Have questions? Below are the most frequently asked questions I get. However, if you don't see the answer you're looking for, please contact me.
We have an online calculator that makes this process easy right here.
The formula breaks down as, Existing Assets, (including all the life insurance that's currently in-force) minus Current Liabilities and Income Replacement Needs, equals The Amount of Insurance Needed for Adequate Coverage.
So long as the information on the initial application is correct there should be no time limit on collecting the claim. The insurance company will need a death certificate and the beneficiary(s) will need to sign a claimants statement.
Yes, there are an increasing number of non-medical life insurance providers in Canada. The two types of non-medical life insurance policies are, Simplified Issue coverage and Guaranteed Issue coverage.
Life insurance can be used for a number of reasons. Below is a sampling of six of these, but there are many more:
- Income Replacement
- Paying off a mortgage or a line of credit
- Final Expenses
- Emergency Fund
- Money used to fund your child's education
- Estate preservation and creation. (Life insurance is seen by many as an unselfish act because the money is not used for the insured, just their loved ones.)
Term insurance policies cover the insured for a stated term. The most common type of term policies are Term 10 and Term 20 policies. For example, on these plans the premiums are fixed for 10 years or 20 years and they rise substantially as the insured ages. Most Term policies are renewable and convertible, meaning the coverage can be renewed and/or converted to a permanent plan without a medical.
Yes, life insurance is available to people who are sick. Depending on the type of illness, the insured may still qualify for traditional life insurance plans that require medical tests and health questions. Otherwise, non-medical life insurance plans fall in the two categories mentioned above: Simplified Issue insurance (where there are no medical tests and three to 12 health questions) or Guaranteed Issue coverage (where there are no medical tests and no health questions).
Generally speaking, traditional life insurance offers a more affordable life insurance plan than Simplified or Guaranteed Issue coverage. Most Guaranteed Issue policies also have a two-year waiting period on the death-benefit, so if the insured dies in the first two years, the plans payout is limited to a return-of-premium plus interest.
Simplified Issue plan coverage can often start from day one, and the face amounts, along with the premiums, are lower than those of Guaranteed Issue life insurance. Guaranteed issue plans have higher premiums and the death benefit is often limited to a return of premium, plus interest for all non-accidental deaths in the first two years.
Life insurance policies generally have a two-year contestability period, which means the insurance company can contest the claim for the first two policy years if there is misrepresentation on the application. The insurance company can also contest claims for the life of the policy in the event of fraud.
Greg Brown is very active all throughout the claims paying process. He walks the claimant through any necessary paperwork and follow-up with the insurance carrier to make sure the process is as seamless and as trouble free as possible.
Generally, we don't recommend it. Most online life insurance providers offer their own proprietary product. Whereas, an independent broker offers insurance from a variety of carriers. Life insurance can be complicated and can play a huge role in your family's financial future. We believe that working with an honest and reliable independent broker will ensure you make the right decision.
Term insurance premiums start off low, but increase as the insured ages. Term insurance policies do not have a cash value. Whole Life insurance policies have a higher initial premium, but the coverage is level throughout the insured's lifetime. Whole Life plans can often be paid-up in a limited number of years and have a built-in cash value.
Universal Life insurance is an unbundled form of Permanent Life insurance, which means the life insurance and the investment component are separate. Most insurance companies allow the insured to choose from a wide variety of investment options and the investments can grow on a tax-sheltered basis.
Life insurance death-benefits are tax-free. the premiums on life insurance policies are generally paid with after-tax dollars, rather than pre-tax dollars. However, with Permanent Life insurance policies, there is cash value that grows (within the tax exempt limits of Canada) on a tax-sheltered basis. This money can then be used to offset future premiums. The net-effect premiums are then once again being paid with pre-tax dollars, rather than after tax dollars.
Most Term life insurance policies do not have a cash value. You can only borrow against the cash value of a policy you can not borrow against the death benefit.
The one exception is most life insurance companies will allow the insured to borrow against a death benefit if the insured is diagnosed with a terminal illness i.e. less than 1 year to live.