Life Insurance Canada News:

News from 2012

marijuana-smoker-life-insurance-rates

Test Your Eligibility for Life Insurance: If You Have a Serious Illness, We Have Good News!

You may still qualify for life insurance with a history of drug use If you have ever been diagnosed with a serious illness (such as heart attack, stroke, diabetes, or cancer) and been told you're not and you never will be eligible for life insurance, we're happy to report that nothing could be further from the truth. On the top-third of the LSM home page, right above our CityTV interview, sits a drop-down menu titled "Find out your eligibility for life insurance if you have a serious ...
Continue reading

Transamerica life Canada Adds a New Critical Illness Rider

As reported in the September 2012 issue of The Insurance and Investment Journal, Transamerica Life Canadahas introduced a critical illness rider that can be added to all of its term and universal life insurance policies effective August 27, 2012. However, Transamerica is not offering the product as a standalone option — only as a rider. The rationale behind this choice was to keep the cost of the product down. By adding coverage on a rider-only basis, they save their policyholders an ...
Continue reading

A Unique Whole Life Plan

The life insurance industry has seen tremendous change over the last 5 years. Many industry pundits are calling today's conditions the perfect storm of historically low interest rates. This negatively impacts an insurance company's profitability on permanent plans since it's combined with increased reserve requirements that have caused a very significant increase in premiums on guaranteed permanent policies. Many carriers have increased rates between 25 per cent and 30 per cent on their ...
Continue reading

Universal Life Rates on the Rise Again

As reported in the September 2012 issue of the Insurance and Investment Journal, life insurance companies have raised the rates on their universal life level cost plans for the third time in the last two years. The article, which interviews many key executives, emphasizes that low long-term interest rates are diminishing the profitability of these products, which previously guaranteed cost-of-insurance charges for the life of the applicant. Each time long-term interest rates drop, the ...
Continue reading

SSQ Life Insurance Company Lowers Term 20 and Loan Term 20 Rates

On January 1, 2012, SSQ Life Insurance Company completed the acquisition of AXA Life Insurance Inc. The acquisition helped strengthen SSQ's position in the insurance industry — especially in Canada. The company further entrenched its position in the highly competitive Term 20 marketplace with a decrease in rates to its term 20 life insurance and term 20 loan insurance rates on September 12, 2012. Term 20 life insurance policies are a very popular vehicle for income replacement or debt ...
Continue reading

The Top Five Shady Life Insurance Plans Being Sold

1. Mortgage Insurance:Nearly everyone who buys a home is offered the chance to buy mortgage insurance along with the purchase, but no one considers insurance when they've just bought a home. Instead, they likely think about their mortgage and their mortgage payment details. What they may not realize is that they could be costing themselves thousands of dollars. Mortgage insurance is supposed to cover your mortgage in the event of your death, but premiums can typically cost 30 per cent ...
Continue reading

New question in Life Insurance FAQ

New question in Life Insurance FAQ:My husband quit smoking "cigarettes" 7 years ago. He occasionally chews nicotine gum. When applying for insurance would he only be considered at "smokers rates" ? Thank youThis depends on the company. Most life insurance companies would qualify him as a smoker but some companies may not mention Nicorette or nicotine substitutes in terms of their non-smoking declaration. It's important to check the application wording very carefully. Read more ...
Continue reading

Are Convertible Term Life Policies On their Way Out of the Life Insurance Industry?

Predicting the future of convertible term life policies. The life insurance industry has gone through a major transformation in the last 12 months. Historically low interest rates and changes in accounting provisions governing insurance companies have put tremendous financial pressure on life insurance companies. As a result, almost all life insurance companies have significantly raised prices on their permanent life insurance policies, such as term 100 life insurance, universal life ...
Continue reading

Permanent Critical Illness Insurance Rates are on the Rise

Critical Illness insurance coverage pays out a lump sum if the insured is diagnosed with a critical illness, and Canada remains one of the few countries in the world to offer critical illness permanent plans with guaranteed rates. The number of critical illnesses covered can range from three to 25. However, permanent critical illness policies have been heavily affected by historically low long-term interest rates. As a result, many insurers have removed these products from their lineup ...
Continue reading

Canadian Critical Illness Comparison Chart

The Critical Illness marketplace in Canada is heating up. Since the first Canadian Critical Illness policy was sold in the mid-'90s, annualized new premium sales have steadily increased. Premium sales rose by 6 per cent to $103.8 million in 2011. The insurance industry sold 7 per cent more policies than it did in 2010 during this period, and insurers sold 100,775 individual Critical Illness policies in Canada last year, so it's clear that insurance companies are taking notice of the ...
Continue reading