Which type of Life Insurance policy is best for your child? This is a tricky but important question. Let's break the answer down into three categories.
1. Permanent Life Insurance
This is the most expensive solution for a child, but it also offers the most comprehensive coverage. Permanent Life Insurance solutions for children include the following.
(Children's Life Insurance: Which Plan is Best? continued...)
The life insurance industry has seen tremendous change over the last 24 months.
Many industry pundits are calling today's conditions the perfect storm of historically low interest rates. This negatively impacts an insurance company's profitability on permanent plans since it's combined with increased reserve requirements that have caused a very significant increase in premiums on guaranteed permanent policies.
Many carriers have increased rates between 25 per cent and 30 per cent on their universal life level-cost term 100 policies and whole Life policies, while some companies have gotten out of selling universal life plans altogether.
One plan, which remains untouched for the moment, is Industrial Alliance's Ultra 15 whole life insurance plan. This plan has two key benefits compared to traditional-non participating whole life policies:
(A Unique Whole Life Plan continued...)
Industrial Alliance offers four Cost of Insurance options with their Universal Life plans.
1. Level Cost of Insurance: Level cost of insurance is fixed and guaranteed for life. Its cost is determined by the insured's age at the time of issue. The policy's accumulation fund will basically amount to zero if the insured pays only the minimum premium. There are no surrender charges with this option. Most insurance companies do require a surrender charge on their Universal Life plans — even with a level cost of insurance plan.
2. Yearly Renewable Term (YRT) Cost of Insurance Options: This plan is guaranteed and based on the insured's age at each anniversary of the coverage. The costs of insurance for this type of plan are lower than the level cost of insurance option, but they increase each year until the insured reaches age 65. Then the cost remains level. The policy holder accumulates value in the accumulation fund, starting in the first years, even if he or she pays just the minimum premium. The surrender charges apply for seven years under this cost of insurance option. Most Universal Life Policies with a YRT cost of insurance option have surrender charges on accumulation for the first ten policy years.
(Universal Life Cost of Insurance Options continued...)Industrial Alliance offers a Group Critical Illness policy. Their plans are subdivided into three group sizes:
Coverage for employees come in basic amounts between $10,000 to $500,000, with an option for coverage between $5,000 to $500,000.
(Industrial Alliance Group Critical Illness Policy continued...)
If you're thinking about buying insurance from A.I. Excellence, these five points in their favour may push you over the edge.
1. They've been in business for over 50 years.
2. I.A. Excellence is part of the Industrial Alliance group of companies, which is among the most solid financial institutions within Canada.
3. Their life insurance lineup includes Term, Whole Life, and Guaranteed Issue Life Insurance.
(I.A. Excellence: Five Key Benefits to Dealing with Them continued...)
Industrial Alliance offers a unique term life insurance program called Pick-a-Term. It allows the insured to choose between a level and decreasing term policy.
The level term policy offers level premiums and a level death benefit, whereas their decreasing Term policy has level premiums and a decreasing death benefit. The latter plan has a lower initial premium and acts more like a creditor insurance plan, but the insured still chooses his or her beneficiary and the plan does not have to be linked to a mortgage. The Terms can range from ten years to 40 years.
(Level vs Decreasing Term: You Can do Both With Pick-a-Term continued...)
Industrial Alliance has several unique products and features within its life and living benefit insurance lineup. The following are eight key benefits that help separate Industrial Alliance from its competitors:
1. Their Joint last-to-die policies offer an option in which the surviving insured can cash out the accumulation fund tax-free on the death of his or her first spouse.
2. Their Universal Life policy, with a yearly renewable term cost of insurance option, has a decreasing surrender charge, and there are no surrender penalties after the seventh policy year. This is less than most other carriers in Canada, which have a 10-year surrender charge scale by comparison.
3. The pricing on their Universal Life lineup is very competitive — especially within the 35 to 50 age range.
4. They have preferred rates at face amounts as low as $200,000 on their permanent life insurance policies.
(Eight Reasons To Choose Industrial Alliance continued...)Industrial Alliance offers a child life and health dual policy, which provides insured people age 0 to 20 with a combination of life insurance and critical illness insurance coverage.
Here's how it works:
Assuming the insured takes a face amount of life insurance, say $200,000, half of that policy face amount is provided in the way of Critical Illness coverage. If the child were to develop a critical illness, this amount would then be deducted from the life insurance. The policy becomes paid-up when the insured turns 30 regardless of their age when they were issued the policy.
At age 30, even though the critical illness coverage ends, the insured can convert the policy to an individual critical illness plan without a medical exam, providing them with a paid-up life insurance policy and an opportunity for a new critical illness plan.
For more details on children's life insurance in Canada, please contact us at 1-866-899-4849 or visit the Whole Life Insurance Instant Quote Page.
Industrial Alliance offers two simplified issue life insurance plans without a medical exam.
The first plan, The Alternative, is available for individuals from 6 months to 80- years-old, and premiums are payable limited number of years depending on the applicant's age.
The policy has a short series of health questions, and the premiums are guaranteed never to increase. The face amount is also guaranteed. The one caveat with the plan is that if a death occurs by non-accidental means within the first two policy years, the payout is limited to a return of premium plus 5 per cent interest.
The Prospective policy is also available without a medical exam, but there is a longer series of health questions. The plan is available to applicants age 35 to 75, and premiums are payable up to age 100. The Prospective plan also provides coverage from day one.
For more details on non-medical life insurance in Canada, please contact us at 1-866-899-4849 or visit our Non-medical Life Insurance Quote Page.
Deferred term life insurance policies mean that the insured is covered for the length of the term, but should death occur within the first two policy years, the death benefit payment is limited to a return-of-premium plus interest.
The two primary deferred term policies providers in Canada are Industrial Alliance and Canada Protection Plan, underwritten by Foresters.
The following is a snapshot of the difference between the two carriers:
(Deferred Term Life Insurance Solutions in Canada continued...)
Direct line: 416.273.7811, 905.248.4849 Email: