Quest for Better Universal Options

Posted on April 2, 2008 and updated June 17, 2010 in Life Insurance Canada News 2 min read
Wawanesa Insurance

Wawanesa Life’s Universal Life plan is referred to as Quest. The basic insurance plan provides level coverage for life. There are also two guaranteed Cost of Insurance (COI) charge options available: level monthly charges for life, and an increasing COI option. The increasing option has level monthly COI charges to age 65 or for 15 years, whichever comes first; then the COI charges increase and remain level thereafter.

 

The investment options on the Quest plan are very limited compared to other carriers. AIG, for example, has over 400 investment accounts available, while Wawanesa has six investment accounts: a daily interest account, fixed interest account, Canadian equity index account, U.S. equity index account, International equity index account and a Canadian bond index account. The policy has a built-in guaranteed investment bonus of 1% of the plan’s accumulation value from years three to 24; from years 25 and beyond this bonus jumps to 1.25% of the plan’s accumulated value.

Preferred rates are not available on the Quest plan. As an example of their pricing, a 45-year-old male non-smoker who applies for $250,000 of Universal life level cost coverage will pay a minimum premium (i.e., the premium to keep the plan in force) of $188.46 a month.

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