Wawanesa Life Insurance Review

Wawanesa life insurance review

One of the lesser-known life insurance companies out there would be Wawanesa Insurance. However, because they don’t have the same reach a Manu Life or Canada Life has they offer some very advantageous features.

The first is the price. When it comes to getting a Term Life Insurance quote, Wawanesa is one of the most affordable companies (for Many different age groups). When you work with smaller insurance companies often they are going to price their products lower than many of their competitors in order to entice potential customers to work with them. Along with this, Wawanesa does NOT charge a policy fee. Most companies will charge a policy fee of around $4 to manage the policy.

Wawanesa also offers multiple preferred rates. Preferred rates are rates reserved for people who are in very good health. This simply means you will pay less than the average person who purchases life insurance from them. Although preferred rates are not guaranteed because they offer multiple preferred rates means they end up giving better rates more often than some of the other insurance companies.

Also with Wawanesa, you are able to layer their term converse. So if you need $500,000 of term 20 and $150,000 of term 10 you can do so. This is important if you have multiple forms of debt you are paying off. Maybe a $500,000 mortgage and $150,000 of debt from student kind and car loans.

Along with this most of their products are lifelong and renewable.

The last point is if you are under the age of 45 you could purchase up to $450,000 of coverage without any medical. Because COVID 19 – more and more Canadians are looking for coverage without having to do blood work or urine tests and Wawanesa is very competitive here.

One to the downside of work thing with smaller companies. The first being the product line up. You won’t find a robust product like up from a company this size. Their permanent product is available however it won’t be as Lucrative as other companies. So if you are looking for permanent products other companies may be a better option.

The last disadvantage comes down to the application. There are no electronic applications. So all applications will need to be done by face to face paper applications. With this, the underwriting period will take longer than the average company. However, this is the price you pay in order to pay a lower price.

In short, Wawanesa is a good company for term coverage. If you are price conscious and want the best rate Wawanesa is a good company to review before making your decision. However, if you are focused on a permanent product it’s not going to be the best coverage for you.

Let us know what you thought about our review and if you have any questions feel free to reach out. We are happy to help.

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What is Permanent Life Insurance?

Permanent Life Insurance is designed to be there whenever your time is up.

Permanent life insurance products, although more expensive offer level costs for as long as you own the policy.

Some permanent products also over what’s called a “cash surrender value”. Which is like a forced savings account. Simply by paying your premium, your cash surrender value will grow over time, which you can access at any time TAX-FREE.

Types of Permanent Life Insurance

Term insurance typically comes in:

Term to 100
Whole Life Insurance
Universal Life insurance

Term to 100 is easiest to understand. You have a specified amount of coverage (let’s say $1,000,000) with level cost so you never have to worry about increased rates. What you purchase is what you get and it lasts to age 100.

The second type of permanent life insurance is whole life insurance. Just like Term to 100, whole life has a level cost to own this type of policy. The difference is whole life insurance has a cash surrender value (CSV). CSV is a cash account that increases guaranteed over time and is an asset you have access to while you are alive.

The last is Universal Life which has many options available, these policies can be adjusted (to some degree) to benefit the client. They have a cash value to them as well, the difference Universal Life cans a variable to their investment vehicles, which means you could make more money, or you could lose money, depending on how the investment performs.

Who Has The Best Permanent Life Insurance:

When buying whole life insurance there are always a few factors that come in to play to which company has the best term insurance.

Your age
The Coverage amount
The length of coverage
Health
If you want a policy that can be converted into a permanent insurance coverage The companies performance (potentially)

In short, no one carrier is the best. It becomes dependent on your situation. Line up your insurance needs with the right carrier.

For help on finding the best coverage for you click the link HERE for your FREE Quote and we would be happy to help!

Whole Life vs Term Life Insurance

So often I get asked Whole Life vs Term Insurance, which is best? The answer is BOTH. But, you need to learn which is right, in which situation. Let’s break this down for you in an easy to understand way.

The best way to look at whole life insurance or term insurance is this;

“Think of term insurance is like renting an apartment, when whole life insurance is like owning a house”

Term Insurance

Term insurance (like renting) is the most affordable option. And it’s great for people who know they do not want coverage forever. The benefits of term insurance are

1. Cost – Most affordable option of life insurance

2. Coverage – How much protection your loved ones receive if you were to pass away.

3. Term -typically range from 10, 20, 30 years. This means your cost to own and the coverage about will not change for the length of the term.

At some point, if you stop paying and have not filed a claim, you walk away from your policy with nothing to show. Kinda like renting an apartment. All your rent cheques were paid, but you don’t have anything to show for it.

For more information on Term, you can read our article by CLICKING HERE. Or check out our buyers guide HERE.

Whole Life Insurance

Whole life insurance is more like owning a house then renting an apartment. This is a little more expensive but will give you these benefits:

1. Level cost – Cost to own this coverage will stay level forever. Never increase, some plans will allow you to pay for 10-20 years after which you can stop paying and own the policy. This is similar to your mortgage, eventually, you pay off your mortgage and you own it.

2. Level or increasing benefits. Like your property increases in value, so does some life insurance plans. With whole life insurance specifically, your plan will increase at a GUARANTEED rate, without ever decreasing.

3. Cash value – yes these policies can make you some money that you can access while you are alive. This is called a cash surrender value. The cash surrender value increases year over year at a minimum rate. This can be used by you for any reason.

For more information on Whole life insurance CLICK HERE to reach more.

So this often leads to which one for you?

Well, if you are looking to cover something temporarily. Like a mortgage, you hope to pay off one day, a business loan or just coverage until your children are grown and out of the house, term insurance might be your best bet.

If you prefer to have something regardless when you pass away whole life might be a better fit. It’s always best to meet with an advisor and figure out which is best for you.

Our last pro tip is that you can mix and match. Some people will purchase a base of whole life and layer term on top.

Category: Whole Life Insurance