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Increasing Longevity and Life Insurance

The Globe and Mailreports that a group of scientists in New York may have found the fountain of youth. Researchers at the Albert Einstein College of Medicine have discovered that by manipulating a protein in the hypothalamus in the brain of rats, they can extend the rats' lifespan by 20 years, and during that time, their memories get better, their muscles get stronger, their skin gets more supple, and their bones get denser. Good news for humans, since scientists have already slowed ...
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Life Insurance: Understanding the Underwriting Process

We recently had an applicant apply for life insurance after being declined by another insurance company due to a highly elevated blood pressure. What made this situation unique was the elevated reading was the result of the nurse using too small a cuff on the insured's arm during the reading. The insured was an active and very fit male, approximately 6'1" and 205 pounds. However, the size of his bicep actually worked against him in this instance because the standard cuff was simply too ...
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How to Save Money on Your Life Insurance Policy

According to Insureye.com, the average Canadian spends $3,100 a year on insurance premiums. The three major components of this cost are home, auto, and life insurance, with the greatest expense of $3,500 annually in Ontario. Nobody likes spending more money than they have to, so help lessen the cost of this expensive burden by reducing the cost of your life insurance policy. Life insurance is a purchase that many people put off because they don't see it as a tangible asset like a house, ...
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Are Life Insurance Commissions on Their Way Out?

The average commission generated by a life insurance policy varies depending on the type of life insurance in question. For example, the average commission on term insurance is 30 to 70%, while it is 90 to 105% on whole life insurance products. Of course, what we're talking about here are the first year commissions, commissions for subsequent years drop much lower to an average of 4% a year for term insurance and 6% annually for whole life insurance. Life insurance commissions are ...
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Life Insurance For People Over 50

People over 50 are most at risk for bankruptcy. According to a study conducted bybankruptcy trustees Hoyes, Michalos & Associates, those Canadians age 50 to 59 are the most at risk for bankruptcy.Their debts — including credit cards, personal loans and other forms not backed by assets — exceeded $84,000. However, with rising debt loads, many Canadians over 50 still require substantial life insurance. Many of these people get trapped into taking mortgage ...
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The Future of Whole Life Insurance

Life insurance companies in Canada have been under increasing pressure thanks to historically low interest rates. However, theToronto Starreports that these low interest rates may soon disappear. Low interest rates are generally bad news for banks and insurance companies, as they begin to invest your premiums and deposits inlong-term bonds and other guaranteed investment vehicles to help offset future obligations. When interest rates are lower, they squeeze the profitability of an ...
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The Life Insurance Your Insurance Company Wants You to Cancel

The phrase "lapse-supported life insurance policies" is mainly familiar to industry insiders. It refers to life insurance policies that insurance companies want you to cancel. Term 100 life insurance policies and universal life insurance policies, with guaranteed level cost of insurance, are priced with the expectation that a certain number of these policies will lapse and be cancelled. Many of the policies sold between the 1990s and 2000s are priced at very low rates. In fact, ...
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Are Insurance Companies Prejudice Against Men?

Yes, insurance companies are biased against men Considering most life insurance companies are run by males, it wouldn't make sense that these companies have a bias against men. Still, the reality is that women live longer than men. A new study out of Japan reveals that this may be because a woman's immune system ages more slowly than a man's, and insurance companies have been factoring women's longevity into their premium schedules for years. The cost difference can be significant. ...
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Life Insurance for Business Owners

Business owners can use life insurance to their advantage. There are approximately 2,550,000 businesses registered in Canada, according to Trading Economics,and approximately 1.2 million of them are small businesses (businesses with at least one salaried employee), says StartUp Canada. Small business owners have very different needs when it comes to life insurance than salaried employees. Here are just some of their specific needs: 1) They are unlikely to have group life ...
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Equitable Life Announces Changes to its Dividend Scale

Equitable Life announces changes to their dividend scale for their participating whole life policies, effective July 1, 2013. Most Equimax policies were purchased between November 2004 and February 2012. Those whole life participating policies purchased outside that period on both sides will not be affected. The change consists of reducing the current interest rate of the policies within that period by 0.36%. The dividend scale will now be 6.8% until June 30, 2014.On average, ...
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