Life Insurance for Pharmacists

Pharmacists should see
their insurance options

According to the Canadian Government, there are 33,288 pharmacists working across the country making an average salary of $41.10 an hour. Though they may already have life insurance coverage through their employer’s group benefit plan or as a member of a professional organization, there are a myriad of options that may be better suited to their needs.

Life insurance can be broken down into two categories, Term insurance and Permanent Insurance.

Term insurance starts off lower in costs and increases as the insured gets older. The length of the term can vary. As a rule of thumb, the longer the term, the higher the initial premium, but the shorter the term, the lower the initial premium.

Most term life policies in Canada are renewable and convertible, which means the insured can renew the coverage without a medical exam, albeit at a much higher premium. They can also convert the coverage to a permanent plan without a medical exam. Term rates can vary significantly from company to company, and many companies offer preferred rates, which can lower the insured’s premium by as much as 30 per cent, but only if the insured happens to be in very good health and has an excellent family health history.

Permanent Life Insurance can be subdivided into three types of plans:

Term-to-100 insurance provides level premiums and lifetime protection. Term 100 policies generally do not build cash value. However, some companies offer reduced paid-up coverage if the insured wants to stop paying. Most Term 100 plans have increased in cost in recent years due to historically low interest rates, and many carriers in Canada no longer offer Term 100 coverage

Universal Life coverage offers lifetime protection with flexible premiums, and most Universal life policies come with an increasing cost of insurance — for example, where the cost of insurance starts off lower and increases as the insured gets older, or a level cost-of-insurance option, which provides a fixed cost-of-insurance for the life of the policy. Similar to Term 100 coverage, most Universal Life, level cost-of-insurance policies in Canada have increased in price as a result of low interest rates.

Whole Life policies can be broken down into non-participating and participating policies. The former offer lifetime protection, guaranteed premiums, and a guaranteed cash value. However, these policies do not produce a dividend. The latter (participating policies) offer fixed premiums, lifetime protection, and guaranteed cash value, but they also produce an annual dividend, which allows the insured to participate in the profits of their life insurance carrier.

For more details on which life insurance policy is best for you, please contact us at 1-866-899-4849 or visit our Term Life, Whole Life, or Universal Life quote pages.

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