Life Insurance FAQ:

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New question in Life Insurance FAQ

New question in Life Insurance FAQ: How do I know my Life insurance policy will pay out? Life insurance policies generally have a two-year contestability period, which means the insurance company can contest the claim for the first two policy years if there is misrepresentation on the application. The insurance company can also contest claims for the life of the policy in the event of fraud. LSM Insurance is very active all throughout the claims paying process. We walk the claimant ...
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New question in Life Insurance FAQ

New question in Life Insurance FAQ: Can I get Life insurance if I’m sick? Yes, life insurance is available to people who are sick. Depending on the type of illness, the insured may still qualify for traditional life insurance plans that require medical tests and health questions. Otherwise, non-medical life insurance plans fall in the two categories mentioned above: Simplified Issue insurance (where there are no medical tests and three to 12 health questions) or Guaranteed Issue ...
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New question in Life Insurance FAQ

New question in Life Insurance FAQ: Can I get Life insurance without a medical exam? Yes, there are an increasing number of non-medical life insurance providers in Canada. The two types of non-medical life insurance policies are, Simplified Issue coverage and Guaranteed Issue coverage. Read more questions about Life Insurance FAQ.
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New question in Life Insurance FAQ

New question in Life Insurance FAQ: How our insurance brokers paid? Life insurance brokers are generally paid a commission by the insurance company for each policy sold. This cost is built into the premium, so the consumer does not pay any type of surcharge. In fact, buying life insurance via direct distribution channels (where a commission is not generated) is often more expensive because the fixed cost of employees salaries and necessary infrastructure is higher than the distribution ...
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New question in Life Insurance FAQ

New question in Life Insurance FAQ: How much Life insurance do I need? We have an online calculator that makes this process easy right here: https://lsminsurance.ca/calculators/canada/needs-analysis.html. The formula breaks down as, Existing Assets, (including all the life insurance that’s currently in-force) minus Current Liabilities and Income Replacement Needs, equals The Amount of Insurance Needed for Adequate Coverage. Read more questions about Life Insurance FAQ.
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New question in Life Insurance FAQ

New question in Life Insurance FAQ: Is there a time limit for the beneficiary for claiming an amount after the an insured dies? So long as the information on the initial application is correct there should be no time limit on collecting the claim. The insurance company will need a death certificate and the beneficiary(s) will need to sign a claimants statement. Read more questions about Life Insurance FAQ.
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New question in Life Insurance FAQ

New question in Life Insurance FAQ: Why should I buy Life insurance? Life insurance can be used for a number of reasons. Below is a sampling of six of these, but there are many more: Income Replacement Paying off a mortgage or a line of credit Final Expenses Emergency Fund Money used to fund your child’s education Estate preservation and creation. (Life insurance is seen by many as an unselfish act because the money is not used for the insured, just ...
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New question in Life Insurance FAQ

New question in Life Insurance FAQ: What is Term insurance? Term insurance policies cover the insured for a stated term. The most common type of term policies are Term 10 and Term 20 policies. For example, on these plans the premiums are fixed for 10 years or 20 years and they rise substantially as the insured ages. Most Term policies are renewable and convertible, meaning the coverage can be renewed and/or converted to a permanent plan without a medical. Read more questions about ...
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What Should I Do If My Application Is Declined?

When someone applies for life insurance in Canada, only one of three things can happen: 1. The policy is approved. This happens to about 80% of all applicants, although the number is much higher among younger applicants, since younger people are generally healthier. 2. The policy is issued, but on a rated basis. This means that the insured is approved, but the premiums are higher due to health or lifestyle issues. 3. The application is declined. Once again, this would be ...
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