Life Insurance Canada News:

News from 2013

20-Pay Whole Life Insurance

Whole life's 43% market share is significantly higher than universal life's 28% and, in a lot of cases, it's participating whole life's investment component that consumers are attracted to. Participating whole life gives consumers an investment opportunity to "participate" in the profits of the sponsoring insurance company. For example, Sun Life Financial reports that they have over 14 million participating policyholders, including 400,000 in the Sun Life Participating Account, which has ...
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BMO Insurance Pure Term 100 Changes

BMO Insurance is increasing their premiums, but is also adding more product choices as of Oct. 7, 2013. Those age 50 to 85 will experience a premium increase of 12% at the $100,000 to $499,999 coverage band as non-smokers and smokers in this bracket will see an increase of 11%. In the coverage band over $500,000, smokers will see a premium increase by 13%, while non-smokers will see an increase to 14%. In general, premium rates have increased for all ages, but BMO is still ranked as ...
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Participating versus Non Participating Whole Life Insurance

The world of whole life insurance is complicated, confusing and can be very intimidating for clients. Experienced advisors are invaluable when it comes to helping people determine the type of coverage best suited to their needs and goals. Universal and whole life insurance each have their advantages and disadvantages, according to Trevor Parry, president of TRP Strategic Consulting and a partner at Parry McCone, a planning and strategy firm located in Toronto, ON. Parry says, ...
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Whole Life and Critical Illness Limited-Pay Policies

Whole life insurance provides lifetime protection and fixed premiums and for some of the 17.5 million Canadians who own a collective $2.7 trillion in life insurance policies and pay nearly $13.5 in premiums, that knowledge provides peace of mind. Some whole life policies offer a limited pay feature where the insured can be covered for life, but can stop paying after a limited number of years. Limited-pay policies are more expensive than life insurance policies because the insured is only ...
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Life Insurance with a Critical Illness Advance Payment

Many life insurance companies have life insurance policies available with the critical illness rider, which is crucial given that nearly half of all Canadians will be diagnosed with cancer and 1.6 million Canadians will suffer a heart attack or stroke. However, the only real cost advantage to the insured with a combo plan is they're saving on the policy fee. The life insurance and critical illness insurance or both underwritten separately, but dealt with simultaneously, at the time of ...
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Universal life and Long-Term Care Combination Plan

Desjardins Financial recently made available a long-term care advance on its universal life foundation policies. Canada.com reports that Canada's rapidly aging population has led to a 38% increase of seniors living in nursing homes or other collective care facilities over the last ten years. This make sense given thatthe total amount of Canadians aged 65 and over went from about 3.9 million in 2001 to about 4.9 million in 2011, according to Statistics Canada. Of course, such a jump in ...
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Are Universal Life Rates on their Way Back Down?

Mortgage rates have begun to climb up in recent months. But, with The Bank of Canada keeping its interest rate the same and economists speculating that it will not go up until 2015, many wonder if this mortgage rate climb will lead to insurance companies forcing the rates on their Universal Life policies down. According to CBC, TD, RBC and BMO have all raised their mortgage rates by more than a third from less than 3% to something closer to 3.79%. They've been increasing because "banks ...
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Annuities are like Super Bonds

Money Sense Magazine did an article in their September/October 2013 issue on the benefits of life annuities. The Financial Post and Globe and Mail, both report that annuities are one of the most neglected investment products in Canada. Hardly anyone has one, even though annuities get better as you age. For example,RBC’ Insurance's online annuity calculator will tell you a 75-year-old would have to pay $124,659.82 to generate an income of $1,000 per month for life. The Money Sense ...
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Group Insurance’s Rising Health Care Costs a Concern

Rising health costs are becoming a concern for many companies. The number one priority for most employers in 2014 is controlling medical costs under their group plans, reports Benefits Canada. An annual survey on compensation trends and projections from Morneau Shepell -- a firm dedicated to helping companies improve their financial security, health and productivity -- shows that 68% of responding companies worry about their health care costs in the upcoming year. This is up from 45% ...
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Key Man Life Insurance

A Key Man or Key Person life insurance policy is a life insurance policy placed on the life of a key employee. A key man / key person policy is necessary when a employee is crucial to the business and when replacing that person would be costly and time consuming. A key person life / key man policy allows the business the funds necessary to cushion against such a loss. How much should the key man / key person be insured for is a function of their potential loss should he / she die. As ...
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