Permanent Insurance:

News from 2013

Free No-Medical Life Insurance for Children

When it sounds too good to be true, it usually is. But this time, with the help of Foresters' FamilyLife Whole Life Insurance Policy, it can be a reality for your child. If parents purchase the FamilyLife Whole Life policy, they can include the Basic Children's Coverage Benefit at no additional cost. This children's life insurance rider includes $3,000 of term life insurance for any child under the age of 18. In addition, the term insurance policy can be converted into any one of ...
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Which Province has the Highest Probate Fees?

"Probate" is the recognition by the provincial court of the validity of your will and the appointment of the person named as executor. Granting of the "letters probate" is notice to the public that the will complies with the basic formal requirements and that the will was not being challenged at the time of application. Probate fees are a tax on a person's estate, and except for the provinces of Quebec and Alberta, andaccording to Fiscalagents.com,there is no limit to this tax. But you ...
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Life Insurance and Divorce

Although divorce rates in Canada are on the decline -- dropping by eight per cent from 2006 to 2011 -- it's estimated that 41% of marriages will end in divorce before the 30th year, according to The Globe and Mail. If you are a member of that 41% club and are required to pay child support, you will often also be required to buy life insurance, so you can still fulfill your obligation in the event of your death. The Ontario Family Law Act says an order for support binds the estate of ...
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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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