Permanent Insurance:

News from 2012

How Can I Pay My Life Insurance With Pre-Tax Dollars Rather Than After-Tax Dollars?

According to Swiss Re, Canadians pay $45.7 billion in annual premiums. Life Insurance premiums are only tax deductible in Canada if one of the conditions below is met: If you purchase a life insurance policy and name a registered charity as the beneficiary, you can obtain a charitable donation receipt for the amount of the policy, which you can claim on your taxes as a deduction. If you are applying for a loan and the institution lending the funds requests that you buy life ...
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Can I Get a Tax Deduction for My Life Insurance Premium and If So, How?

According to the Canadian Life and Health Insurance Association, 22 million Canadians have one or more life or health insurance products. The average amount held by individuals is $169,000, and by households it's $337,000. A popular question, especially come tax time, is "can I deduct my life insurance premium?" In most instances, including in the case of life insurance purchased by a business, premiums are not a deductible expense. However, there are two exceptions: (more…)
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Real Life Insurance Stories: Carolyn Davis-Jardine and Her Husband, Dan

Carolyn Davis-Jardine would have never bought life insurance on her own. As a migraine sufferer with a bad back, she is unable to work and tries to make ends meet on an extremely low fixed income provided by the income support cheques of the Ontario Disability Support Program. It took her second husband, Dan Jardine, to insist that the two get life insurance and he help to pay the premiums before she ever considered it. Then, in August 2010, four short years after purchasing two $25,000 ...
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Real Life Insurance Stories: Lisa Harbinson and Her Mother Joyce Truman

Lisa Harbinson wanted a new life insurance policy for her mother, Joyce. She thought mom was paying too much at over $100 a month for a $10,000 term policy that she had borrowed money against and now had to pay back. Obviously, Lisa thought it was also definitely time to look for a more reasonable plan that wasn't about to expire. She also began to research the cost of funerals so she could purchase exactly the amount she needed to give her mother a proper send-off, but little did ...
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Empire Life Makes Changes to its Permanent Policies

Empire Life will no longer be offering its 20-Pay Solution plan. The policy was a non-participating whole life plan, which offered guaranteed premiums and guaranteed paid-up coverage at the end of 20 years. This policy was very competitively priced in the Canadian marketplace, but the policy is no longer available, effective November 24, 2012. Other changes at Empire include an increase in cost to its Solution Term 100 plan. The premiums will be measured by a significant increase to the ...
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The Advantages and Disadvantages of Corporately-Owned Life Insurance

Corporately owned life insurance is simply life insurance that is owned by an incorporated business instead of an individual. It is most commonly put in place when a corporation is profitable and they want to be able to protect their interest if a business owner or key employee dies. "Another scenario is that a key employee or partner wants to retire someday and the corporation needs an arrangement to provide the cash for when they leave the company. A cash-value policy can be a viable ...
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How are Lengthening Lifespans Impacting Insurance Rates?

Statistics Canada reports that both men and women are living longer than ever before. Men's life expectancy has gone up 0.2 years since 2005–2007 to 78.5 years, while women's life expectancy has gone up 0.1 years over that same period to 83.1 years. People living longer should mean a decrease in life insurance rates, but this has only been the case on the term life insurance side of the business. The Insurance and Investment Journal highlighted in its March 2012 issue that term rates ...
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Children’s Life Insurance: Is It Worth It?

Life insurance for children: is it really worth it? The Globe and Mail wrote an interesting article exactly a year ago, in October 2011, asking "Does your child need life insurance?" "There are usually three main reasons to buy life insurance on a child," says Karl Simon, director of product and marketing for Equitable Life. "The first is to protect the family if the child dies. No one wants to think about their child dying, but the reality is, if the child dies it will affect the ...
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Why Are Whole Life Sales Gaining Momentum in Canada?

Equitable Life's Karl Simon tells us why whole life insurance sales are gaining steam. Whole life insurance sales have been gathering considerable momentum in this country. According to the latest LIMRA statistics, in 2011 universal life insurance sales were up by 1.2 per cent. By comparison, whole life insurance sales increased 17.5 per cent. "Markets have been fairly volatile and not providing a great return," says Karl Simon, director of product and marketing for Equitable Life. ...
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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 ...
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