Here are 7 quick tips for anyone purchasing Life Insurance in 2021:

MOST BROKERS AREN’T REALLY BROKERS

Going to a broker seems like a good idea to many Canadians. You want the best policy for you, regardless of your situation. So you decide to go speak to a broker, you know, someone who can shop the market for you. Find you the best policy and who can help you apply. However, most brokerages aren’t TRUE brokers. You see, most brokerages only offer a few companies.

You might think you are speaking to someone who can find you the best company out of all the companies in Canada, only to later find out most brokerages don’t offer every company in Canada. It’s best to ask your representative which companies they offer and are there other options available on the market.

 

INSURANCE COMPANIES WILL NOT OVER INSURE THEIR CLIENTS

Many wonder if they are overpaying for their coverage or if they should cut back their coverage to save on premiums. But did you know, insurance companies look for the need for insurability when you apply, even if they don’t directly ask it? Insurance can be purchased to:

 

• Help replace a loved one’s income 
• Pay off debts 
• Pay off expense that could occur when someone passes away unexpectedly 

Read “When Should You Buy Life Insurance?”

 

When you are asked for your income, debts, assets, and beneficiary the insurance company begins to have an understanding of your particular situation. From here, insurance companies can decide if the amount of coverage is in the range of acceptability or if they need more information regarding your need for insurance.

If you have applied for an amount of coverage that does not meet the guidelines set by the insurance company you could be declined due to over coverage. Or the insurance company might decide to offer you a lesser amount of coverage than you originally applied for.

 

WHOLE LIFE ISN’T FOR EVERYONE

Whole Life Insurance has its place in the market, but it’s not for everyone. For most Canadians, it’s a better idea to buy term and invest the difference. The reason for this is long but one of the major reasons would be that your need for insurance decreases over time. Hopefully, over time, you pay down your debts, pay off your mortgage and your liabilities become assets (for example paying down your mortgage). This would also decrease the need for life insurance over time, which is why for many Canadians term life insurance is a better choice (and it’s more affordable).

 

TERM INSURANCE ISN’T A BAD THING

Most Canadians need a term insurance policy and that is it. The best part is term insurance is the most affordable form of life insurance. As we get older and our liabilities turn into assets and the need for life insurance becomes less. In situations like this, term insurance is a great fit.

 

HOW YOU PLACE YOUR POLICY IS A VERY IMPORTANT STEP

Often you hear of “horror stories” of people who bought a life insurance policy paid for it for many years and when they went to file a claim the payout was denied. But did you know, this often comes down to the fact that the policy wasn’t placed correctly in the first place?

For Canadians who lie on their application, there is a good chance your coverage will not pay out when you need it to. Lying on your application whether it’s saying you a non-smoker when you are or you lie about your health in general is considered fraud or misrepresentation. In these cases, insurance companies reserve the right, not to payout.

 

YOUR ADVISOR IS WORKING ON 100% COMMISSION

We notice several years ago that many people had a hard time deciding on what coverage to purchase, just because they knew their advisors were working on 100% commission. Meaning the more you spent on your coverage the more the advisor would make. This became very problematic.

This is why we created TIP Services to have non-commissioned staff members to help you through your decision making process regardless of your choice they are paid the same salary. Which helps to take their bias out of the conversation.

 

ASK FOR HELP

Life insurance can be confusing. It can be confusing for people who are looking for coverage or those who have purchased coverage years ago and are looking for new coverage. Don’t be afraid to ask for help and work with someone who is will to help you through the process as opposed to pressure you into making a decision quickly.

Have you heard? You can now get your first 4 months of your term life insurance paid for on new applications. But is it too good to be true? The short answer is, no. But it is worth understanding a little more before applying. 

It’s no secret COVID-19 took the world by storm. But many people don’t know how this affected the insurance industry and better yet, how you can take advantage of this. 

When the Canadian government first began restricting human contact this became a problem for insurance companies. I’m sure you will find this humorous but when COVID19 happened many insurance companies would only accept paper applications. In fact, there were only a few companies that allowed you to apply online or over the phone and most of those companies only offered a small policy ($25,000 or less) to be applied over the phone. This forced many companies to make changes in order to keep business. 

What happened next was companies began to roll out online or non-face-to-face applications but at this time many Canadian didn’t feel the full impact of this disease. People were still under the impression this would last for a few weeks at most and everyone was going back to normal. This is not great for the insurance business. So what some insurance companies began to do was offer incentives for new applications. One of those incentives were having the first 4 months of your application paid for by the insurance company. 

As you can imagine a few months go by and now many Canadians know the impact COVID-19 is having and many more Canadian realize they can not afford to lose their loved ones. This is when insurance became a popular conversation in many households.

As of January 2021, insurance companies have seen a massive inflow of new applications. You see we are right at the cusp of yet another shift but this shift, when it comes, will not be in your favour. With the increase in new applicants over the last few months these insurance companies will not have to give the same incentives because the demand for new applicants exceeds their need for new business. 

The good news, as I write this, you can still get the first 4 months FREE on new applications, but not for long. For anyone looking to purchase life insurance, now is the time! 

If you have any questions or would like to apply reach out to us and one of our non-commission staff members will happy to help. Don’t wait before it’s too late. 

Where does Life Insurance stand in 2021?

It’s no secret, life insurance has become more talked about and harder to get than ever before. With COVID-19 being a wake-up call for many, the importance of life insurance is clear. But with the rush of new policies in 2020, it has also become harder to get a life insurance policy. Here is our guide to help.

Start with your existing health conditions

Your health should always be the striating point when purchasing life insurance. Even if you have health concerns that make you hesitate to purchase life insurance, I have good news, there are some great choices. More on that to come. However, being honest with your health status is crucial to getting a policy that you can afford and can help protect the people you love. More insurance companies have become a little tougher with their approval process, which is why having an insurance advisor that can help you navigate the landscape is important.

Coverage

That would depend on a wide variety of factors. What are you looking to cover and how long do you need coverage for? Here is a simple to use Life Insurance Calculator that can help you understand how much coverage you need.

Cost

Cost is very important. It always comes down to the cost to own life insurance, and you should never purchase a life insurance policy that you cannot afford. However, what’s worse than that is not purchasing a policy altogether. It’s better to leave your loved ones with something than out of pocket.

Choice

There is a massive debate out there where you see people argue over term life insurance or permanent insurance. Which is better? Well, the correct answer would depend on your situation. Term life generally is better for covering short term debts.

TIP OF THE DAY

  Don’t be afraid to apply to multiple companies. With companies being tough on their application process you could always apply for guaranteed issue life insurance first, and at the same time apply for traditional coverage. That way if you are turned down from traditional coverage you will still have the guaranteed coverage.

There are many Canadian life insurance companies available to the public in 2021. Below you will find a list of companies and a link to each companies website.

In 2021 the largest life insurance companies in Canada were Great-West Life (which includes Canada Life and London Life), Manulife, and Sunlife.

Most of these companies offer a wide range of products and services.

 

Assumption Life

Assumption life has a wide variety of products, both in their life insurance and retirement planning services.

Assumption Life is well known for some of their guaranteed issue life insurance policies. Being one of the only companies to offer guaranteed issue whole life insurance.

 

Blue Cross

Blue Cross has been around for more than 72 years and is one of Canada’s largest providers of medical care.

Blue cross is the best to know for their dental, medical, and vision care. With some great products that also offer long term care.

 

BMO

The bank of Montreal is one of Canada’s premier banks. Although life insurance may not be one of their main focus they have significantly grown their business over the past 10 years.

BMO is most competitive with their term life insurance policies. They offer good rates and a variety of term plans.

 

Canada Life

Canada life is one of Canada’s largest insurance companies (which includes great west life and London life).

Canada life has been competitive in disability insurance. But also offer a wide variety of products.

 

Canada Protection Plan

CPP is one of the fast-growing insurance companies in Canada. CPP is the best to know in the guaranteed issue space. Offering no medical coverage.

 

Desjardin

Some people would be surprised that Desjardin didn’t make the list of the top insurance companies in Canada. However, if you were to look at Desjardins total business in North America they would be considered the largest of the group.

Desjardin is very competitive in corporately owned critical illness policies.

 

Empire life

Empire life has been a staple of Canadian life insurance companies for many years.

Empire life is most competitive in the annuity and guaranteed minimum withdrawal benefit space.

 

Equitable Life

Equitable life is one of the last mutual companies. Where most insurance companies are owned by their shareholders, equitable life is owned by their policyholders.

 

Foresters

Foresters is another insurance company that offers some living benefit options and is also strong when it comes to their term life insurance pricing. If you are looking for a term life insurance quote and are between ages 20-33 expect Foresters to be one of the more competitively priced companies.

 

Humania

Over the past 75 years, Humania (formerly LS Mutual) has grown to become one of the leaders in guaranteed insurance. Humania offers good coverage with a fast application process that can be done completely over the phone.

 

Industrial Alliance

IA has a very unique RESP product. For parents who are looking to put some money away for their Childs education, IA offers additional credits over and above what you would get from your government grants.

 

Ivari

Formerly known as TransAmerica, Ivari has a strong lineup. They do not offer a whole life insurance product but they have a Universal Life product that can be used as a level cost insurance thus giving you permanent protection. Where they are strongest is they have term 30 options, great for covering your mortgage. To see a full review of Ivari Term 30 CLICK HERE to read the article.

 

La Capitale

La Capitale has a very easy application process. You can apply using an IPAD (which is still relatively rare for the life insurance space). Their term prices are fairly competitive, although not the most affordable in many situations.

 

Manulife

Manulife is also one of the largest companies in Canada, which also offers a large variety of products. Being one of the first companies to offer up to $1,000,000 in coverage via a non-face-to-face term application. Because COVID 19 limited the number of times people spent in front of one and another, this option became very important for consumers.

Manulife is very competitive in the corporate life insurance space.

 

RBC

RBC offers specific term length on their term policies. Meaning, if you need coverage for exactly 23 years, you can get a 23-year term. Where most companies offer standard Term 10, 20, and 30.

 

Specialty Life

Great when it comes to final expense insurance.  Many Canadians wait too long when it comes to getting life insurance. Specialty Life Insurance offers affordable final coverage to cover the cost of a funeral.

 

SSQ

Very competitive in the Critical Illness space. Not only do they have a larger number of conditions but also very competitive on price. This is one good reason to look into this Quebec based company, SSQ.

 

Sunlife

SunLife for many years had been only available to their in house advisors. Meaning if you owned life insurance through Sunlife it was because you worked with a Sunlife advisor. However, in recent years they have opened up their product line up to the broker level. Now you can purchase Sunlife products through brokers as well as in-house advisors.

 

Wawanesa

Very easy application process. Wawanesa offers some great guaranteed issue products. Pricing wise, they are competitive with CPP and Assumption life.

With the majority of Canadians now purchasing Term Life Insurance online, it is important to look at what you need to know before getting Life Insurance online. Let’s break down the key factors in getting term a life insurance quote online, and what to look out for.

First, let’s look at coverage amounts. Many people think buying life insurance is like getting a mortgage, the larger the mortgage the more you pay. This is not necessarily true with life insurance. How much you pay for life insurance is more dependant on the type of policy you purchase. So when it comes to coverage amount, don’t be intimidated by the coverage amount, as many Canadians with children in their 30’s likely need over $1,000,000 of coverage. Where later in life very few Canadians need $1,000,000 of coverage. You need for life insurance changes over time.

Second, let’s look at the different types of policies so you know which is best for you:

 

Term 10

 

Term 10 coverage is the most common life insurance, with almost every insurance company offering a term 10. This coverage will last for 10 years where the amount you pay each month (your premium) and the coverage amount will stay the same for 10 years. At the end of 10 years, you can choose to either cancel your coverage, convert your coverage to permanent coverage or renew at a higher price (based on your new age).

• Most affordable
• Great for young adults who know they need coverage
• Typically bought when purchasing a mortgage

 

Term 20 

 

Much life term 10, you know your coverage and premium will stay level for 20 years. This option is slightly more expensive than term 10, however, if you are looking to compare a term 10 and let it renew at year 10, it will actually cost you more than to buy term 20 in the first place.

• Better for people who need coverage for longer than 10 years
• Very affordable
• Many companies offer competitive term 20 polices

 

Whole Life Insurance 

Whole Life Insurance is a little different than the term. Whole life offers a level amount of coverage for life. As well as level premium payments for life. What whole life insurance offers that Term doesn’t is a Cash Surrender Value. Think of this cash surrender value (CSV) as a forced savings account. Just by paying for your life insurance, this CSV will grow over time, you have access to the funds if you need it.

• Level premiums for life
• Cash surrender value for savings
• Some companies offer dividends on their whole life policies

 

Universal Life Insurance 

Universal life is arguably the most flexible coverage. UL has a cash account as well, unlike whole life, this account can be invested in market-based investments so your savings account could grow at a faster rate, but also lose money if not invest well.

• Most expensive option
• More risk, with a greater reward
• Only a few companies actively sell many UL policies

So which is best for you? Well, that depends on your needs. All of the options have a place in the market. It’s best to find an advisor who will work with you, regardless of their commission, they will make the best recommendation for you.

This article gives you the initial insight into which plans might be the right direction for you.

Most people don’t consider life insurance until they are in their 30s and have a family that depends on them. Here are 7 things you need to know before getting a life insurance policy:

1. Life insurance is affordable

   In 2015 a study was done that showed most people overestimate the cost to own life insurance. One of the major reasons people don’t buy life insurance is the cost, even though it is less than most people would think. More on this to come, where we will show you how easy it is to get a quick quote.

2. Different products for different situations

   There is a massive debate out there where you see people argue over term life insurance or permanent insurance. Which is better? Well, the correct answer would depend on your situation. Term life generally is better for covering short term debts. Things like your mortgage or student loans would become someone else’s burden. Whereas whole life is a better fit into an overall financial plan. Especially if you have a corporation whole life insurance can help you increase your earnings while being able to take more money out of your corporation tax-free.

3. When will your term life policy increases

   Term life insurance often comes in Term 10, Term 20, and Term 30 plans. The numbers represent how many years until your premiums will increase. For example, 10 years after purchasing a term 10 product your rates will automatically increase, without having to do another medical.

4. Do I need a medical exam to get life insurance?

   No, in fact, there are some great non-medical options out there. With more and more companies coming out guaranteed life insurance, you can be assured there are some great options. For a list of reviewed companies CLICK HERE  

5. How much life insurance do I need?

   That would depend on a wide variety of factors. What are you looking to cover and how long do you need coverage for? Here is a simple to use Life Insurance Calculator that can help you understand how much coverage you need.

6. Which company is the best?

   As always, there is never 1 company that is best. It would be the same as saying Burger King is better than McDonald’s. Where in reality McDonald’s is better for some people where Burger King is better for others. What is best to do is understand why you are looking for life insurance, how much coverage you need, and how long you need coverage for. From there you can find the best coverage for your situation.

7. How do I get a quote?

   This is where we come in, many people have told us, they want to get a quote without speaking to anyone, without having to add an email or phone number. So we provide that exact solution. You can now shop the market from the comfort of your home, with no sales reps, no need to give up your personal info. Simply get a quick insurance quote from us by CLICKING HERE and begin shopping for the best insurance quote.

For more information or help finding the right life insurance for you, contact one of our non-commission staff members who are waiting and would be happy to help!

As one of the leading brokerages in Canada when it comes to guaranteed issue life insurance, one of the most common questions we get is:

“What are the top insurance companies in Canada for guaranteed life insurance?”

 Simply it’s not the right way to think about it. Every company is different, their policy is different, their coverage amount is different, how much they cost differs, and so on. It’s better to look at your own specific situation and figure out:

 

Which company is best for you?

Most Canadians who purchase a guaranteed Life Insurance policy do so because they have some health problems that would make it more challenging, if not impossible to purchase traditional Life Insurance. The truth is depending on the coverage amount, the time you need the coverage, and whatever health concerns you have all play into which company is going to be the best for you. Let us take a little look at these three areas in a bit more depth.

 

How long do you need coverage for? 

The length of term you need changes person to person. Just because you are getting older or are hard to insure doesn’t mean there is one size fits all. In fact, far from it. Companies still offer a wide variety of term lengths from term 20 to T100 or other forms of whole Life Insurance.

 

A term 20 or Term 30 might be a good fit for someone looking to cover a mortgage, which we see more of these days. The older generation is helping young adults purchase their first house and are in need of some financial protection. This option may be a better fit for someone in a similar situation.

 

Term 100 or Whole Life is great for people who are thinking about their final cost. You see, we all leave the final expense. Funeral cost, medical bills, other debts, all end up on the shoulders of your loved ones. But it doesn’t and shouldn’t be that way.

 

How much coverage do you need?

 

How you answer those questions determine how much coverage you can purchase at that time. As mentioned earlier, those ranges change company to company. So working with a brokerage is a good idea, as they can help you find the best policy for your specific needs.

 

Working with pre-existing health concerns 

Guaranteed Issue Life Insurance is designed to work with people who are traditionally hard to insure. That being said, each company qualifies “hard to insure” slightly differently.

 

Depending on your conditions would depend on the company you go with. When working with a true broker it’s easy to see by their approach if they are recommending the right option.

 

Typically if you have a severe condition they may be able to recommend something on the spot. However, if you are the majority of “hard to insurance” it’s because of several medications you take, and in that saturation, your broker should get a list of your medication and then do some research into which company would be the best company for you.

 

It is impossible for any advisor to be able to know every medication and every situation that could come up, its times like those you can tell if you have an advisor worth working with.

 

For more information or to get a quick quote CLICK HERE

It’s no secret, if you are diabetic and depend on insulin needles life insurance becomes either very expensive or (seemingly) impossible to be approved for.

This holds true for medically underwritten policies. However, Canadians who have type 1 diabetes and depend on insulin still have some great options. Let’s explore your options to being able to own affordable life insurance, even if you have type 1 diabetes.

First, it is worth noting if you are a type 2 diabetic, you will have a few more options than someone who is dependent solely on insulin injections. We will cover this in additional articles. For now, let’s focus on Type 1 diabetes.

 

How to recognize if you have Type 1 Diabetes

 

In a perfect world, as someone who is diabetic, you should work with a company that has many different options for insuring someone who has diabetes. The problem here is that for many diabetics, their first point of contact is normally with someone who only has access to 1 insurance company.

If that company doesn’t want to insure them, then the outcome means they won’t get insurance. The real problem is that once one insurance company declines you, your options become even more limited than before.

As I have mentioned if you are type 2 diabetic, you have options, even medically underwritten coverage. If you are Type 1 your options become guaranteed acceptance life insurance. From here you will need to understand the 2 overall categories you might fit in, in order to understand your options.

 

Option 1 – Type 1 diabetic who has never been turned down for life insurance

If this is you, I have good news. There are many different insurance companies that you could work with. Most of the plans are something you can apply for over the phone, without ever having to speak to a salesperson face-to-face.

As I write this article the amount of coverage you can purchase from these companies range from $5,000 death benefit (as a minimum) and goes upward to $3,999,999 as a maximum.

The length you can have this coverage ranges from 10 years to life (or age 100). So when I say you have options, you really do! It’s always best to speak to a guaranteed issue life insurance broker as these stats and options might change by the time you read this article.

 

Option 2 – Type 1 diabetic who has been declined for coverage by another insurance company

It’s hard to hear, but this where your options become limited. If you have been declined in the past 24 months you only have a few options available. Your amount of coverage might be limited to a lesser amount and you will likely have to purchase a policy that has a waiting period.

“Wait period: Typically the first 2 years of owning your life insurance policy is considered the waiting period. During this time, if you the life insured were to pass away, your beneficiary would receive 100% of what you put into the policy (your premiums), not the full death benefit. After the 2 year wait period is satisfied the full death benefit would be paid out if the life insured were to pass away.” 

 

It’s worth noting, that the amount of time since you were declined is a factor. For example, if you were declined for life insurance 5 years ago and have a medical track record with 5 years of good health you will have many more options than someone who was declined 6  months go.

Regardless, what many people do is focus on what’s important. And for many Canadians, it’s making sure that there is some money coming to their loved ones. Type 1 diabetes is one of those cases where we have a pretty good grip on it.

Yes, you will have to take needles however, it’s not as life-threatening as it once was. This is why purchasing guaranteed coverage (even with a waiting period) is a better option than leaving your funeral costs, medical bills, or other debts to your loved ones.

To find out how you can get a FREE quote for life insurance companies that work with people who have Type 1 diabetes.