son and his daughter from previous marriage as beneficiaries . I have been paying the premuim through my bank account. We divorced five years ago. I continue paying for the premuim. He never change the beneficiaries. His current wife hates me. What are my rights to claim this policy and can the wife claim this policy even she is not named beneciary.
The policy owner controls the beneficiary designation. If there is an irrevocable beneficary they would have to sign off on any changes. Regards, LSM
Read more questions and answers about Life Insurance FAQ.
December 22nd, 2011
Tips for selling
your book of business
when the time comes.
Photo by Lin Mei
As insurance and investment advisors reach retirement age, they start thinking about divesting their books of business and selling it to the next advisor who can manage the needs of their various clients. However, there are a few things every advisor should know going in when they're about to take the plunge and sell their book.
Do you want to actively market yourself? This is the first question advisors and financial planners need to ask themselves, according to Cameron D. Jacox and James E.C. Hilton, managing partners of Jacox-Hilton Producer Consulting, a Toronto- and Boston-based firm that helps insurance advisors and financial planners value their books of business and match buyers with sellers.
"Some advisors may want to do things privately because they don't want their clients to know that they are retiring," says Jacox. "There are different channels for finding a buyer, such as of online networks, conferences and coming to us to match you up with one of our buyers or sellers who would be interested in your book or selling a book."
There are a lot of informal selling options, including LinkedIn, which supports buy/sell book groups and financial practice groups. You can also go to your MGA or your insurance carrier and tell them of your plans, and they will generally know who is out there looking to buy or they may buy your book off of you themselves.
"Industry events and conferences are also excellent for networking, and I've seen conversations emerge that revolve around buying or selling a book on numerous occasions," says Hilton.
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How to Sell Your Book of Business continued...) |
5 comments
December 14th, 2011
What you need to do before your medical tests.
When applying for life insurance, the insured often has to complete medical tests. These medical tests can include blood pressure checks, blood profile tests, urine analyses, or ecocardiograms.
Though these tests are harmless, they should still be taken seriously and adequately prepared for. Some of the things the insured should keep in mind before completing their life insurance medical tests are the following:
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What To Do Before Your Life Insurance Medical Test continued...)
December 14th, 2011
Standard Life will not sell
individual life insurance
in the new year.
Effective January 1, 2012, Standard Life will no longer sell individual life insurance and critical illness policies.
However, the company will still serve those holding existing policies and applications received right up until December 31 and will still own that block of business after January 1. Its staff will continue to service these policies and give clients the opportunity to increase coverage, add coverage, and convert coverage. This includes converting group life insurance policies to individual ones.
Instead of continuing to sell individual life insurance, Standard Life will continue to focus on retail investments, including Standard Life Mutual Funds, group savings, and retirement plans, and group benefits and disability management, as it has since 2005.
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Standard Life will No Longer Sell Individual Life Insurance and Critical Illness Policies continued...)
December 13th, 2011
Lawyers need life
insurance too.
Photo by bloomsberries
According to the Canadian Government, there are approximately 77,935 lawyers working across Canada, 93% of whom work full-time and make a median hourly wage of $40 — exactly double all the other occupations.
This translates to just under 80,000 lawyers who could potentially need life insurance.
Life insurance can be broken down into two categories Term insurance and Permanent Insurance.
Term insurance starts off lower in costs and increases as the insured gets older. The length of the term can vary. As a rule of thumb, the longer the term, the higher the initial premium, but the shorter the term, the lower the initial premium.
Most term life policies in Canada are renewable and convertible, which means that the insured can renew coverage without a medical exam, albeit at a much higher premium. They can also convert the coverage to a permanent plan without a medical. Term rates can vary significantly from company to company, and many companies offer preferred rates, which can lower the insured’s premium by as much as 30%, but only if the insured happens to be in very good health and has an excellent family health history.
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Life Insurance for Lawyers continued...)
December 12th, 2011
Canadians are now
wealthier than Americans.
Photo by Duckie Monster
As reported in the December/January 2012 issue of Money Sense, Canada’s average median citizen's net worth has topped the United states.
A Credit Suisse 2011 Global Report found that Canadians are now officially wealthier than Americans. The median net-worth per adult in Canada is $89,014 US, but in America, it's $52,752 US.
The median amount represents an individual with a net worth in the middle range relative to the rest of the country. However, if you look at the average net worth per adult in the two countries, you will find very different results. The average net worth of Canadians in general is $245,455 US, and in the United States, the average net worth for citizens is $248,395 US.
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Canada's Net-Worth Tops the United States continued...)
December 11th, 2011
Household debt
in Canada soars.
Photo by Phil Brown
As reported in the December/January 2012 issue of Money Sense, based on stats from OECD collected in 2009, but released in September 2011, Canada now has a higher household debt ratio than any other country in the G7 except the United Kingdom:
Household Debt as a Percentage of Disposable Income
| U.K. |
170.7% |
| Canada |
148.4% |
| U.S. |
127.2% |
| Japan |
125.6% |
| France |
106.6% |
| Germany |
98.6% |
| Italy |
87.9% |
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Household Debt Ratio Continues to Soar in Canada continued...)
December 7th, 2011
You can score
well on your medical exam.
Photo by thinkpanama
Life insurance applications are often accompanied by medical tests. The following are some tips for passing the most common life insurance medical tests:
Blood Pressure
The best readings are taken in your least stressful environment. Try and minimize any caffeine, as this can impact blood pressure readings, along with stress. If you require an oversized blood pressure cuff, please let the nurse know in advance, as this could also have a major impact on the reading.
Blood profile tests
1. If a fasting blood profile is required, have a moderate dinner with nothing to eat or drink until the early afternoon.
2. Avoid strenuous exercise the day of, or the day before, the test.
3. Avoid caffeine, cigarettes, or alcohol.
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Tips for Scoring Well on your Life Insurance Medical Exam continued...)
December 5th, 2011
New question in Life Insurance FAQ:
While working in the US I took out $1,000,000 5 year term policy. I subsequently have permanently relocated relocated to Canada. My question is this: Are the proceeds from the policy taxable by the US upon my death?
I would check with the insurance company you took out the policy with or a tax advisor. We are licensed in Canada and would not have the expertise to answer you US tax question.
Read more questions and answers about Life Insurance FAQ.
December 5th, 2011
New question in Life Insurance FAQ:
what is account value on a universal life insurance policy
I think you are referring to the accumulation fund. The accumulation fund is the investment value of the policy. The accumulation fund and the cash value are not always equal the cash value is the amount the insured can actually redeem from his / her policy and is the accumulation fund minus any surrender charges and policy fees.
Read more questions and answers about Life Insurance FAQ.
November 30th, 2011
Everyone likes a deal. When laundry detergent is on sale, you stock up because you know you’ll eventually need it. The same could be true of life insurance, and your client could benefit from a volume discount by buying more.
Cost-of-insurance calculations can sometimes produce a “club pack” discount effect. Not only could a larger policy cost less per $1,000 in coverage, but it could also carry a lower overall premium.
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Get your client a discount on insurance continued...) |
2 comments
November 28th, 2011
Wawanesa offers a quick-issue
critical illness plan.
Photo by Cory Doctorow
Wawanesa Life offers a quick-issue critical illness plan. The policy is available with only eight qualifying questions and the plan pays out a lump sum, tax-free payment if you are diagnosed with one of 14 different critical illnesses. The waiting-period on most conditions is 30 days.
The following is a list of the covered critical illnesses in this plan:
1. Heart attack
2. Stroke
3. Cancer (it must be life-threatening — no benefit is payable if the cancer is not terminal)
Benefit awarded within 90 days:
4. Coronary artery bypass surgery
5. Dual kidney failure
6. Major organ transplant
7. On a waiting list for transplant
8. Paralysis (there is a 90-day waiting period after diagnosis)
9. HIV infection caused by an occupational hazard
10. Blindness
11. Deafness
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Wawanesa Life’s Quick-Issue Critical Illness Plan continued...)
November 22nd, 2011
Those surveyed believe
they don't need critical illness.
Photo by Balazs Gal
As reported in the Investment Executive, TD Insurance recently polled 1,000 Canadians in its 2011 "State of Insurance" report. Of those surveyed, 65% had children but did not have critical illness insurance.
Critical illness insurance provides clients with a lump sum payout in the case of a life-altering illness. Most base critical illness policies cover conditions such as heart attack, stroke, or life-threatening cancer.
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TD Insurance's Critical Illness Report continued...)
November 20th, 2011
There are changes beginning
in the new year
at Industrial Alliance.
Photo by Christian Birmele
Effective January 1, 2012, Industrial Alliance is increasing premiums on their Whole Life Insurance.
The increase is once again thanks to low interest rates. Many insurance companies, including Industrial Alliance, have already raised their universal life rates for the same reason.
The policies affected include the 10-year, 15-year, and 20-year paid-up policies and its Payable-to-Age 100 products. The good news is that products already in-force will not be affected because because the premiums are guaranteed, but all applications signed after January 1st will face the change.
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Industrial Alliance Raises their Whole Life Insurance Rates continued...)
November 17th, 2011
New question in Life Insurance FAQ:
If I have been paying approximately $90.00 per month for the past 12 years. How much (ball park) am I allowed to borrow against this term policy and do I have to pay it back or is there any type of penalty? How do I go about borrowing against this policy, if possible?
Most term policies do not have a cash value. You would have to contact your broker or the insurance company to see if your policy has a cash value - if it does, you can generally just write the insurance company a letter with the request. As a rule of thumb, you can borrow up to 90% of a policy's cash value.
Read more questions and answers about Life Insurance FAQ.
November 16th, 2011
New question in Life Insurance FAQ:
How long does it usually take for a beneficiary to get the death claim even after the contestability period is over and the requirements were already submitted?
The amount of time can range from a couple of days to several months. If the insurance company suspects foul play or fraud they will likely write the insured's doctor(s) for clarification.
Read more questions and answers about Life Insurance FAQ.
November 12th, 2011
Disability insurance can be bought with a return-of-premium benefit, which allows the insured to protect themselves and at the same time receive a return-of-premium if they remain in good health.
It's impossible to tell when an accident or sickness can strike. However, even if the insured is in good health and remains healthy through the life of his contract, he can purchase a disability policy where a significant portion of the premium is returned as a benefit for staying healthy.
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Disability Insurance Return-of-Premium Options continued...)
November 11th, 2011
Effective November 12, 2011, Manulife Financial will slash its Term 20 rates by approximately 4 or 5 per cent for those between ages 18 and 50, those with standard and preferred rates, and those with benefit amounts between $250,000 and $1,000,000.
Also, premium costs for younger males (25 and under) with benefit amounts between $250,000 and $9,999,999 are down by an average of 10 per cent. This reduction also applies to Term 20 Riders. Manulife plans are beneficial because their Term 20 policies are convertible to permanent plans and the policies are guaranteed renewable. These plans are also available on a joint, first-to-die basis or on a combination life basis.
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Manulife Financial Slashing Premiums on Term 20 Life Insurance continued...) |
one comment
November 9th, 2011
Group disability insurance offers an affordable insurance solution for many Canadians, but those considering them should know that these policies do come with several important limitations:
- Group disability insurance premiums are not guaranteed, and they can be adjusted by the insurance carrier on a yearly basis.
- Group disability policies can be cancelled at the discretion of the insurance company or the employer at any time.
- The employee does not control his/her disability plan. Instead, it is negotiated between the employer and the insurance company.
- Group disability insurance is not transferable to a new employer.
- Generally, the insured does not have the option to convert their group disability policy to an individual policy under a group disability policy if they leave and become self-employed.
(Limitations of Group Disability Insurance Policies continued...)
November 8th, 2011
In its October issue, The Insurance And Investment Journal published an article about new potential insurance products that should help to face the rising COI pricing increases. LSM Insurance was asked to provide independent opinion. Markham-based brokerage firm believes smaller insurers can offer interesting alternative.
"Union of Canada is one company that we started to do some work with. They have a pretty unique Term 100 product. It basically gives the insured the level premiums for life. It gives them a (50 per cent) paid up feature at the end of 15 years or age 55, whichever comes earlier... Western Life is another smaller company that still has a very good Term 100 product and they haven't adjusted the rates on it."
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Exploring Alternative Life Insurers continued...)
October 30th, 2011
Government benefit plans
are now under-funded.
Government benefit plans, such as your pension plan, are being hampered by historically low interest rates.
Pension plans use income from investments to cover the cost of their liabilities. These investments are generally placed in low-risk, interest-generating vehicles. Today’s historically low rates are leaving many government pension plans underfunded. However, because these plans are government protected, the shortfall has to be taken from somewhere.
The result is that many government plans are likely looking at cutting benefits as a way to keep their pension plans on the right side of the balance sheet.
This also means that government employees could be looking at reductions in health, dental, vision, disability, and life insurance benefits.
October 24th, 2011
New question in Life Insurance FAQ:
Am I covered if i commit suicide after having the policy for more than 2 years?
Thanks for the question - I assume you are referring to a life insurance policy. Life insurance policies have a 2 year suicide provision so the policy would pay out after 2 years assuming there was no mistatements of fact on any of the application questions.
Read more questions and answers about Life Insurance FAQ.
October 17th, 2011
Jim Flaherty has rubber
stamped the fact
that banks can no longer sell
insurance on their websites.
Canadian Finance Minister Jim Flaherty has made it official.
Under new regulations instituted on October 11, 2011, banks are no longer allowed to promote or sell "unauthorized" insurance products online.
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Jim Flaherty: "Banks Won't Be Able to Sell Insurance Online." continued...)
October 17th, 2011
Warren Buffet needs
three things
from his business partners.
Photo by Mark Mathosian
Currently ranked the third wealthiest person on Earth and widely regarded as one of the world's most successful investors, Warren Buffet obviously knows a thing or two about doing business. Recently, the Berkshire Hathaway CEO revealed three things he looks for in everyone he does business with before he ever solidifies it with a handshake or signs on the dotted-line.
The three qualities Warren Buffett requires in everyone with whom he does business are the following:
1. Integrity
2. Intelligence
3. Energy
"If the first one is not present, the other two are worthless," he says.
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What Warren Buffet Looks for When Doing Business With Someone continued...)
October 7th, 2011
New question in Life Insurance FAQ:
What if the insured person was diagnosed with Cancer after being with the Insurance company for over 3 yrs? Does the insured person can claim the whole amount of the policy he/she have been insured for? And if not how much the insured person can claim at the insurance company in view of this scenario?
No claim can be made on a life insurance until the insured dies. The applicant can apply for a Terminal Illness benenfit - most insurance companies require a letter from the insureds doctor saying he or she has less than 12 months top live. The money is paid out as advance on the death benefit and is generally limited to 50% of the policy face amoun. The maximum terminal illness benenfit usually ranges from $50,000 to $100,000.
Read more questions and answers about Life Insurance FAQ.
October 1st, 2011
New question in Life Insurance FAQ:
Hi, my mother-in-law died two weeks ago. How can I claim the insurance if I don't know the policy number is correct or not?
Sorry to hear that. You would have to contact the insurance company or the broker (they can verify if the policy is in force) and let them your mother-in-law died. They will need a death certificate you can usually obtain this from the funeral home.
Read more questions and answers about Life Insurance FAQ.
September 29th, 2011
RBC will be expanding
its insurance outlets
across Canada
Photo by Benson Kua.
After spending the past two years improving customer service at its existing branches, RBC has announced plans to open 47 new insurance branches across Canada.
"We’re going to continue to build on our retail platform,” RBC Insurance Chief Executive Officer Neil Skelding told Bloomberg. “Our retail strategy has worked very well, and we’ll continue to pursue that.”
The Royal Bank only added ten insurance branches over the past two years, compared to 43 between 2005 and 2009, delaying its goal of 100 offices to focus on sales and distribution strategies in hopes of improving customer service.
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RBC Insurance Announces 47 New Branches continued...)
September 29th, 2011
What you need to know
about the Automatic
Increase Benefit Rider.
Photo by wlodi
A select number of Critical Illness providers in Canada have an automatic increase benefit rider.
This rider allows the insured to automatically increase their critical illness insurance benefit at scheduled intervals. These automatic increases also mean that premiums go up according to the percentage of each scheduled increase.
For example, RBC Insurance offers an Automatic Increase Benefit Rider that allows the insured to exercise their critical illness benefit every second policy anniversary before the rider terminates.
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Critical Illness Insurance's Automatic Increase Benefit Rider continued...)
September 28th, 2011
New question in Life Insurance FAQ:
where can I get a copy of my policy, I lost my copy and I can't get in touch with my agent
You can get a copy from the insurance company. There is usually a charge of $25 to $50 for a duplicate policy.
Read more questions and answers about Life Insurance FAQ.
September 18th, 2011
Life expectancy
is rising worldwide.
Photo by Edwin Kelly Tofslie
If you were a newborn Canadian today, you could expect to live 80.7 years, according to a 2010 report from Statistics Canada. Canadians over the age of 65 can expect to live longer, an additional 21.3 years.
Average life expectancy has also closed between the genders, rising by 2.9 years to 78.3 between 2005 and 2007 for men and by 1.8 to 83 for women. With those numbers, Canada just misses the top 10 in countries ranked by life expectancy by one spot, according to United Nation's calculations from 2005-2010.
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How Long Does the Average Canadian Live? continued...)
September 14th, 2011
Canada Protection Plan no longer
accepts money orders.
Photo by Garry Knight
Canada Protection Plan will no longer accept money orders as a valid form of payment for new, pending, and inforce business, effective September 23st, 2011.
The decision was made because of concerns over money laundering, which opens CPP up to significant legal and business risks because money orders can be used to hide the source of money and make illegal funds seem legitimate.
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Canada Protection Plan No Longer Accepts Money Orders continued...)
September 12th, 2011
Blogger Michael Roby
endorses the iPad
for brokers.
In his blog at MichaelRoby.com, Roby highlights eight ways an iPad can improve the productivity of financial advisors and insurance brokers.
Roby writes that the iPad is the perfect size and provides insurance brokers the opportunity to download free applications that allow them to keep up with the latest financial news.
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Michael Roby Recommends an iPad for Financial Advisors and Insurance Brokers continued...)
September 12th, 2011
More Canadians are making less.
Is anyone surprised?
Photo by Duckie Monster
More Canadians are still making less money than ever before, according to the latest statistics from the Canada Revenue Agency.
Statistics Canada's latest stats from 2009 show that families of two or more earned an average of $63,800 and single individuals earned $25,500 annually in after-tax income. Add to that the CRA report that of the 24.5 million returns filed, 18 million Canadians reported income of $50,000 or less.
To put that in perspective, the National Post reported that 75% of tax-filing adults made less than $50,000 in 2009. If you add another 5 million who made between $50,000 and $100,000, 95% of Canadians made under $100,000 in 2009.
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How Much Do Canadians Make These Days? continued...)
September 10th, 2011
Insurance premiums are
all rising in Canada.
Photo by Phil Brown
As reported in the August 2011 issue of the Insurance and Investment Journal, LIMRA discovered that life insurance premiums for all networks combined increased by 9% in the first quarter of 2011 compared to the same quarter in 2010.
Also, if we look at premiums, whole life insurance sales advanced by 19%, compared with 18% for universal life for the same comparison period. However, term premiums fell by 10%.
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Life Insurance Premiums In Canada Are on the Rise continued...)
September 8th, 2011
Irrevocable beneficiary policies
must be signed off upon
if any changes are made.
Photo by Christian Birmele
Life insurance policies can have either a revocable or irrevocable beneficiary designation.
A revocable beneficiary can be changed by the owner of the policy without the signature of the beneficiary.
An irrevocable beneficiary requires the beneficiary to sign off on any policy changes. Therefore, should the policy owner wish to change the beneficiary on a policy where an irrevocable beneficiary exists, both the policy owner and the irrevocable beneficiary must sign off on it.
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Life Insurance: Revocable vs. Irrevocable Beneficiary Designations continued...)
September 6th, 2011
MIB holds medical information
on thousands of insurance clients.
Photo by Joe Hall
MIB does not stand for Men in Black in the insurance business. Instead, it's an acronym for the Medical Information Bureau, but they are rumoured to be just as secretive as the guys with black suits and sunglasses from the movies. They also could have a substantial impact on your insurance application.
The Medical Information Bureau (now known as The MIB Group Inc.) is a cooperative data exchange formed by the North American Life Insurance Industry in 1909.
MIB is the only insurance consumer reporting agency in North America, and it operates a database of medical information on individuals who have previously applied for health insurance, life insurance, disability insurance, critical illness insurance, and long-term care insurance.
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Life Insurance and the MIB continued...)
September 1st, 2011
Suicide may only entitle a beneficiary
to a return-of-premium plus interest.
Photo by Mark Sebastian
Each life insurance policy has different provisions, but one common provision that can be found in almost all life insurance policies is the suicide provision.
The suicide provision states that if a person covered under a life insurance policy dies as a result of suicide within two years from the policy issue date, then the beneficiary would only be entitled to a return-of-premium, as the policy becomes null and void.
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Life Insurance and the Suicide Clause continued...)
August 31st, 2011
500,000 Canadian critical illness policies
are now in-force. Photo by Jane Liu.
LIMRA recently reported that there are over $500,000 critical illness policies in Canada with premiums topping over $536 million.
The increase in critical illness coverage has been partially related to an increased awareness among Canadians of an overall need for critical illness coverage, as well as an increasingly deteriorating Canadian health care system.
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There are Now Over 500,000 In-Force Critical Illness Policies in Canada continued...)
August 27th, 2011
New question in Life Insurance FAQ:
Ten Years ago I donated one of my kidneys to my wife. Policies we had at that time stayed, but when recently I tried to increase my policy (with Manulife - group plan with engineers) they turned me down and basically stated that they would not even consider my wife. We are both healthy otherwise and live normal lives, yes we do se specialists to make sure all is well. Any suggestions, other than policies with no med q’ns?
Thanks for the note. You or your wife may qualify for a Simiplified Issue plan. There are no medical tests and depending on the plan there are 3 to 12 health questions. You can get more details at http://lsminsurance.ca/life-insurance-canada/2010/02/simplified-issue
Read more questions and answers about Life Insurance FAQ.
August 23rd, 2011
Manulife's fortunes are rising,
according to its CEO.
Despite losses in 2010, Manulife Financial CEO Donald Guloien told the Insurance & Investment Journal that the company believes the worst is over when it comes to risk management.
For example, according to their annual report, the insurer has reduced the $400 million impact that a 1% drop in interest rates would have had on earnings.
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Manulife Financial: "The Worst is Over" continued...)
August 20th, 2011
MGAs connect brokers
to insurance companies.
Managing General Agencies (MGAs) are intermediaries that connect insurance companies with brokers. More specifically, MGAs are essentially given a contract by insurance companies to manage business for a group of brokers.
Contrary to a popular misconception, MGAs do not deal directly with clients. Rather, they supply their brokers with a variety of products from different insurance carriers.
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What Is a Managing General Agency ? continued...)
August 20th, 2011
RBC expands their life insurance
options at their branch network.
Photo by Scott
As reported in the June/July issue of the Insurance and Investment Journal, RBC Insurance CEO Neil Skelding said that he wanted to intensify cross-sales in the RBC branch network to boost the company's income.
Normally, RBC's auto insurance clientele are their preferred base for cross selling, but Skelding announced that branch network life insurance customers will gain access to P&C Insurance.
"Our goal is offer the full suite of products to each client. We want to make sure that everyone's offered each of our products," he points out, going on to say that he does not want to encroach on RBC independent network of brokers.
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RBC Insurance Looks to Intensify their Cross-Selling Strategy continued...)
August 17th, 2011
This article was published in July's Insurance and Investment Journal
Embracing young clients
When Lorne Marr began his career at metropolitan Life Insurance Co. of Canada 18 years ago, he spent a full year cold calling. He approached former fellow students, friends and colleagues, and built up a clientele of young professionals. "I knew a lot of young people just starting their careers like myself," he said in a recent interview.
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Insurance and Investment Journal: Embracing Young Clients continued...)
August 14th, 2011
New question in Life Insurance FAQ:
Hello,
My wife is 25 y/o healthy ns/nd. what type of life insurance should i be looking at. also i am looking in the range of 500,000 to 1,000,000. what type of monthly premiums would i be expecting. a further question is can i buy life insurance from the u.s. even though i live in canada.
Thanks for the note. The premiums will depnd on the type of plan. Term plans start of lower and go up as you get older whereas Permanent plans start off higher and can remain level for life,
You would have to be in Canada when you complete your application.
Read more questions and answers about Life Insurance FAQ.
August 8th, 2011
New question in Life Insurance FAQ:
What does banded 20 year level term to age 100 plan type mean. Does coverage stop in 20 years or does it continue until age 100
I think you are referring to 20 year term insurance renewable to age 100. This means the premiums are level for 20 years. After the 20 years the policy is guaranteed renewable to age 100 but the renewal rates will be significantly higher after the initial 20 years.
Read more questions and answers about Life Insurance FAQ.
August 6th, 2011
New question in Life Insurance FAQ:
I had a few questions with regards to coverage on Life Insurance plan from Canada Life. if one takes the plan in Canada and later moves to an international location for e.g. Asia, would the 1)insurance coverage still be valid internationally and 2)If the person passes away in the international location, will the family still be able to claim the money out?
Thanks for the questions 1) Yes your coverage would remain inforce as long as the policy is paid to date 2) Yes the claim would still be vaid and the funds would be paid out in Canadian dollars assuming all the initial application questions were answered correctly
Read more questions and answers about Life Insurance FAQ.
July 26th, 2011
Life insurers have asked BMO
to stop selling their
Lifetime Cash Flow Product.
As first reported by The Globe and Mail, industry leading life insurance companies have banded together and written a letter to Office of the Superintendent of Financial Institutions [OSFI]. The group is requesting that the regulating organization prevent BMO Financial Group's Bank of Montreal from selling a new product called Lifetime Cash Flow.
The product gives those aged 55 and older guaranteed payments for life, but according to the Bank Act, bank branches are not allowed to sell most insurance products. These top life insurers believe that Lifetime Cash Flow is an annuity, which banks are forbidden to sell.
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Top Life Insurers Unite to Stop BMO's Lifetime Cash Flow continued...) |
one comment
July 26th, 2011
New question in Life Insurance FAQ:
Can I pay my life insurance premium by instalments? If so, how many instalments can be allowed?
All Insurance Companies allow for monthly or annual payments. Some companies alaso allow quarterly or semi-annual installments.
Read more questions and answers about Life Insurance FAQ.
July 19th, 2011
Personal Loan Creditor
means your disability insurance
is tied to a loan.
HSBC offers Personal Loan Creditor Life and Disability insurance.
The premiums on these policies are included in the monthly loan payment. If the loan is repaid sooner than expected, HSBC will refund the excess premium payment.
The personal loan life insurance pays the HSBC loan balance in full to a maximum of $100,000 should the insured pass away. The personal loan disability insurance pays up to $2,000 a month for a maximum of 60 months with a 30-day waiting period should the insured's circumstances qualify under the terms of the disability coverage.
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HSBC's Personal Loan Creditor Insurance continued...)
June 21st, 2011
New question in Life Insurance FAQ:
Will I be notified when my policy is going to expire and my rates change?
Yes the insurance company should send you a letter notifying you of an increase in rates. Insurance companies also generally notify the broker of record of any major policy changes and he / she should also notify the insured. Having said that if your policy was bought direct and / or if your broker left the business this may not happen.
Read more questions and answers about Life Insurance FAQ.
June 14th, 2011
New question in Life Insurance FAQ:
I live in Canada and have a whole life insurance policy from a US Co. (for various resons it made more sense to take a US policy). Is this policy considered an exempt policy?
We are only licensed in Canada. But the policy should carry the same provisions as if you live in the US - assuming all questions were answered accurately.
Read more questions and answers about Life Insurance FAQ.
June 12th, 2011
New question in Life Insurance FAQ:
Hi I am a CANADIAN but working and staying with my family in UAE for last 5 years. Can I buy life insurance, disability insurance and critical illness from Canada? Pls advise
Thanks for the note. You would have to be residing in Canada when applying a life, disability and Critical Illness application.
Read more questions and answers about Life Insurance FAQ.
June 10th, 2011
New question in Life Insurance FAQ:
Will insurance company pay if the insured died outside Canada? Is there any law to support insured about this case?
Yes - the policy should pay out if you die outside Canada - assuming all questions were answered accurately and suicide was not commited in the first 2 policy years.
Read more questions and answers about Life Insurance FAQ.
June 8th, 2011
New question in Life Insurance FAQ:
Will insurance company pay if the insured died outside Canada? Is there any law to support insured in this case?
The policy should pay out if the application was completed truthfully and the death was not related to suicide in the first two policy years. Unfortunately we do not have any specific case law to refer you to.
Read more questions and answers about Life Insurance FAQ.
June 7th, 2011
New question in Life Insurance FAQ:
I have a term policy, does it just expire if i do not renew or do I have to cancel it? Can it be renewed without me signing any documents?
Most Term policies renew automatically. The insurance company would require you to sign a letter to cancel the policy.
Read more questions and answers about Life Insurance FAQ.
May 8th, 2011
Critical Illness Insurance
vs. Disability Insurance:
Why You Need Both?
In a previous post, we explained why critical illness insurance is now equal in importance to life insurance when it comes to inoculating yourself against the financial hardships that come with any critical illness diagnosis.
A diagnosis of cancer, heart attack, stroke, or any other of the 20 to 25 illnesses a critical illness insurance plan typically covers, means a lump sum payment between $10,000 and $2 million for the insured, depending on the plan they purchase. The lump sum payment has no restriction — you can use the amount for anything you can think of, including your mortgage payments, experimental treatments abroad, expensive drugs, extra income, or just a once-in-a-lifetime vacation.
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Critical Illness Insurance vs. Disability Insurance: Why You Need Both continued...) |
4 comments
April 28th, 2011
Why is Critical Illness
Insurance Just as Critical
as Life Insurance?
Photo by Lindsey Lissau
The Canadian Cancer Society will tell you that one in four Canadians is expected to die from cancer and that cancer is the leading cause of premature death in this country. If that weren't enough, 40% of women and 45% of men will be diagnosed with cancer in their lifetime.
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Why Critical Illness Insurance is Just as Critical as Life Insurance continued...)
April 18th, 2011
Growing older brings you new experience and joys, but also a great deal of potential risks. Becoming dependent on long term care is one of them. We cannot secure our health, but we have insurance to help us with the financial needs associated with ageing. While life insurance mainly serves your family, critical illness and long term care insurance is supposed to cover your own expenses. Critical illness usually pays you a lump sum once you are diagnosed with a serious illness, while long term care insurance pays you a monthly sum that can help you to acquire day care or to pay for an assisted living facility.
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Are Insurers Ripping Off Long Term Care Clients? An HHS Study continued...)
April 5th, 2011
Standard Life's Perspecta
Universal Life policy
has Preferred Rates.
Photo by Kamila Gornia
(Effective January 1, 2012, Standard Life will no longer sell individual life insurance and critical illness policies).
Standard Life's Universal Life Policy, known as Perspecta, is available with a Level Cost of Insurance or an Increasing Cost of Insurance.
The policy is also available on a Single Life basis, Multi-Life basis (up to five coverages), Joint-First-To-Die basis (up to five lives), or Joint-Last-To-Die basis (paid up on the first death, or payable for as long as the second spouse lives).
The policy has a minimum face amount of $50,000 and is not available as maximum sum insurance. There are also the following three banding levels:
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Standard Life Universal Life Policy continued...)
March 30th, 2011
A mortgage on a home is one of the largest debts incurred by most Canadians, and needs to be taken very seriously. Mortgage holders may want to take measures to protect their family home in the event that payments cannot be met due to death, illness, or disability.
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Insurance coverage critical for homeowners' peace of mind continued...)
March 16th, 2011
Our hearts go out to Japan.
Photo by Jane Liu
Things just go from bad to worse in Japan, first an earthquake, then a tsunami and now the threat of a nuclear disaster. It all makes our hearts ache for survivors and victims alike.
It's no secret that earthquakes are lethal and emotionally devastating, especially in Japan, where the Sendai quake registered a 9.0 reading on the richter scale and earned its place as the fifth strongest earthquake ever recorded. The last thing you want to think about after surviving something like that is having to pay to pick up the pieces -- that's where life insurance comes in.
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Insurance that Covers Earthquakes continued...)
March 13th, 2011
Insure you and your
spouse are covered.
Photo by tldagny
Generally, spouses who want to cover both them and their partner under one policy have the option of choosing a Multi-life Policy or a Joint First-to-Die Policy.
Multi-life Policies cover a husband and wife with what are essentially two individual life insurance policies, which happen to be under one policy number.
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Term Insurance Multi-life Policies vs. A Joint First-to-Die Plan continued...) |
2 comments
February 23rd, 2011
LSM Insurance was featured in February issue of The Insurance Journal. Enjoy the article!
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The Insurance Journal: Low interest rates drive up prices continued...)
February 21st, 2011
10 essential strategies for every business owner who wants to be rich and stay rich
Profit Magazine in their March edition published a handy checklist of wealth-management moves for entrepreneurs, explaining why, when and how to make each one. LSM insurance was included!
By Julie Cazzin, February 16, 2011 in ProfitGuide.com
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Profit Magazine: The Wealthy Entrepreneur continued...)
February 15th, 2011
LSM's Andrew Burdi says
Critical Illness Insurance
has a healthy rate-of-return.
The return-of-premium feature on Critical Illness policies gives the insured the option to get all of the money if he or she remains healthy.
We recently interviewed LSM Insurance Critical Illness specialist Andrew Burdi to get his take on the main on the Return-of-Premium option offered on Critical Illness coverage.
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Critical Illness: Is Return of Premium a Good Deal? continued...)
February 1st, 2011
Which would you choose,
Captive or Independent?
Independent brokers provide insurance solutions with a variety of insurance carriers, but captive agents generally only offer life insurance solutions with one carrier.
At first glance, it may seem obvious that independent brokers provide clients with a better value, but the following takes a closer look at the pros and cons of working with an independent broker or captive agent.
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Is It Better to Work with an Independent Broker or a Captive Agent? continued...) |
26 comments
February 1st, 2011
Photo by by Rana Ossama
Soft drugs, such as marijuana and hashish do not mix well with each other, nor with traditional life insurance. Hard drugs, such as cocaine and heroin, make for an even tougher combination.
(Advisor.ca: Yes, you can insure a drug user continued...)
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2 comments
January 30th, 2011
Give as many details to
an underwriter as you can.
Photo by Christian Birmele
One of the primary benefits of dealing with a life insurance broker is that they have the ability to shop the market to find you the best possible value on an insurance product. LSM insurance takes it a step further, our advisors are specially trained to deal with hard to insure clients.
When dealing with health issues like diabetes or heart disease, it's vital that the broker let the underwriter know all relevant and pertinent information and give the underwriter the clearest possible picture of the client's health situation.
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The Life Insurance Application: Creating a Clear Picture for Underwriters continued...)
January 26th, 2011
A price increase will happen
for Empire Life policyholders.
Empire Life followed a recent announcement by Manulife, Canada Life, and Industrial Life that, effective February 14, 2011, their Universal Life cost of insurance rates will go up.
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Empire Life's Universal Life Policy Cost Increases continued...)
January 26th, 2011
The government decides
if the banks can sell insurance.
Banks have been lobbying to sell life insurance via a branch network since the mid '90s, according to The Globe and Mail. The following is a look at the pros and cons of allowing Canada's big banks to sell life insurance within their branch network:
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The Pros and Cons of Allowing Banks to Sell Insurance continued...) |
34 comments
January 25th, 2011
Medical Conditions by Julen
Health is the most valuable thing we have and any illness or other damage to one's health brings inconvenience, discomfort and suffering. Pre existing medical conditions of various kinds can come under your insurance company's magnifying glass when you are applying for a life insurance policy.
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New Section: Pre-existing Medical Conditions continued...) |
one comment
January 10th, 2011
The Insurance Council of Manitoba announced that it has received a recommendation from both the life and general insurance councils of Manitoba on the regulation of the incidental sale of insurance products.
The council recommended a regulatory framework for the incidental sale of insurance products for the province, similar to that in place in Saskatchewan. Manitoba will require any entity offering insurance -- be it a car dealership or a bank -- to be licensed. The draft of this regulation also requires the establishment of a roster of individuals who are able to sell insurance products through incidental sale.
Source: Advocis, Fall 2010, Advisor Voice Newsletter.
January 8th, 2011
Advocis supports the position
of Canadian Finance Minister
Jim Flaherty on separating
a bank's insurance business
from their banking business.
Advocis's recent submission to the Department of Finance makes it clear that Advocis supports the government's policy intent that was announced in 2009. To review, the government position was that banks should separate their insurance business from their banking business.
Advocis stressed that any changes to present restrictions not allowing banks to sell or market insurance from or through their bank branch network, without significant protective measures, could potentially harm consumers and would upset the level playing field that presently exists.
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Ottawa's Recent Review of the Bank Act continued...)
January 3rd, 2011
New question in Life Insurance FAQ:
I have a policy that is in my former married name. Also the address, phone# etc are incorrect. The representative is no longer with the company. The 20 year renewal is 2012. How do I change my information?
You would have to contact your insurance company. The address and phone number they can likely change over the phone after they verify your details. The change of name would likely require some type of document to be signed - they would supply you with the form.
Read more questions about Life Insurance FAQ.
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