Life Insurance for a child’s life can be a delicate subject, but can make financial sense, depending on your families financial situation. Insuring a child at a young age guarantees that he or she has insurance now and has the ability to get insurance in the future.
As parents, we would do anything for our kids, but what if the medical expenses were already taken care of and we could concentrate on being our child’s soft place to fall?
Contrary to what certain insurance brokers will try to get you to believe, buying an insurance policy for every occasion is not always a good idea. As everyone has a different need, it’s important to do some research and understand what the right type of insurance is for you.
Taking out an insurance policy you likely won’t ever need is a waste of money and you would be much better off if you decided to invest that money elsewhere instead.
There are also several types of insurance ...
Most Canadians don't really
understand life insurance.
It's no secret that the majority of Canadians don't really understand life insurance. And now there's a survey to confirm that trend.
BMO Insurance released a poll in mid-july 2014, showing that88% of Canadians are not very familiar with the different types of life insurance. In addition,while 74% of those Canadians polled have some type of insurance either through their employer or personal policies, 70% of those ...
Chantal Marr, President of LSM Insurance, was quoted in the July 26 Financial Post article by Melissa Leong titled "Should you buy life insurance for your kid?" Read on to discover what Chantal and two other experts have to say about life insurance for children.When it comes to money decisions, it can be hard to figure out the right thing to do. Money is about power, emotion, morality, and security, among other things. So in this space, we gather personal finance luminaries to weigh in ...
Life insurance can insure the future
of your child with special needs
The Canadian Ministry of Employment and Social Development reports that 202,350 Canadian children had a disability in 2006, which accounts for about 3.7% of children between the ages of zero and 14 — interestingly, more boys (4.7%) than girls (2.7%).
For the parents of these children, the "special" in "special needs" has a pretty large downside that is barely talked about. Many of these children require 24/7 hands-on ...
According to Statistics Canada, there are more than 350,000 children born in Canada every year.
Many financial experts say that life insurance for newborns doesn't make sense. The common rationale is that you're not financially dependent on your baby, but rather, your baby is financially dependent on you.This makes sense on the surface, but what about the parent who likes the idea of giving the child a head start?
If you look at it this way, insuring a newborn offers plenty of ...
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 ...
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 ...
According to CBC, "Between 1994 and 2005, rates of high blood pressure among Canadians skyrocketed by 77 per cent, while diabetes rose by 45 per cent and obesity by 18 per cent." Further, "More than 250,000 Canadians in their 20s and 30s had high blood pressure, making them the newest at-risk group."
Plus, The Childhood Obesity Foundation of Canada reports the following: "There has also been a dramatic increase in unhealthy weights in children. In 1978, only 15% of children were ...
Most parents looking for life insurance for their children are looking for permanent policies where the coverage remains level for the insured child's lifetime.
Many of these whole life or universal policies can be paid up in a limited number of years and build a cash value.However, some parents are looking for more basic coverage for their children. Term insurance can provide an affordable solution if this is the case.
There are two types of term policies for children.
Now may be the time to buy
BMO's 20-pay whole life
plan for children
BMO insurance offers a 20-pay non-participating whole life plan for children.
The plan is very competitively priced and offers lifetime protection and is fully paid up at the end of 20 years. Ithas higher guaranteed cash values than most of its competitors and offers a unique 50 per cent paid-up provision at the end of 10 years, meaning that if the applicant stops paying at the end of 10 years, theinsured ...
Which type of Life Insurance policy is best for your child? This is a tricky but important question.Let's break the answer down into three categories.
1. Permanent Life Insurance
This is the most expensive solution for a child, but it also offers the most comprehensive coverage.Permanent Life Insurance solutions for children include the following.
You can affordably
insure your children
A Children's Life Insurance policy can be a great way to protect your child's future insurability, and it offers some valuable benefits.
However, the challenge can be fitting in the cost with your other financial objectives, but the good news is that a Child Life plan can accommodate almost any budget.
Below are examples of pricing for different child life plans and some of the key benefits of each plan.
1. Whole Life Insurance
This is the ...
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 ...
BMO Insurance offers the following four policies directly to consumers through its website.
These policies are not sold via their independent brokers, but BMO Insurance does offer a host of life insurance policies through independent brokers.
1. EasyTerm — Term Life Insurance:Available to Canadian applicants between 18 and 75, if the insured is between age 18 and 65, he or she can can get up to $249,999 in coverage without a medical examination. BMO also guarantees the renewal of the ...
As of July 23, Assumption Life announced they will no longer carry Odyssey Universal Life, Whole Life and Whole Life Junior, T-10 term life insurance and Guaranteed Economic Life. The reason behind the decision has to do with the fact that all of their other products are integrated into their online application system and these ones are not.
“We have come to realize that these products no longer fit our business model and have therefore decided to simply withdraw them from our ...
Life insurance premiums can be pretty expensive even though they're one of the most worthwhile investments you can make for the future of your family. Luckily, LSM is sharing the tricks of the trade, which will allow you to still protect your family without sending yourself to the poorhouse.
The following are six ways you and your family can save thousands of dollars when buying a life insurance policy:
Industrial Alliance advantage:
Child Life and Health
Industrial Alliance has several unique products and features within its life and living benefit insurance lineup. The following are eight key benefits that help separate Industrial Alliance from its competitors:
1. Their Joint last-to-die policies offer an option in which the surviving insured can cash out the accumulation fund tax-free on the death of his or her first spouse.
2. Their Universal Life policy, with a yearly ...
Industrial Alliance offers a child life and health dual policy, which provides insured people age 0 to 20 with a combination of life insurance and critical illness insurance coverage.
Here's how it works:
Assuming the insured takes a face amount of life insurance, say $200,000, half of that policy face amount is provided in the way of Critical Illness coverage. If the child were to develop a critical illness, this amount would then be deducted from the life insurance. The policy becomes ...
Faith Life Financial offers the following two participating whole life policies:
1. The Whole Life Life Pay plan
2. The Whole Life Life Pay paid-up at 65
Whole life insurance, payable for life, is available to non-smoking applicants age 18 to 75 and smokers up to age 75. (in an odd twist, children 18 and under are issued smoker rates, but can switch to non-smoker rates at age 18.)
Death benefits can be as low as $10,000, and payments can be made on a monthly or annual basis. The ...
Cover your child
with Youth Plus
Assumption Life introduced a children's term life policy called Youth Plus.
The policy is available to applicants ages 15 days old to 17 years old. The premiums remain level for the insured's lifetime, while the face amount can range from $35,000 to $175,000.
There's an annual policy fee of $40 and a built-in critical illness benefit. The benefit pays out if the insured is diagnosed with one of the following critical illnesses: cancer, stroke, heart ...
Assumption Life recently introduced Youth Plus. It is a term life insurance product designed for children. The policy is available to insure children between 15 days old and 17 years of age. The features on the policy include the following:
1. Term life insurance until the child has turned 25
2. Guaranteed sum insured payable upon death
3. Non-participating insurance (no dividend is payable)
4. Guaranteed level premiums, which means the premiums remain the same for the duration of ...
Empire Life offers renewable and convertible Term policies as well as Non-Participating Whole Life policies and Universal Life plans.
Empire life's Term 10 and Term 20 policies are convertible to age 75 and renewable to age 100. Both of these features are unique to the industry because most insurance companies offer conversion options to age 65 on their Term 10 and Term 20 policies.
In addition, Empire’s Term plan can be converted without a medical to their Term 100, 20-Pay ...
So something has happened to you or your family, but thank goodness, you have insurance, and now it's time to file a claim. But how is that done exactly? What do you need to do to prepare?Don't stress! We'll show you...
Life Insurance Policies
Filling out paperwork is the last thing you want to do when you lose a loved one who has named you his or her life insurance beneficiary, which is why we at LSM Insurance try to make the paperwork as painless as possible. Still, here are the ...
LSM Insurance has been providing life insurance solutions to Canadians for just under 20 years.
Our team of experts helps unravel the mystery of life insurance and answer questions like the following:How much life insurance do you need?
What is the best type of life insurance plan?
Which life insurance company has the the best rates?
Will my occupation effect my premium?
How much more will I pay because I smoke and how long do I have to quit smoking to get a ...
Most life insurance companies in Canada allow the insured to add riders to their life insurance policies. Adding a rider to a policy versus taking out a separate policy can mean substantial savings for the insured.
The reason for this is that life insurance policies have a built-in policy fee that covers the administration of the policy. This fee is hidden to the consumer because it is built into the premium, but it is nonetheless secretly added to each and every policy in Canada. ...
Canada Life increased rates on its Universal Life Level Cost of Insurance, and Limited Cost of Insurance policies, as of February 7, 2011.
The increases followed rate hikes by Manulife, Industrial Alliance, and Equitable Life. Many Canadian insurers have had to re-evaluate the pricing of their Universal Life policies as a result of continually, historically low interest rates. As a result, clients will see the following changes:
RBC Insurance's Universal Life policy is available with a level or increased cost of insurance. Both versions have a Children's Term Rider, which is available to children ages 14 days to 20 years. Benefit amounts are $5,000 to $30,000 per child. The premium for the rider does not change when additional children are added.It's the same price whether one or a dozen children are added.
Eileen McGeough bought life insurance for her two children after her neighbour's teenage son was killed in a car accident almost 20 years ago. The sudden death and watching the family struggle in the aftermath left McGeough feeling vulnerable. At the time, the young mother knew she wouldn't have the money on hand to bury one of her own children. For $15 a month per child, life insurance gave her some peace of mind.
"You don't think about these things until something happens," says ...
May Alexander knows all about kids and accidents. As mom to two active boys, ages five and seven, she's seen her fair share of bumps and bruises. Those she can handle, but it's the big things - major accidents or injuries - that scare her: first and foremost the horror of her children getting hurt, but also how she'd cover the cost of everything from rehabilitation to prosthetics. As a result, this Toronto mother invests in accident insurance ... just in case.
"Anything that says ...
Protecting their children’s future insurability is a priority for many parents.
Canada Life’s child’s term life insurance rider provides increasing term life insurance for children on the policy of an insured parent. All insured children are covered for one low, level price to age 25.
For most people, a life insurance policy is a way to protect assets or maintain a lifestyle for dependents when the main breadwinner passes away. This makes such policies for children seem unnecessary and even morbid.
Heaven forbid the unexpected happens: Lung Cancer, Leukemia, Cystic Fibrosis. Critical Illnesses can befall children as well. As parents, we would do anything for our kids, but what if the medical expenses were already taken care of and we could concentrate on being our child's soft place to fall?
Putting a life insurance policy on a child may seem like just something insurance broker parents do to collect an easy commission. After all, they have no dependents and they're expected to out live those that raise them. Not so fast, there is a method in the perceived madness.
Whole Life insurance can provide a valuable option for individuals looking for lifetime protection, fixed premiums and a tax sheltered savings component.
Participating Whole Life policies allow the insured to participate in the profits of the insurance company. By taking out a policy on a child, the insurance can benefit in the following three ways:1. They lock in at a low cost.
2. The policy can be paid up in a limited number of years.
3. It allows the insured to lock in at their ...
Protect your child's future with Great
West Life's Child OasisGreat West Life has a unique Citical Illness insurance plan for children "Child Oasis". It's designed to provide families with the financial resources necessary to support the recovery and care of a child with a critical condition. It also helps insure their future insurability. Some of the features and optional benefits of the Child Oasis plan are the following:
A lump sum benefit of ranging from $10,000 - ...
The Novaks, have a sick child - and a growing financial problem by Julie CazzinNovaks are living every parent's nightmare. Two years ago, their 11-month-old son Leo fell sick. He suffered for days with what his parents thought was the flu. Then he developed a rash and began to cry in constant pain. For six months, the Novaks ferried Leo from one doctor to another in their hometown of Sudbury, Ont. Nobody could identify his problem.
Over 4,000 participants are expected to attend the 26th edition of Step Up for the Children with Standard Life, to be held on Saturday, June 14 on Ile Sainte-Hélène at Parc Jean-Drapeau in Montreal. The event will begin at 8:30 a.m. with the 10-km race, followed by the 5-km family walk at 10 a.m.
Event ambassador and Montreal Canadiens defenceman Francis Bouillon and child spokesperson Valérie Bernier will open the walk. It will also be a fun celebration for ...
On our web search for life insurance, we were fortunate enough to meet Syed M. Raza of LSM Insurance. He patiently listened to our needs and concerns and hence provided us with the best solution and advice suited uniquely to what we had desired for the financial security of my family. I recommend the services and help of Syed Raza at LSM Insurance to anyone who is looking for financial security and peace of mind."