Friday, September 18, 2009
Canadian Tire Term Life Insurance: Is It As Favorable As It Seems To Be?
You many believe that Canadian Tire is firm that deals with furniture, tools and outdoor living, but it is life insurance. The home hardware company adjusted their life insurance policy and came up with a new plan. This plan is underwritten by Canada Life and subject to a new marketing drive. Analyzed next to an individual term life policy this plan isn’t necessarily up to scratch. Applying for this policy is very easy. You have the choice of applying online, by phone or mail. You will be have to fill in seven health questions and you will be expected to fill them all in. You may find you have to provide more facts or be subject to a nursing visit if any of the questions are answered yes to. The fees stay the same for the first five years, after that the fees increase. The value of the plan is $250,000.
What's the trouble? This all looks great to me.
Now we need to demonstrate to you the contrast between this type of plan and a Canada Life individual term life policy. If we examine a 40 year old male smoker. On the Canada Life policy the payments are $40 lower. The Canada Life policies are greatly lower. An individual policy offers more versatility and customization.The disadvantages to the Canadian Tire plan include limited benefits of only $250,000 and a term of no longer than 5 years. A Canadian Tire Plan also charges you PST. You can add riders to individual plans which give your extra benefits. Also you can connect it with another policy if you wish. Exclusive advise from your broker which leads to a policy worked on your individual lifestyle are another bonus rather than a standard group policy which is offered by the Canadian Tire Term Life Insurance plans. To recap: Although the Tire Plan looks great on paper your will be better off with a customized plan which suits your own lifestyle. To find out more about the Canadian Term Life Insurance, please refer to our more detailed article.
Photo source: kenyee