Life Insurance Canada News:

News from 2010

Line of Credit Insurance: Is it Worth it?

According toThe Canadian Encyclopedia, The average Canadian owes $340,000 spread over a mortgage, three lines of credit and two credit cards.However, Line of Credit insurance, like mortgage insurance, generally does not provide the consumer with a very good value. The coverage declines as your line of credit declines. Additionally, it offers the following disadvantages when compared with term life insurance: 1. The coverage is not portable. If you move your line of credit from ...
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Mortgage Insurance in Canada

Mortgage Life Insurance in Canada is often misunderstood. Most mortgage insurance policiesare sold through lending institutions and the insured often pays little attention to the details as he or she is focusing on their mortgage. Mortgage Insurance through a lending institution is essentially, decreasing Term Life insurance. In other words, the value of the life insurance decreases as the insured's mortgages decreases, but in most instances, the rates go up based ...
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Buying Life Insurance in Canada: Five Big Mistakes to Avoid

Whenbuying life insurance in Canada, avoiding the following five mistakes can save you and your family thousands of dollars. We compiled for you an overview of five major mistakes to avoid when getting a life insurance policy in Canada. 1.Buying direct rather than through an independent broker. Buying life insurance direct seems like it would be very good value, but companies such asCanadianTire,HSBC, and some otherinsurance carriersgenerally offer higher-priced ...
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Mortgage Insurance Keeps Owners in their Homes

Mortgage insurance keeps you in your house Mortgage insurance has revolutionized the housing industry, reports the Montreal Gazette. First introduced 35 years ago, mortgage insurance means that people can own their home for as little as a 5% cash down payment, thanks to a relatively low premium tacked on to the initial value of the loan. "We just would not see the strong housing market, new and re-sale alike, that we have enjoyed for the past decade without mortgage insurance," Ajay ...
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Association Group Insurance Policies

Association group insurance plan covers small and medium businesses across Canada. Their clients include one-person firms, home-based businesses and small to mid size firms. The plan can offer several unique value-added features including: 1. Pooled benefits, which stabilize your firm's rates of renewal. 2. Coverage is generally guaranteed renewable. 3. Most plans provide a toll free customer service center toll-free. This may be a disadvantage depending on your experience with call ...
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Life Expectancy Table

Have you ever wanted to know how long you have left to live, or where your life expectancy lies? Insurance carriers certainly do. All of them across Canada use tables such as the one below to determine how much you pay in premiums for your life insurance plan. Risk factors such as obesity, disability and smoking decrease your life expectancy in the eyes of all carriers to varying degrees, which will therefore raise your premiums. (more…)
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Group Insurance: What is a Rate Guarantee?

Rate guarantees means rates are frozen for a certain period of time. Group insurance carriers offer a rate guarantee within their contracts. This is the period of time that, the insurance company guarantees to the employer, there will not be an increase in the final premiums determined during the underwriting process. The total cost to the employer will increase if there are new employees added to the group plan, but not by more than the rates given to the employer at the time of ...
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Life Insurance versus Disability Insurance in Canada

Life insurance and disability insurance cover two distinctly different needs. Life insurance protects the insured family in the event of death, whereas disability insurance protects the insured in the event he or she is no longer able to work due to an injury or illness. The need for disability insurance is often underestimated and, in many ways, exceeds the need for life insurance. The risk of becoming disabled prior to age 65 is considerably higher than the risk of dying. An average ...
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Insurance: One of Canada’s Last Remaining Tax Havens

Life Insurance policies in Canada offer Canadians a great opportunity to defer and offset future taxes. Permanent life insurance policies offer the following tax benefits: 1. The cash-value within a permanent life insurance policy can grow on a tax-sheltered basis, up to certain maximum amounts as set by the government. 2. When cash-values are used to offset future life insurance premiums, the premiums are being paid with pre-tax dollars rather than after-tax dollars. ...
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BMO Insurance – Affordable Critical Illness Protection

Effective April 8, 2010, BMO Insurance has reduced the rates on its Critical Illness Term 10 and Term 20 policies. BMO Insurance's living benefit term 10 and 20 plans – are among the most affordable rates in the industry and cover 25 conditions, including loss of independence. Loss of independence is automatically built into the plan. Meanwhile, many companies have this feature only available as a rider and charge an extra fee. Additionally, BMO’s Critical Illness Term 10 and Term 20 ...
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