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We’ve Got The Answers: Does Life Insurance Pay Out in the Event of Suicide?

June 23rd, 2017

Today's Question: Does a life insurance policy pay out in the event of suicide?

Suicide is certainly a tragic event that sadly, affects a plethora of people. It is not something the majority of individuals take into consideration when taking out a life insurance policy, but because it is something that happens, it is important to know how it affects the policies pay out.

Most life insurance policies have a two year suicide provision and incontestability provision. This means, if an individual passes away in the first two years as a result of suicide, the policy will not pay out. The death benefit would be limited to a return of premium.

After two years, however, most insurance policies do pay out in the event of suicide. This comes with one big caveat- you have to make sure the questions you answered when applying for a policy were answered correctly. If the individual has certain mental, nervous disorders or any other health issues that were not disclosed properly, the insurance company could consider the policy null and void. That would also mean the death benefit would be limited to a return of premium.

If you are unsure of any questions or anything in your policy, make sure you get the answers in writing from the insurance company.

If you someone you know is thinking about suicide, please call the Suicide Prevention Lifeline:

1 (800) 273-8255

The Lifeline network is a available 24/7 and provides free, confidential, and emotional support to those in distress. For more information and a complete directory, please visit their website here.

Do you have more Life Insurance questions? We have more answers here!

We’ve Got The Answers: Why Have My Life Insurance Rates Tripled?

June 21st, 2017

Today's Question: My Life Insurance rates have tripled; why is that?

When initially taking out your policy, you are typically choosing between a term policy or a permanent policy. A major difference between the two types of policies centres around the premiums- how much you will be paying initially and how level your premiums stay throughout the duration of your policy. With that being said, how does this correlate to a substantial increase in rates?

There is a good chance you have a term policy. With a term policy, especially a ten year term policy, your rates go up every 10 years; usually somewhere from two to three times the initial cost. Now, of course, this can be a substantial jump. What the insurance company is doing is building a buffer into your renewal rate. That means, if you are still in good health, you can apply for a new policy at a much lower cost. Prior to applying for a new policy, however, you want to make sure you are approved for the new policy before canceling the old one.

If you are unsure about certain policies and the rates that pertain to them, it is best to speaking to a broker who is familiar with all the different types of Life Insurance policies and works with a plethora of Life Insurance companies.

Do you have more Life Insurance questions? We have more answers here!

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We’ve Got The Answers: How Does Life Insurance Work?

June 14th, 2017
Factors That Impact Your Life Insurance Premiums

Today's Question: I don't understand Life Insurance, how does it work?

Life Insurance is one of those things that you have to really educate yourself on prior to purchasing it. There are a plethora of factors that contribute to the type of policy that benefits you, so it is important to know the ins and outs of all the various policies so you can make an informed and confident decision.

What does Life Insurance do exactly? It pays out when the policy holder passes away. This can ensure that loved ones are not left with an insurmountable debt once the person passes. Life Insurance generally falls into two different categories: term and permanent.

Term Policies have a lower initial cost, but as you get older, your premiums will increase exponentially. 

Permanent Policies generally have a level cost; this means little to no increase in your premiums as you age. Permanent policies have life time protection, however, you will be paying a higher initial premium. A number of permanent policies also have a cash value built into the policy and can be paid up after a limited number of years.

It is imperative that you work with a broker who understands the various types of Life Insurance policies and who works with all the different Life Insurance companies. The broker will be able to answer any questions and concerns you have about any relative matters. This will ensure that you will get the best possible value and policy for your individual needs.

Do you have more Life Insurance questions? We have more answers here!

Stay Fit, Save Money, and Cheer On The Jays!

June 8th, 2017

Today's Question: How can I save money on my Life Insurance?

I thought I would take a slightly different slant with answering today's question. If you know me, you know I am a big Blue Jays fan. So I thought I would give you an idea on how you can save money on your Life Insurance while you are enjoying the Jay game and be a little healthier in the process.

The Rogers Centre is home to the Blue Jays, but it is also home to an abundance of greasy, fattening food. Everything from nachos to chili cheese dogs! Not only are these foods quite unhealthy, they also tend to be very pricy. One thing that I do when I go down to see The Jays is bring my own food and my own snacks. I'll usually bring a bag of almonds, a bag of macadamia nuts, or even my own jerky. Now, that isn't a jerky idea, trust me! You can make your own jerky; it is a great, healthy snack and it is very cost effective.

Doing all these things is going to allow you to stay healthier, give you a lot more energy to cheer on The Jays, and you are going to save money on your food bill. How can this quick fix help you save money on your Life Insurance? Simple! Healthier individuals generally pay less for Life Insurance. Ditching those overloaded nachos and messy hot dogs will certainly benefit you in the long run (and in more ways than one)!

Enjoy The Jays and save money with LSM!

Have more Life Insurance questions? We have more answers for you here!

Today’s Question: Can I Convert my Term Life Insurance?

June 7th, 2017

Today's Question: Can I convert my Term Life Insurance?

While Term Life Insurance in generally inexpensive at a young age, premiums go up as one ages. One may consider converting their Term Insurance do to this or any other reason, but is it possible to do so?

The ability to convert your Term Life Insurance really depends on the policy. You have to check the wording of the policy to verify if your plan is convertible, meaning you can convert without a medical from your current Term policy to a Permanent policy.

The permanent policy may be a Whole Life policy, a Universal Life Policy, or perhaps a Term to 100 type policy. These are the policies you want to research if you are looking to switch from Term Life Insurance. Each company has different conversion rules in terms of the type of plans that they are convertible to and how old you can be and still convert the coverage.

You have to make sure you really know the ins and outs of your policy and if anything is unclear, get your answer in writing.

Have more Life Insurance questions? We have more answers for you here!

We’ve Got The Answers: Why Should Millennials Consider Life Insurance?

June 1st, 2017

 Today's Question comes to us from a Millennial- why should I consider Life Insurance? 

There is a large stigma surrounding millennials and finances, so it is safe to assume that with the amount of financial responsibilities they face, Life Insurance may not have been in the picture. Now, I am not a millennial, but I can take a stab at the question and provide an answer based on what I have seen from a plethora of clientele.

Life Insurance is going to pay off if the person passes away. This is less important to someone without dependents, but it is a still a good value for young individuals. A lot of young adults do have dependents and some form of debt, whether it be from tuition or various other forms of loans. Life Insurance can cover that existing debt and ensure their dependents are taken care of if you pass away.
Another advantage of taking out a Life Insurance policy at a young age is the cost, which is typically a lot lower the younger you are. This is especially useful if you are looking into a Permanent Life Insurance Policy where the cost is going to remain level for live and provide you with life time protection.
What millennials really want to look at are their priorities and finances; where and how does Life Insurance fit in with ones overall budget and financial plan. It is best to work with a broker who works with all the different companies and has extensive knowledge on the ins and outs of how Life Insurance works. This will allow an individual to discover and research various policies in order to find one that best suits their financial and situational needs.
More Life Insurance Questions? We have more answers here!

Lupus Ontario and LSM Insurance Pair Up for the 4th Annual Lupus Bowl

May 26th, 2017

lupus bowl poster 2017

Lupus Ontario and LSM Insurance team up together for the 4th Annual Lupus Bowl on Friday, June 16th 2017. The event starts at 7:00 p.m. with the venue at Bowlerama on 5837 Yonge Street in North York, Ontario.

This year, Lupus Bowl offers fabulous prizes for both individual and team based accomplishments. An individual prize is available to anyone who might be able to bowl three strikes in a row aka a Turkey. A prize will also be granted to the person who is able to bowl the top single-game score of the night. As for team prizes, they will be awarded to the team that bowls the highest score. There will also be a prize for the team who bowls the lowest score. However, the competition will be fierce since the ultimate prize is on the line. Teams will be competing for none other than the coveted LSM/Lupus Cup. We also have surprise awards to keep things interesting throughout the night. There will also be door and raffle prizes so everyone has a chance to win something.

Players who want entry into the Lupus Bowl must make a minimum donation of $35 per person in order to play yet. There is also a $2 shoe rental charge if you don't have your own bowling shoes. Players may also feel free to donate more. Donations are accepted through Lupus Ontario's website here or in-person at the event with a personal cheque. An official donation receipt will be available for anyone making a contribution towards Lupus Ontario. We will also match the first $500 raised for this event. All proceeds from the Lupus Bowl will go to Lupus Ontario. Come out to the Lupus Bowl to enjoy the fun atmosphere and a night of bowling for a good cause.

Learn more about Lupus here

What The Financial Experts Own – Shawn Bellefeuille

May 25th, 2017
Shawn Bellefeuille life insurance expert

Shawn Bellefeuille

Certified Financial Planner, DFSIN Ottawa Financial Centre 


1. What Type of Life Insurance do you own?

I own some permanent insurance for final expenses and money to help my estate pay taxes upon my death as well as a large term insurance policy as I still have you children who depend on my income.

2. What factors did you consider when determining the coverage amount?

You need to do a proper needs analysis and make sure that you look at current and potential future needs. I believe that if something happens to your client you need to show up with the right amount on the cheque.

3. Do you believe in Life Insurance for Children?

I believe that insurance on children makes sense as long as the parents have the proper amount of insurance in place first. It is good to protect their insurability down the road should their health not be good enough when they need more insurance.

4. What is The Biggest Life Insurance mistake people make?

No buying enough or reviewing on a regular basis as their needs change.

5. Outside of Life Insurance what other types of individual insurance are often over looked?

I think that everyone should take a look at Critical Illness Insurance. It gives you money when something bad happens to you so you can worry about getting better rather than where you will find the money to pay bills. It relieves financial stress during a very stressful time.

Shawn is the President of Bellefeuille Financial Corporation and President of Gama Canada (2015-2017). He has been helping families with their insurance and investment needs since 2002.

<Back to Life Insurance – What The Experts Own

Life Insurance Questions- Is Life Insurance a Scam?

May 24th, 2017
Is Life Insurance a Scam?

Today's Question: Is Life Insurance a Scam?
I have actually been asked this question quite a few times over the years and it has a bit of a negative connotation to it. To those who have never really researched Life Insurance, it is easy to see why they may have some reservations. Life Insurance is something that an individual must really learn about in order to obtain knowledge of all its benefits. Let's take a look at it and dive into the details.


Life Insurance pays off if the insured person passes away while the policy contract is in force. However, there are certain pre-requisites- the Insurance Company is assuming that the information that they are being given is accurate. If the insured does not truthfully disclose information on the application or misstates information, the Insurance Company cannot accurately assess the risk. This can result in a claim being contested or denied. Ensuring that you provide truthful, complete, and accurate information will provide better results for the insured as well as those who may rely on the coverage.

My suggestion is, if you are not sure about a question on the application or related forms, make sure you get clarification and that you get the clarification in writing. It is very important that you disclose all the information as clearly and precisely as possible.

In short, Life Insurance poses a plethora of benefits and once it is truly understood, the benefits become obvious. It is therefore to your benefit to consult with an independent broker who is familiar with the various available options and solutions that will best suit your individual needs. They will provide you with the answers you need to empower you to get the best possible value and knowledge so you can make informed decisions in your best interests.

Still have questions? We have plenty of answers here!

Thanks to Ami Maishlish for his help with this post. Ami Maishlish is the President and CEO of CompuOffice Software Inc., a specialty and custom software firm serving the financial sector in Canada and abroad. CompuOffice Software Inc.'s products include LifeGuide Professional Software, which was designed by Ami in 1989, based on an earlier version that he created a decade earlier. LifeGuide is the leading, and most widely used, multiple-insurer support software in Canada.

Ami was also one of the first Experts interviewed in our Life Insurance Expert series, find out more about him here!

We’ve Got The Answers- What Makes Life Insurance such a Unique Product?

May 17th, 2017
What Makes Life Insurance such a Unique Product

Today's Question: What makes Life Insurance such a unique product?
One of the really great things about Life Insurance is that it allows you to buy future dollars for pennies on the dollar. This is a concept that was brought forth from the great, Ben Feldman. He helped people understand that it is possible to get future money (tax free dollars) down the road, for pennies on the dollar.

There are a lot of different policies you can set this up with. For example, you can set it up with a Term To 100 type policy or a Whole Life Policy, where your payout is guaranteed down the road and you also have guaranteed cost of insurance. You know somebody is going to get that money down the road, but they are not going to pay a dollar for a dollar, instead, they are only going to be paying pennies for the dollar.

It is very important to speak with a broker who is familiar with all the different policies and also works with all the different companies so you can make sure you and your family get the best possible value.

More Life Insurance Questions? We have more answers here!

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