Life Insurance Canada News:

News from 2009

Primerica Term Life Sales Decrease in 2009

December 30th, 2009
dollar sign by Colin
dollar sign by Colin

As reported in the December 2009 issue of the Insurance Journal, sales of Primerica term life products have been decreasing.

The company's recent prospectus filed on November 5, 2009 states that Primerica sold more than 115,000 policies in the six months ending June 30, 2009, compared with more than 121,000 policies in the first six months of 2008.

The prospectus also indicates a slight decline in the average size of new policies along, with a slightly higher lapse rate. (The rate of which people cancel their policies)

You can get a free term life insurance quote at our Instant Term Insurance Quote Page, or feel free to call us at 1-866-899-4840.
 

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Top 10 Group Insurance Companies in Canada

December 23rd, 2009
Insurance Journal Nov  Dec

As stated in the November/December issue of the Insurance Journal, the Fraser Group recently ran down the list of the Top 10 Group Insurance Companies in Canada. The top 10 companies combined comprise 95% of the market.

  1. Great West Life 22.3%*
  2. Sun Life 21.6%.
  3. Manulife 21%.
  4. BlueCross 10.5%.
  5. Desjardin 5.9%.
  6. SSQ Financial 3.9%.
  7. Green Shield 3.6%.
  8. Industrial Alliance Group 2.9%.
  9. Standard Life 2.2%.
  10. Co-Operators 1.2%.


* Great West Life results include Canada Life and London Life.

For a free, online group insurance quote, please visit our Group Benefits Quote Page, or contact us at 1-866-899-4849

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Group Insurance Premiums on the Rise

December 23rd, 2009
Insurance Journal Nov  Dec
 

As reported in the November/December issue of the Insurance Journal, group insurance premiums are increasing in Canada.

Insurers had profits of 29.1 million from their Canadian group insurance activities in 2008, according to the Frazier Group's Group Universe Report 2008. Insurers also saw an increase of 7% in revenue coming from group insurance activities over 2007.

The 2009 third quarter results, released by insurers very recently, showed a sustained level of sales in the group sector.

For more details, please feel free to contact us at 1-866-899-4849. You can also get a group insurance quote online by visiting our Group Insurance Quote Page.

Life Insurance: Underwriting and Bariatric Surgery

December 21st, 2009
You can still get life insurance once you have bariatric surgery.
You can still get life insurance
once you have bariatric surgery.
photo by Colin Rose

We all know that North America is the heaviest continent in the world and for those who've tried dieting and exercise countless times with no success, often the only option they see for themselves is Bariatric Surgery. Even celebrities have gone under the knife, people like Carnie Wilson, Randy Jackson and Sharon Osbourne -- just to name a few.

However, even with such an invasive surgical procedure, you can still get life insurance. It's very important to be aware of the following underwriting guidelines because insurance companies will be basing their verdict on the factors below:

(Life Insurance: Underwriting and Bariatric Surgery continued...)

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Five Long-Term Care Insurance Myths

December 19th, 2009
man
Man by Michelle Tribe

While the number of long-term care policies being sold in Canada is rising, the number of Canadians who are properly insured is still extremely low. In some instances, its due to misunderstanding and myth. The following are five myths surrounding Long Term Care Insurance:

"My Family Will Take Care of Me"

This would have been more likely years ago, when adult children tended to live closer to their parents and women stayed at home. In today's society, children may live across the country or, further still, across continents. Obviously, many women are now active in the workforce, with less time to fulfill the traditional caregiver role. Even if this is a feasible solution, many seniors prefer to have control over their care and don't want to burden their families.

"Provincial Health Care Plans Will Cover My Bills"

Provincial health have experienced major cutbacks in recent years. The last federal budget was focused on tax cuts, not health care, forcing provinces like BC to cut over 6,000 surgeries. Worse, the trend seems to be on rise.

"Long-term Care Insurance is too expensive"

Long-term Care Insurance premiums are lower, when younger you are. So, it makes sense to purchase coverage when you are younger and when premiums are more affordable. The monthly premium if you purchase coverage at age 45 can be as low as $50 a month. Whereas, the same plan for a 55-year-old would be over a $100 a month and for a 65-year-old would be over $200 a month.

"Long-term Care Is to Hard to Qualify For"

Underwriting requirements for long-term Care Insurance are very different from life or Disability Insurance. In most instances, coverage can be obtained without having to complete medical tests.

"I'm Too Young"

A lot of us think that only senior citizens need to worry about Long-term Care, so we put off preparing for the possibility. The fact is accidents or illnesses can strike at any age.


People of all ages can develop serious conditions that require them to need assistance with routine daily activities for an extended period of time and the cost of care can be significant. Long-term Care Insurance can help cover the cost of the care associated with these illnesses and injuries while protecting your assets.


If you have any questions please do hesitate to call us at 1.866.899.4849 ,or visit our Long-term Care Quote Page.

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BMO Guaranteed Life Plus Pricing

December 16th, 2009
 
Cigars by John Verive
Smokers and non-smokers receive
different benefits from
BMO's Guaranteed Life Plus.
Photo by John Verive

BMO Insurance's Guaranteed Life Plus is only available through BMO's call centre and not through its broker network. The plus with the plan is there are no health questions, but the plan does not pack a lot of insurance for your premiums dollar.

The death benefit on non-accidental deaths is also limited to a return-of-premium in the first two policy years.

The plan is available in five pricing increments and the table below lists the price at age groups spanning 40 to 75 for both males and females. If the death is accidental, the insured receives five times their coverage. Although smokers and non-smokers pay the same rates, the benefit a smoker receives is significantly lower than that received by a non-smoker. You can see how the benefits break down in our two charts for men and women below:

Monthly Premiums (basic benefit: smoker and non-smoker - men
your age $20 $30 $75 $100 $120
40-41 $2,900 $6,150 $4,800 $10,100 $13,500 $27,750 $18,050 $36,700 $21,850 $44,400
42-43 $2,650 $5,950 $4,450 $9,700 $12,500 $26,500 $16,700 $35,100 $20,200 $42,500
44-45 $2,450 $5,650 $4,100 $9,200 $11,500 $25,150 $15,400 $33,350 $18,650 $40,400
46-47 $2,250 $5,350 $3,750 $8,700 $10,550 $23,750 $14,150 $31,450 $17,150 $38,150
48-49 $2,050 $5,000 $3,400 $8,150 $9,600 $22,150 $12,950 $29,400 $15,700 $35,700
50-51 $1,900 $4,750 $3,200 $7,650 $8,950 $20,850 $12,150 $27,800 $14,700 $33,600
52-53 $1,750 $4,350 $2,900 $7,050 $8,100 $19,150 $11,000 $25,500 $13,300 $30,800
54-55 $1,550 $3,950 $2,600 $6,350 $7,250 $17,300 $9,800 $23,150 $11,900 $28,000
56-57 $1,400 $3,600 $2,350 $5,800 $6,650 $15,700 $9,000 $21,000 $10,900 $25,400
58-59 $1,350 $3,250 $2,200 $5,250 $6,200 $14,250 $8,400 $19,150 $10,150 $23,100
60-61 $1,300 $2,950 $2,150 $4,850 $5,950 $13,050 $8,050 $17,500 $9,700 $21,150
62-63 $1,300 $2,750 $2,100 $4,450 $5,750 $12,000 $7,850 $16,100 $9,500 $19,450
64-65 $1,100 $2,450 $1,900 $3,950 $5,200 $10,650 $7,100 $14,400 $8,550 $17,350
66-67 $950 $2,100 $1,600 $3,450 $4,500 $9,250 $6,100 $12,500 $7,400 $15,100
68-69 $850 $1,800 $1,400 $2,950 $3,950 $8,050 $5,400 $10,850 $6,500 $13,150
70-71 $750 $1,600 $1,250 $2,600 $3,550 $7,100 $4,850 $9,550 $5,850 $11,550
72-73 $650 $1,400 $1,150 $2,300 $3,200 $6,250 $4,400 $8,450 $5,300 $10,150
74-75 $500 $1,150 $900 $1,900 $2,550 $5,200 $3,500 $7,050 $4,250 $8,500

    

Monthly Premiums (basic and accident benefits - women
your age $20 $30 $75 $100 $120
40-41 $6,350 $11,600 $10,250 $18,600 $28,250 $50,000 $37,600     - $45,400      -
42-43 $5,900 $10,750 $9,500 $17,250 $26,200 $46,550 $34,900     - $42,100      -
44-45 $5,450 $9,950 $8,800 $15,950 $24,300 $42,950 $32,300     - $39,050      -
46-47 $5,050 $9,150 $8,150 $14,650 $22,450 $39,400 $29,900 $50,000 $36,100      -
48-49 $4,700 $8,350 $7,550 $13,300 $20,700 $35,800 $27,600 $47,150 $33,300      -
50-51 $4,400 $7,650 $7,050 $12,150 $19,350 $32,600 $25,850 $43,200 $31,200 $50,000
52-53 $4,000 $6,850 $6,500 $10,950 $17,750 $29,400 $23,650 $38,850 $28,550 $46,850
54-55 $3,700 $6,150 $5,950 $9,850 $16,300 $26,450 $21,750 $34,950 $26,250 $42,150
56-57 $3,450 $5,550 $5,550 $8,900 $15,050 $23,600 $20,150 $31,450 $24,300 $37,800
58-59 $3,200 $4,950 $5,150 $8,000 $14,000 $20.950 $18,700 $28,150 $22,550 $33,550
60-61 $2,950 $4,450 $4,750 $7,150 $12,850 $18,550 $17,150 $25,200 $20,750 $29,800
62-63 $2,750 $4,000 $4,400 $6,300 $11,900 $16,100 $15,850 $21,500 $19,150 $25,850
64-65 $2,500 $3,550 $3,950 $5,600 $10,700 $14,200 $14,300 $19,000 $17,200 $22,800
66-67 $2,200 $3,100 $3,550 $4,850 $9,250 $12,300 $12,500 $16,400 $15,000 $19,700
68-69 $1,950 $2,650 $3,150 $4,200 $8,250 $10,700 $11,000 $14,350 $13,200 $17,200
70-71 $1,750 $2,300 $2,800 $3,700 $7,300 $9,400 $9,700 $12,550 $11,700 $15,050
72-73 $1,550 $2,000 $2,500 $3,200 $6,400 $8,050 $8,500 $10,800 $10,200 $12,950
74-75 $1,300 $1,650 $2,150 $2,700 $5,650 $7,050 $7,550 $9,450 $9,100 $11,350

For more details on non-medical life insurance, please contact us at 1-866-899-4849, or vist our Non-medical Life Insurance Quote Page.

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Buyer Beware: Online Life Insurance Websites and Preferred Rates

December 16th, 2009
Life insurance by Jimmy McDonald
You're bound to be frustrated
by online insurance providers.
Photo by Jimmy McDonald

Numerous websites offer so-called preferred rates when quoting online life insurance rates. Many of these websites use preferred rates as their default premium in their instant quote calculators, even though less than 30% of all applicants qualify for these preferred rates.

Numerous variables can disqualify individuals from online carriers' preferred rates. These variables include:

1. Prior tobacco use

2. Height and weight

3. Cholesterol

4. Blood pressure

5. Driving record

6. Family history

7. Past substance abuse

8. Hazardous sports and occupations

9. Travel

The difference in premium between preferred and standard rates can be significant. Case and point, a 40-year-old, male non-smoker would pay $62.55 a month for 500,000 of term 20 coverage under standard rates with Equitable life. Whereas, the preferred rate would be 44.55 a month.

When online providers give the preferred rate up front, they hope to lure customers into the application process. Another problem with the online carriers is that they do not have a clear understanding of which carriers best meet risk profiles, (i.e. some insurance carriers specialize in working with diabetics or people with blood pressure or cholesterol histories.)

It's the job of the insurance broker, to best match the insured with the most appropriate plan and insurance carriers for a client's own indvidual needs and  medical situation.

For more details, please visit our Term Life Instant Quote Calculator, or contact us at 1866-899-4849.

December Financial System Review

December 16th, 2009
Silver Cascade by Garry Knight
photo by Garry Knight

This significant report from the Bank of Canada is released biannually, and covers the most important aspects of the domestic financial markets. The main focus is to discuss the possible risks which may affect the Canadian financial system.

In the last three issues (December 2008, June 2009, and the latest, December 2009) the bank has identified five key sources of risk, and has followed their development. From the current report, it is apparent that the overall risk has declined since June. However, potential threats have not disappeared.

(December Financial System Review continued...)

Canadian Tire Life Insurance: Conveinence Comes at a Price

December 15th, 2009
Canadian Tire is better for home hardware than life insurance.
Canadian Tire is better for home
hardware than life insurance.
photo by Shirley Buxton

Canadian Tire started offering term life insurance, underwritten by Canada Life, in 2005. In March of 2009, they tweaked the details of the plan and began rolling out a new marketing campaign, complete with TV commercials.

On the plus side the plan is available with no medical tests but does have a series of health questions. The convenience of not having to meet with a nurse comes at a steep price.

Canadian Tire's term life plan is nearly double the cost of competing Term plans. As illustrated below, Canadian Tire's Term 5 Life Insurance Plan is twice as much as the competing term 10 plans. With competitors, you can get double the term for half the price.

Moreover, Canadian Tire premiums are only level for five years and the plan is not convertible without a medical to a permanent plan. The following is a list of rates showing how Canadian Tire Term Life Insurance stacks up with the competition:

(Canadian Tire Life Insurance: Conveinence Comes at a Price continued...)

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TD Life Insurance Leaves Something to be Desired

December 15th, 2009
Find out TD Term Life plans fall short before it’s too late.
Find out TD Term Life plans
fall short before it’s too late.
photo by Craig Cloutier

TD Term life insurance has been offering life insurance for approximately 10 years Now their offering plans through their TD Life Insurance division and Transamerica Life.

The TD life plans are available on a Term 10 basis. The Transamerica policies are the same policies offered by Transamerica independent brokers, but TD agents are unfortunately limited to only selling Transamerica’s Term 10 and Term 20 policies. The application process breaks down like this:

(TD Life Insurance Leaves Something to be Desired continued...)

Head Office: 2900 John Street Suite #302 Markham, L3R 5G3
Office 1-866-899-4849, 905.248.4849 Fax 905.300.4848


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