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Why do I need Life Insurance?

People buy life insurance for many reasons, it can be for final expenses (funeral costs, emergency expenses) or making sure your family is taken care of in the case of a premature death. In many cases it is to cover off debts and taxes that may be outstanding to the deceased estate.

What are types of Life Insurance policies are there?

Where are two main types of policies: "Term" and "Permanent". Term Life Insurance offers temporary protection and is initially more affordable, but gets more expensive as you get older. Term Life has no cash value. Permanent Life Insurance plans offer lifetime protection and can accumulate cash value, but initially are more expensive than Term Life Insurance.

How much coverage do I need?

How much coverage you need will in most cases depend on what are you hoping your insurance will cover. For example, some people just want enough to cover their funeral costs and final taxes. Other people want enough to pay off their mortgage or to cover long-term needs like retirement or their children's education.

How much does it cost?

The cost of the life insurance depends on several factors, here are the main 6:

The amount of insurance
Your age
Your gender
Your current health and medical history
Smoking status
Lifestyle (for example: what is your driving record or are you a recreational aircraft pilot?)

What services do you provide?

As a nationwide insurance brokerage, we work with over 20 of Canada's largest insurance companies to compare plans on the market on your behalf.
When you use our services, you have access to:

  • All types of life insurance offered in Canada.
  • The ability to compare quotes from providers to get the lowest possible rate.
  • Customized insurance solutions that address your financial needs and liabilities.
  • Expert advice from our team of professional brokers.

What happens when my term policy expires?

At the end of a term life insurance plan, the policy is considered concluded and no further payments nor coverage are carried forward. However you do have two options available if you wish to continue coverage:

Renew your term at adjusted rates.
Convert your plan to a permanent life insurance policy.

In both cases, Canadian insurers allow you to apply for a new policy at expiry without the need for a new medical exam, and you may change your coverage amount or add benefits on your plan as you wish.

What happens if I miss a payment?

With "Term" policies there is a 30-day grace period in which the insured will be covered if a premium is missed. After that, there may be medical requirements if the insured wishes to have the policy reinstated. With some permanent policies that have cash values, the premiums can be drawn from the cash value until it is exhausted.

Can I cancel my policy?

For most policies you are able to cancel it within 30 days and you will receive any paid premiums back. You can still cancel your policy after 30 days. Any premiums paid, however, will not be reimbursed. In addition if there are cash values associated with the policy there may be tax consequences at cancellation.

Can I buy a policy on someone else's life?

Yes you can, firstly with their consent, and secondly, you must have an insurable interest. This means you need to have a financial liability or loss if that insured person dies. Some examples are, of course, immediate family members and business partners.

Can I get Life Insurance without a medical exam?

Yes, there are an increasing number of non-medical life insurance providers in Canada that typically offer Simplified or Guaranteed Issue Coverage. With Simplified Issue policies there are no medical exams just a few health questions and the coverage start from day one. With Guaranteed Issue there are no medical exam or health questions, but there is a two-year waiting period for the death benefit; therefore, if the insured dies in the first two years, the plan will only reimburse the paid premiums. In general No Medical Exam Life Insurance is more expensive than traditional life insurance.

Can I still be insured if I've been declined in the past?

Being declined for coverage can make it difficult to apply for further coverage, as your insurance history will be questioned on many applications. Fortunately, you may still qualify for life insurance under two circumstances:

Under a deferred policy, which pays full benefits after two years.
Under a guaranteed issue policy, which will insure you under any circumstance as long as you meet the age requirement.

What is cash surrender value?

Cash amount available to the owner of a life insurance policy when the policy is cancelled before the death of the insured.

Is there a possibility that a life insurance policy will not payout?

There are instances when a policy is not paid out:

False or misrepresented information on the original application
Death during a criminal act
Death during war

Please note that some policies have a waiting period (typically two years) before the death benefit is paid out.

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