The key term that I keep referring to in many articles is “unmanageable financial risk”.  Would the death of your child present an unmanageable financial risk to your family? In order to explore this more, let’s consider what some of the implications and costs may be…

1.)      The very basic financial risk would be the cost of a funeral.  Most experts approximate this cost between $5,000 and $15,000.

2.)     The more difficult cost to measure is the income lost due to an extended time away from work, and the potential effects that a deeply painful period of mourning may have on a family’s income earner.

The first consideration above is one that parents tend to agree with.  However the funeral costs are often manageable without the need of insurance.  The second consideration requires some serious thought.  Often we do not like to think about things that are difficult.  I would never want to entertain the idea of the death of one of my children, but we must respectfully and consider the potential impact on the family during a very difficult situation.  As a rule of thumb it may be appropriate to consider a policy that can replace 6 months of family income.  This will allow one or both spouses to take all the time needed without any added financial pressure.

Another reason to consider purchasing life insurance on a young child, is that they may be able to assume the coverage with they turn 18 and have their own policy going forward; regardless of their health.  You may also be able to be able to purchase a permanent policy and have it fully “paid-up” (no more premiums required) by a certain date.  This might be an interesting idea to help set them on their way once they are out of the nest.

Often times, life insurance on your children can also be purchased as an additional feature (aka. “rider”) on the parent’s life insurance policy.  You may also be able to combine all your children on the same policy.

If you would like to know more about this concept or discuss some options, please feel free to contact one of our experienced advisors today.

Click HERE or call 1-877-755-9293.

Key person insurance helps to protect the value of the company and ensures its continuation if a valued employee or executive passes away.  Here are a few things that Key Person insurance can do:

• Eliminate or reduce the financial impact of the untimely death of a key  by covering the expense of finding and training a suitable replacement
• Help the deceased shareholder’s estate meet estate tax obligations without compromising or dissolving a family business.
• Protect the business; assuring creditors and clients that the company will be able to continue as usual.

The Details:

The business is the owner and beneficiary of a policy that is taken out on the life of the Key Employee.  If there is a claim, then the death benefit proceeds would be received by the business – tax free.  This can help provide the liquidity needed to attract and develop skilled individuals and security to ensure business continuity if revenues are negatively affected.

Who to Consider This Type of Insurance For:

-          Top performing sales people (a sales person that brings more than 20% of total revenue)

-          Executives (CEO, CFO, COO)

-          Employees who have a technical and rare skill set that is vital to the business.

-          Managers whose absence would present financial risk.

The main thing to remember is the term “unmanageable financial risk”.  If there is person in an organization that provides such value that their illness, disability, or death would present unmanageable financial risk to the business, then key person insurance should be purchased.

Contact us today to have one of our advisors help quantify the amount of risk along with your accountant, and provide quotes for coverage that will protect your business from that most unexpected of events.

Sometimes it makes sense to purchase a joint policy, especially when there is a joint risk such as a mortgage balance.  By purchasing a point policy you get good coverage and can save up to 15% on the expense.  Below is a list of the pros and cons of Joint Life Insurance vs. Individual Life Insurance.

Find out more and compare quotes today – CONTACT US NOW!!

From the time you marry, buy your first home, or start a family; having the right life insurance means that you and your loved ones have peace of mind.

First Things First:

If the insured person dies within the first 2 years of the policy, then the insurance company reserves the right to explore the validity of the claim and examine the policy application for misrepresentation.  This means that a claim can be reduced, if there was an error made in the application, or completely denied if there is evidence of intentional material misrepresentation i.e. insurance fraud.  For this reason it is very important to remember that if an applicant fails to disclose information that would cause a policy not to be issued or to have modified rates, then policy may be voided.  The burden of proof in this case is upon the insurance company.  Claims will also be denied for suicide within the first 2 years of the policy.

When the policy is past the 2 anniversary it is said to be “incontestable” unless there is insurance fraud.  This means that the insurance company must honour the claim, even if there were errors on the application.

Processing the Claim:

Processing a claim can seem like a daunting task that needs to be completed in a very difficult circumstance.  I often recommend that the beneficiary or a representative (lawyer, executor) of the beneficiary contact the servicing advisor to have the proper documents prepared and the process is laid out.  The advisor will require a death certificate and will bring some forms to be signed at your convenience.  It is also the advisors responsibility to work on the beneficiary’s behalf to liaison between the insurance company and the beneficiary and to finally deliver a benefit cheque once the claim is processed.

Because of the process involved in completing a claim request it’s recommended that you purchase insurance coverage with a reputable, respectful, and friendly advisor who you trust with your loved ones in a difficult season.  If for some reason the servicing advisor cannot be located, the beneficiary may contact the insurance company directly, or the servicing agency for assistance.

If everything moves smoothly, then you can expect to receive the benefit proceeds within 3 weeks of submitting the death certificate.

If you’ve read this article and would like to change your servicing advisor, then feel free to contact us by clicking HERE, or by calling 1-877-755-9293.  We’d be very happy to review your current policy and help in any way possible.

1. Compare multiple companies’ quotes for your life insurance.

It really does pay to shop around, but CanadianLifeQuotes.com can save you lot of time.  Just complete the thirty-second form and let us provide you with at least 10 quotes from top Canadian insurers ranked by price.  You can also contact us directly at 1-877-755-9293 to go into more detail and to get fast responses to your questions…without any sales pressure.

2. What rate are you being quoted?

There are two basic rate groups that you should be aware of; Standard rates and preferred rates.  “Standard” life insurance rates are the rates the majority of Canadians qualify for.  It’s the average rate.  Preferred life insurance rates are offered to exceptionally healthy people who have a very good family medical history.  Preferred rates are only offered only after the results of the medical information and tests are known.  It will depend on a number of things other than family history…your blood pressure, cholesterol levels, height, and weight.

When comparing life insurance quotes be sure you’re comparing standard rates to standard rates. If you’re not sure, ask the broker directly which rate you’re being quoted.  There are some agents out there that quote preferred rates to appear cheaper than the competition and thereby “win” your business.  In the end most people are offered standard rates and are disappointed.  They accept the coverage but are lead to believe that it’s their fault (because they’re not healthy enough) and not the advisors.  The advisor should have been diligent enough to inform the client of the likely outcome of a higher premium.

3. How available is your advisor?

Have you tried calling the broker?  How long does it take for him/her to respond?  What are their hours of operation?  Whether it is through a website, over email, or over telephone, the broker should be reasonably accessible to you.  Do they have a toll free number and  are they available at times that are convenient for you?

The advisors at CanadianLifeQuotes.com are available almost all the time and will take the time necessary to move at your pace without sales pressure of any kind.

4. How much medical information do you have to provide?

For a life insurance policy that asks few or no medical questions, the price will most likely be much higher than for a policy that requires more disclosure.  Depending on the life insurance company, the amount of coverage you’re applying for, and your age; you may be asked for blood and urine samples.  Don’t worry, you don’t have to do these yourself (phewwww!).  To obtain the samples, a registered nurse will visit your home at a time that’s convenient for you. This will not cost you anything and is fully paid for by the insurance company – regardless of whether you accept a policy from them or not.

5. What other options does your new policy have?

In Most cases the premium that you are quoted should be a fixed amount for the length of the policy (i.e. 10 or 20 years, or to age 100).  But in the case of term insurance, what happens at the end of the term?  Will it renew automatically without requiring more medical evidence?  What will the renewal premium be?  If you decide that you would like to have permanent coverage, can you modify your policy to make it so?

6. Check to make sure that your life insurance policy can be cancelled without penalty

Term life insurance policies can be reduced or cancelled without a penalty, but double check to make sure that there aren’t any surprises.  Also, if you are buying permanent insurance, make sure that the surrender value and costs are fully explained to you.  When will your policy be free of cancellations fees?

Do you trust your broker?

Keep in mind that if your family should need to make a claim, your advisor will be helping them in the midst of a very difficult situation.  It this person a professional and will he/she provide the level of support and service that your family and loved ones will require.  Will this person keep you informed of key dates like policy expiration dates and renewal dates?

Give us a call today and see the kind of difference that a friendly, professional insurance advisor can make.  We’re thankful for each call and will take all the time necessary to assist you.

1-877-755-9293

1. What you would like your life insurance policy to do?

• Pay the mortgage off and other debts?
• Pay funeral arrangements?
• Provide income for your dependents? For how long?
• Fund the cost for future education of your children?
• A combination of some or all of the above?

Once we know what the purpose is, then we can being to quantify (or put a number on) the amount of insurance needed.

2. Who needs the life insurance?

There’s a variety of products available to meet your family’s specific life insurance needs.  You may need insurance on each spouse and in differing amounts, and there are many ways to customize the coverage specifically for your family.  For example, you can get an individual life insurance policy on your own life and also your spouse’s, or you can get a joint policy.  A joint policy covers both people but they are insured together under one policy. A policy that pays on the death of the first person is called a “joint-first-to-die” (JFTD) policy.  If this type of policy meets your needs, then you can save up to 15% on your overall insurance costs. There are some drawback with this type of coverage, so be sure to read my article on JOINT INSURANCE.

3. How long do you need the insurance for?

• How long is your mortgage amortization?
• How long will your children be dependent on you?
• What age do you plan to retire at?
• Do you want to use life insurance to leave a legacy?

These 3 questions should give you a great start at narrowing down how much life insurance coverage you need and for how long.  Please go on the PART 2 when you’re ready.

• Is the new recommendation comparable to the existing policy?

-          Permanent life insurance policies may have premiums guaranteed to never increase.  But the premium for this type of policy is higher than a term policy.  But the term policy premium will increase on renewal as you get older and get much more expensive than the permanent life insurance.

• Will cancelling the existing life insurance policy have a tax consequence?

-          Many policies have valuable tax benefits.  If you’re advised to cancel a policy that has built up a cash value, then be sure to find out what the income tax may be on the proceeds prior to cancelling.

• Does the life insurance coverage on the new plan expire at any time? When?

-           Many term plans expire when the insured reaches age 85. The claim probability is much higher at this age, and new coverage will either be unavailable or too expensive.

• Are there any fees to cancel or replace the existing life insurance?

-          Many permanent life insurance policies (i.e. Whole Life, Universal Life) have surrender charges.  This could cost thousands of dollars if you cancel your policy, especially in the first 10 years of the policy.

• Can the existing policy be modified to meet your needs, rather than replacing it altogether?

-           Many policies allow you to reduce your coverage and/or add a rider to meet your new insurance requirements.  If you can modify you existing policy you can also avoid have to go through medical underwriting again.

• Are there any circumstances where the new policy would not pay a death benefit?

-          Nearly all life insurance policies will have a two-year suicide and incontestability clause. This means the insurance company will not pay a claim if the insured commits suicide within the first 2 years of the policy.  And the insurance company reserves the right to review the application for “material errors” which would affect insurability and therefore a claim payment within the first 2 years.  They may reduce or deny a claim.  For a claim to be completely denied there would usually have to be “fraudulent misrepresentation”.

Sometimes replacing an existing life insurance policy makes sense and is prudent.  For example, when you’re near the end of your policy’s term and still need coverage, then you may consider replacing it early to lock in lower rates, rather than waiting until you’re older and rates have increased.

NOTE:  A life insurance agent must complete a “Life Insurance Replacement Disclosure Form” with anyone who is replacing a life insurance policy.  This form protects you from bogus advice and sneaky advisors.  Be sure you are given a copy of the completed form and if you’re unsure about things, have another advisor look it over for a second opinion.

Feel free to contact us if you would like a review of your insurance portfolio and your life insurance needs.  We can get multiple quotes from the top insurers in Canada and send them to you.  We never add pressure and are happy to take all the time you need, when you’re ready to move forward.

Contact us TODAY!!

For most Canadians term insurance is a great tool for limiting risk because the majority of the risks that we have are not permanent.  For example, the mortgage (although it seems to take forever sometimes) is a 20 – 30 year risk.  Term insurance is a much more affordable solution than permanent insurance (i.e. whole life, UL, T-100) to protect your family in the event of a premature death and the payments for the mortgage can no longer be made.

For more information on term insurance and to get a full quote list for your specific needs contact us and chat with one of our friendly experienced professionals.

Click HERE

Generally speaking, this type of coverage is recommended for situations like the one described above – where there is an amortized liability and the client has cash flow concerns that would prevent the purchase of a level policy.  For younger Canadians a level policy tends to be very affordable and the additional insurance resulting from the decreased liability each year is helpful as people deal with new insurance needs (kids, increased income risk, etc…) throughout the various stages of life.

If you’re interested to know more about this type of insurance and would like a “hassle-free” quote, contact us HERE

The additional deposits that were made to “pay-up” the policy are accumulated in the policy as a cash value and may be withdrawn, but this may cause the policy to lapse if not done properly.  Having a policy with cash value add a whole level of complexity and much care should be taken with an advisor who can devote the necessary time to explain your policy and servicing it properly.

Get some help without the hassle at 1-877-755-9293 (you can also connect with us HERE)