It’s standard practice for insurance companies to determine your life insurance premiums based on several influencing factors. These variables include the following:
Your age
Gender
Whether you smoke or not
Overall health
Family history for disease and medical conditions
Unfortunately, with the current economic crisis, a new factor that could influence premiums is having more and more impact on more and more Canadians everyday–bankruptcy.
More than 117,000 Canadians filed for bankruptcy over a period of 12 months ending in January 2009, an increase of 15.8% from the previous year.
-Source: Canadian Business Blog
Below is an inside look at how various Canadian insurance providers tackle bankruptcy:
AIG
Either a letter from the trustee advising that they are aware of the insurance purchase and will allow it, or a discharge.
AXA
Will consider after a discharge.
Canada Life
$100,000 is allowed, as long as the individual doesn’t have any other insurance in force.
Desjardins
Will consider after discharge and will also verify your current income and net worth.
Empire
Will consider after discharge.
Equitable
Will consider after discharge.
Industrial Alliance
Will consider under the following conditions:
Personal life insurance only
Only after a ten year term plan, to a maximum of $100,000
Individual has a well-defined need
The plan must be accepted as standard and there will be no criticism of your lifestyle (Alcohol,driving record, criminal record).
RBC Insurance
Will consider after discharge.
Sun Life
Either a discharge, or a letter from the trustee indicating the agreement and the need for the insurance purchase.
Standard Life
Will consider after discharge.
Transamerica
Will consider a max of $100,000, if there is no other insurance currently in force.
Unity
Will consider after discharge.