Two types of coverage are available TERM LIFE INSURANCE or PERMANENT LIFE INSURANCE.
Term Life Insurance is an inexpensive type of coverage, ideal for short term needs such as protection for loans, line of credit coverage, mortgage life coverage, income replacement coverage, last expenses. All benefits that are paid out at time of a claim are tax free to the named beneficiaries under current legislation.
You can select a length of term that best suits your needs, usually 10 years, 20 years or a 30 year term.
When applying for this type of coverage, our firm helps you try to determine your health profile to ensure that we can recommend the ideal product and carrier needed to obtain the lowest possible rate for this type of policy, based on your health. One’s individual health is reviewed and studied by the life insurance underwriters, and factors such overall health, height and weight, specific measures such as blood pressure, cholesterol levels, sugar levels, immediate family member’s health history usually up until age 65 and one’s non smoker or smoker status are evaluated.
Lifestyle questions are asked regarding daily alcohol usage, use of prescription drugs, and recreational drugs and any health conditions. Operations in the past or any being contemplated must be disclosed at the time of application.
Avocations such as racing cars, motorcycles, snowmobiles, skydiving, bungee jumping or the piloting of aircraft will require additional information at time underwriting or at time of completion of an application.
Once the face amount of the coverage is determined, this type of policy provides one with a fixed guaranteed level payment for the length of term desired on a monthly, semi-annual, quarterly or annual payment basis. These policies can renew at guaranteed renewal rates stated in the policy, usually up until age 80 or 85 depending on the company.
Face amounts of $50,000 to $5,000,000 are available with larger face amounts considered on a case by case basis.
These term policies contain a very valuable non-medical exchange option commonly know as a conversion option up until a specified age, usually age 65 or age 71 depending on the insurance company. A policy holder may convert (change) their type of policy (all of the sum insured or a portion of it depending on their needs) to a permanent life policy, as explained below.
Tip: to those with existing term life insurance if you are in the midst of a current term and have looked into your future guaranteed renewal rates or are faced with an excessively large guaranteed renewal notice, it might make sense to take the time to shop the current term life insurance market with our firm. If you are still in good health, you may be able to challenge your existing company with your good health to see if you may be able to obtain a more favourable rate for new insurance. You may also find another company that may offer better value and a policy with unique benefits not offered with your current provider. I will be happy to explain how this can be done and the medical requirements needed to do so.
Permanent life insurance used to cover permanent long term life insurance needs.
These policies are used for one’s estate planning needs and/or charitable giving strategies. All benefits that are paid out at time of a claim are tax free to the named beneficiaries under current legislation.
These policies provide a guaranteed fixed level amount of coverage at a level fixed cost for life which is guaranteed never to change for the life of the policy. Commonly known as Term to 100, coverage is purchase at one’s attained age and can be maintained to age 100.
Should someone live past age 100 no further payments are required and this type of insurance policy stays in effect for as long as they remain living.
Tip: buying permanent coverage at a young age is the most inexpensive way of obtaining this type of with good health and hopefully good family health history.
The same health questions and underwriting criteria needed to apply for a term policy will be required for a permanent policy.
Face amounts of $10,000 to $10,000,000 are available with larger face amounts considered on a case by case basis.
For those who do not want to pay premiums to Age 100 there are Tax Advantage Permanent policies available that allow policy holders the ability to fund the policies so that they can be totally paid up in a shorter period of time. Examples could be over 10 years or by age 65.
These policies are tailored specifically to provide the lowest cost of funding their long term life insurance needs, doing so with maximum tax efficiency.
