LSM insurance

Insuring Collectibles: Tips for Hobbyists and Professionals

2011-12-15T06:09:00.000-08:00

Precious collectibles might have a great value, but seldom get covered against all potential ways of destruction. A set of canvases with paintings, a coin collection, signed props of one’s most favourite music group, or rare and foreign goblin merchandise from a movie are but a few examples of valuable things that people like to collect.

Whether the core goal of your collecting is passion or a means of investment, it is wise to have your precious collection insured. Granted, the cash you receive will not make up for the enthusiasm you have invested, but it might at least allow you to start de novo. Learn more from life insurance specialist Lorne S. Marr...

Specific Insurance Coverage

Clients must take into consideration that this underwriting follows different principles than insuring other types of property. Conventional kinds of property insurance as a rule only cover the quantifiable value of the insured item. A stolen flat-screen TV can be replaced by a new one and a flooded hard-wood parquets can be removed and re-laid. Such things are almost always easy to replace — an exceptional vase or an inherited signed photograph of one’s favourite talented opera singer aren’t.

For that reason, pricey collectibles have to be considered and insured on their own. You can approach several insurance companies that include collectibles insurance in their portfolio in Canada.

Estimating the Price

Plenty of clients imagine that the collectible items must be valued by a specialist before it is insured. This is not unavoidably the case. Official appraisers have to be rewarded for their statements, which would make frequent evaluations unworkable.

Even still, you should be able to justify the benefit sum you choose. Correct appraisal may ensure your monthly or yearly insurance fees are efficient. In addition, it will also expedite the claims filed that may come later on To rephrase, if you inflate the value of your collection, you are risking that the heightened insurance fees will never actually pay off for you.

There are abundant guides for accurate self-valuation of a wide range of collectibles. Delve into the ways to buy and sell your type of collectibles and/or discuss with other seasoned collectors to begin building the bigger picture.

Risks in the Terms

If you ever wish to take out insurance on your special collection, check out the plan that covers ‘all risks.’ As well as the normal dangers of robbery, flood, or fire,, an ‘all-risk’ plan will cover natural wear and tear, damage or destruction in war, and even inexplicable vanishing.

What is more, you will likely be able to include new items in your coverage easily. If you are greatly invested in collecting, contact your insurance provider before you pick the item up to bring it home, so you are covered on the way!

Documentation

More critical than a costly appraisal is maintaining a detailed inventory of your items and any receipts from the purchases, sales, and exchangesof your pieces where feasible. Take photos or other visual evidence of all of your revered collectibles. Such documentation will likely help abridge any claiming process if indeed you misplace part or all of your belongings.

Funny Examples of Collectibles Insurance

Clients often generate uncanny accounts of their collections’ loss or destruction. A tiny bit of advice: please do not cry over your valuable images or show them off to visitors who are allergic to your pets. Pets in general often devour pieces of puzzles and wet paintings. Some collectors like to drive with part of their collection placed on their car’s roof, or dare upsetting their less enthused girlfriends and wives, who then frequently tend remove the prized possessions.

If you want to be on the safe side regarding collectibles insurance, please locate a knowledgeable specialist insurance broker or financial advisor in your area.

Claiming an Insurance Coverage in Canada

2011-12-01T01:41:00.000-08:00

When people think about life insurance, they often ask “What legal consequences does passing have?” and, “How do the beneficiaries get hold of the insurance coverage sum?” Filling out paperwork is definitely not something you would seek when you just lost a loved one. Therefore, Hence, LSM Insurance do our best to reduce the hassle of the claiming process for you as much as possible.

In order to begin the claims process, one should contact the life insurance company and also one’s life insurance broker or agent. This will start the claim process.

Consider that the life insurance carrier will request a death certificate. One can be obtained from the funeral home. They will also require the beneficiaries to deliver a claimant form which spells out some information about the death of the insured person. These would namely be the time of death, the cause of death, and all the personal information of the claimant or claimants. After signing and filing this document, the life insurance carrier may verify with the client’s doctor some of the information avowed in the initial request. It is important to make clear that should there be many claimants on a particular policy, each one of them will have to fill in his or her own claimant form.

Canadian life insurers are more likely to want to examine the cause of death if the claim took place within the initial two years of the insurance policy. The resolution methods and requirements do differ from company to company, so it is crucial that the claimant verifies this information with an insurance broker or the life insurer.

It is possible that the insured person have multiple insurance policies at the same time, obtained by way of multiple channels. Remember that insurance policies do not actually pay out lest someone files an application. For that reason, make sure that you take care to find out about the possible other life insurance policies. There could be more funds which you are entitled to apply for to which you may be oblivious. Life insurance is regularly presented to those applying for credit cards or lines of credit. Do not forget to contact your or your loved one’s insurance broker to assist you with making a claim if you have any worries about the procedures. Certainly research all potential kinds of life insurance coverage that your loved one may ever have taken on.

Compiled by Lorne Marr, an insurance expert and he is also an authority on Canadian no-medical life insurance. Lorne is familiar with more than a dozen Canadian life insurance companies.

Low Interest Rates in Life Insurance

2011-11-16T09:22:00.000-08:00

In order to encourage growth throughout the universal financial downturn, overnight lending rate of Bank of Canada has stayed at one per cent since September 2010 and is most likely to linger at this figure in the foreseeable time horizon.

The United States, China and emerging economies will grow slower than previously thought. Unfortunately, the European Union is falling into a relatively mild decline. Nobody said, however, that the developments cannot in fact be less favourable.

All this is bad news for Canada’s insurers. Their income depend on interest incurred in financial investments.

Proceeds from life insurance premiums are usually put into bonds—a relatively very safe investment vehicle—and remain there to generate interest. This interest can cover the costs of insurance claims, overhead and other miscellaneous obligations. Interest revenue left over will become insurance company profits.

Unprecedentedly low rates have put the screws to profitability for of Canadian insurers. Many insurers are trying to balance out these rates by inflating the price of their permanent life insurance policies. Manulife, Empire Life, Industrial Alliance, Canada Life, and BMO Insurance have all bumped up the fees on their level-cost universal life plans. Manulife has taken even more drastic measures – they decided to remove this type of coverage from their permanent life offering altogether. What’s more, additional players are likely to do the same in the foreseeable future.

The outlooks are ugly, seeing as central banks in the US and Canada are saying that interest rates are going to remain low for the foreseeable future.

One positive outcome of this situation is that a few smaller Canadian insurers try to attract new customers by freezing their permanent plan rates.

Lorne Marr, author, is an insurance specialist and an authority on no medical life insurance. Lorne works with over a dozen Canadian life insurers.

What’s the News with Critical Illness Insurance?

2011-10-09T04:12:00.000-07:00

Critical illness is nothing that we’d like to face at any point in our lives. Because the possibility of developing an illness can never be eradicated entirely, it is important that one takes precautions.

Only then, one is able to make key financial decisions. Taking on the suitable insurance plan now – while you are healthy – is one of the ways to make up for some of the unexpected costs that might be brought about by a critical illness. And that is the reason why there are half a million such policies active in Canada.

Life-and-death conditions are but a slice of the story. Even if one exceeds the originally estimated elimination period, the insurance company may take time to review the claim. One of the measures taken, for example, is to validate whether the insured knew of the illness at the time of application.

The latest news is that a few Critical Illness insurers in Canada bring forward an automatic increase benefit rider. This rider works to augment the policy’s critical illness insurance benefit at scheduled intervals. These automatic increases also mean that the monthly premiums in accordance with the benefit increase.

RBC Insurance, for one, offers its clients a biannual Automatic Increase Benefit Rider. This rider provides the insured with an opportunity to add to her or his benefit every second insurance policy anniversary until the rider terminates.

What is more, during the initial ten years of the policy, the insured person can boost their benefit amount without having to provide additional proof of his or her insurability. The amount is going to be equal to 20% of the originally agreed-upon policy benefit. This means the actual coverage can increase by 100% this way.

One caveat: RBC automatic increases may not be deferred or missed. In case the customer declines an increase, the add-on automatically terminates. Though, previous increases and corresponding increased premiums will still be in effect.

Speaking of inter-insurer variances Canada Life draws a distinction between cigar and pipe smokers in that they classify cigar and pipe smokers as if they were non-smokers for the purposes of critical illness and disability plans. This fact has a great potential to cut down the total price.

Check out for recommended reading about Critical Illness insurance: How Equitable Life Insurance reworked Critical Illness Plan for kids.

Various Insurance Policies Clarified

2011-08-10T08:17:00.000-07:00

Today, we will take a peek at several types of insurance products offered to all of us that many are oblivious to. My short list should give you an overview of what is available out there.

American Insurance Company Building in Newark, New Jersey by wallyg

Mortgage Life Insurance

Kicking off with what is a terrible product: Mortgage life insurance. This idea obliges you to pay for coverage that weakens as you go. This means that the more cash you pay in, the more risk remains uncovered. This is such a bad deal that no one should ever agree to, since there are dramatically better means of insuring the household to offset the risk of default.

Bump Up Remuneration using Group Insurance

Employee benefits have the potential to engage HR managers for a long time. There are simply countless combinations of various perks and it is very hard to pick the ones your people will enjoy most. To top it off, the costs of employee benefits have been making it crucial that companies’ choices are as financially efficient as possible.

When you have acquainted yourself with the available combinations, look for perks your employees will prefer. Be open with them and give them several options to select from in a simple survey or take a look at their claims history and search for major examples of behaviour. Record and consult your approach and progress with an expert group specialist to prevent ordinary mistakes and boost the efficacy of the process.

No-medical Life Insurance

Guaranteed issue life insurance is a specific category of life insurance that is available to almost any applicant regardless of her or his medical history. This includes patients with lethal illnesses, patients with AIDS, and patients with unhealthy habits, such as smoking or drug abuse.

Insurance companies will accept almost anyone and they will ask only a few or no medical questions during the application process. Because this practice exposes insurers to much greater risk, the cost will show this and will be considerably more costly than with traditional life insurance plans. Also, the maximum coverage sum will typically be topping at several thousand dollars, whereas traditional agreements may easily reach anywhere up to millions of dollars. In addition no medical and simplified issue life insurance plans will contain exclusions in order to protect the underwriter from “abuse” by people who are extremely close to death. These are all sacrifices that you will have to make if you do not qualify for mainstream life insurance plans but want to be covered to a certain extent.

Life Insurance to Compensate for Detrimental Impact of Earthquakes

2011-05-06T03:14:00.000-07:00

In the aftermath of the earthquake near the Japanese islands and the devastation it brought into the country of the rising sun, we looked into the exposure of Canadians to earthquakes and the ways we can protect ourselves. The events in Japan make us feel very strongly for survivors and victims alike.

Quakes are lethal and emotionally disturbing. This is most certainly the case in Japan, where the Sendai quake registered a 9.0 reading on the Richter scale and thus was the 5^th strongest quake recorded in the history. The magnitude, however, is not really the most important either, because even a less momentous earthquake originating within an inhabited area may come to be more serious than a forceful occurrence happening in the middle of the Pacific. The last earthquake in Canada could be noticed not that long ago, taking place just a few months ago on June 23^rd, 2010 between Québec and Ontario. The thing nobody wants to worry about after living through something like an earthquake is paying for picking up the shattered pieces – this is where life insurance coverage can come in very handy.

We enquired five chief Canadian insurance companies and all of these will cover death in the event of a disaster. The insured, however, mustn’t be hit by the disaster while visiting specifically prohibited locations.

The prevalence of natural disasters of huge significance steadily rises. It was hardly a few weeks prior to the quake in Sendai that swaths of Australia were under water.

While no more than 75,000 lives were lost yearly during the 1990s, compared to 86,328 each year during the eighties, an average of 211 million people were directly affected by natural disaster in the 90s – up from 147 million in the eighties.

The number of natural disasters has tripled since the 60s and, even worse, the monetary effect has amplified by a factor of nine in that same time.

Death due to an earthquake is increasingly possible all the time, so in Canada, life insurance that helps when someone dies in an earthquake is only a natural choice.

Cremation as an Alternative to Burial and Your Life Insurance Coverage

2011-05-03T04:42:00.000-07:00

The cost of cremation is by far smaller than that of a burial in Canada. Nonetheless, the cost of cremation still vary widely. Much depends on the complexity of the cremation ceremony that you select, the region you are home in, and the funeral provider that you use. If you have been hesitant to ask thus far, according to a article on cremation, a direct cremation normally comes at about $700. With an obit, holy service, transportation and catering, decorations and viewing, the total expense may climb up to $2,700. Although much cheaper than the burials worth thousands of dollars, this is still a significant item in the budgets of most of us.

The Cremation Association of North America (CANA) claims that the ratio of cremations to traditional funerals in Canada, from about 5.89% in the seventies to over 68% in 2009. An article on the funeral “business” from Sun Media asserts that last year, cremation amounted to a slight majority of all funerals in Canada. The climbing "popularity" of incineration in the recent years can be credited to one thing – inexpensiveness.

LSM Insurance is aware that many of us are interested in substitutes of the traditional funeral to save some money. In Canada, life insurance can be a very effective strategy for doing away with the wide range of outlays associated with cremation.

Life insurance proceeds are paid out tax-free and, in most cases, the coverage can be taken out for a quite reasonable monthly fee. Life insurance policies usually fall under one of the following three groups:

Traditional Life Insurance, where the client is required to subject her- or himself to a medical check-up and answer a comprehensive list of health questions.
Simplified Issue Life Insurance that does not require medical tests and the insured has to complete anywhere from 3-twelve health-related questions.
Guaranteed Issue Life Insurancewithout health check-ups and the insured needen’t complete any questions. Guaranteed Issue Life Insurance is also referred to as No Medical Life Insurance

One trouble with guaranteed issue as mentioned above (and certain simplified issue insurance plans) is the contractual limitation of the payout to a return-of-premium and applicable interest in case the insured passes away within the first two years due to non-accidental causes. This safeguard is in place to prevent insurance policies from becoming a speculative form of investment for otherwise uninsurable applicants.

RBC Insurance's "Business Insurance Rider"

2011-04-16T09:51:00.000-07:00

Insurance policies often bear a resemblance to a car purchase. As soon as you decide for the fundamental insurance policy, there is a large array of alternatives, riders and tweaks that you may potentially need. They can add to your policy and help account for your individual risks easily. Some optional riders are more often applied than others, but all may be beneficial to you.

RBC Insurance now offers a Business Insurance Option, which is basically akin to the Future Income Option which applies to its disability insurance policy.

The business insurance option is a policy rider attachable to RBC’s Disability Insurance. The rider is an affordable one guarantees for the insured an opportunity to add additional protection without having to undergo a medical examination. This is good in the event that the value of their business increases.

Akin to the Future Income Option, the Business Insurance Option guarantees that the owners are incontestably insurable in the future. If one of the partners was diagnosed with a health issue (such as diabetes) but, at the same time, their company grew in its worth. Purchasing extra coverage down the road could very well become an issue in a traditional instance. However, thanks to the Business Insurance Option, the business owner can compound their personal income coverage once every two years from the policy’s effective date. This date—often being the same as the beginning date of the rider—is the so-called “option date”.

These are the specifics of this particular disability rider:

The highest face value of the newly acquired coverage is eighteen per cent of the rider figure at a time.
Financial data attesting the client’s claim to purchase additional coverage is required, but the insured won’t need to provide additional health-related information when these option dates are applied.
The additional premium is, however, calculated based on the insured’s current age, not his or her original application age.
The added option income falls under a matching type of coverage and agreement terms as those of underlying insurance plan.

Learn about more special policy riders and options. Stay updated about the latest insurance news, check out the LSM Insurance online portal.

Why Would You Purchase a Group Benefit Policy

2011-03-20T03:25:00.000-07:00

Mixing an attractive benefit assortment for your people may easily become an overwhelming mission. The balance between offering employees fair benefits, appealing accomplished workers and limiting expenses is a important factor which a business wants to keep in check.

To start, we need to describe what business group benefit insurance brings to you and your people: it spreads the monetary risk of incurring healthcare-related expenditures amongst numerous members of staff, all under a lone plan. Every person then pays a fraction of the plan premium.

When an employer has taken out a Group Benefits Plan, anybody of the covered group who becomes ill or requires services is adequately recompensed by the insurance policy as laid out in the contract. Employees’ family members are included within the plan as per the contract.

Such are the benefits of a Group Benefit Policy for the employees:

It gives you an edge in the job market. You appeal to and retain quality workers, which helps cut back on expenses resulting from high employee turnover. Your worker will certainly feel well taken care of.
You get health coverage at a an advantageous price. Group Plans do not discriminate and are not anti-selective, covering everybody with identical conditions.
Group benefits are a cost-effective way of protecting your employees. Such treatment brings about heightened morale and thus heightened productivity and work satisfaction.
Group Plans are tax-effective. The majority of premiums that you pay are tax-deductible as a business expense.

How Does Cosmetic Treatment Influence Your Insurability

2011-03-12T04:06:00.000-08:00

As stated by the International Society of Aesthetic Plastic Surgery, the number of cosmetic surgeries in this Country is the fifteenth highest in the world, with 108,758 procedures carried out per year. Especially contrasted with the rather small population of Canada, this figure is really fairly high.

The surgery ladder is headed by the US, which are followed by Brazil, China, India and Mexico. The developing countries increasingly offer advantageous price for the quality of service.

To help our clients understand the impact of invasive cosmetic and/or plastic procedures on people’s ability to purchase proper insurance coverage, LSM Insurance carried out an analysis among several large life insurance companies. Are these insurees forced to look for no medical life insurance? The insurance team queried five major Canadian insurers. We might have expected that none of the insurers would give any simple resolutions, since all traditional life insurance arrangements must be underwritten fully.

Even those insurers who did talk declared that prospective clients who are looking to undergo cosmetic and plastic procedure like breast enlargement, lip enhancement, or Botulinum toxin (Botox) may qualify for standard policy pricing. However, these procedures are considered just as other operations; the life insurer may postpone making a decision for a pending surgery.Normally, the evaluation will be undertaken only after the actual operation. This means that you should basically—when possible—wait with surgery planning until after their agreement has been signed.

Surgical procedures tied with other nervous or mental maladies may carry with themselves additional hazard and could cause the client to receive a rated insurance plan premium or cause him or her to be turned down completely.

Lorne Marr, author, is an independent insurance broker and an expert on no medical life insurance. Lorne has worked in this industry for nearly two decades. His LSM Insurance brokerage firm works with more than 13 Canadian life insurers, such as Standard Life Assurance or Manulife Financial Life Insurance.

Can Cocaine Users Get Traditional Life Insurance?

2011-02-25T01:17:00.000-08:00

According to the most recent data (2009) from the Canadian Alcohol and Drug Use Monitoring Survey, cocaine and its derivatives were the most popular drugs used by those fifteen years or older, after marijuana.

Whereas cannabis was used by 10.6% of us during the year of the survey, roughly 1.2% of people had experience with cocaine and crack. An average of 11% of Canadians experienced an unlawful drug in the same interval. Among these drugs are heroin, ecstasy, cocaine, speed, hallucinogens (excluding salvia) and, of course, cannabis and/or marijuana. 17.7% of men and 7.6% of women had tried drugs, with youth reaching 27.3%.

Since 2004, Canadians have been abusing banned drugs less and less. This leaves plenty of former users and addicts who will want to purchase life insurance one day.

Quite understandably, insurers in Canada do not really particularly favour the use of cocaine or of other drugs. Current cocaine use, or other forms of recreational drugs, will earn the applicant an instantaneous rejection. This is simply because unlawful drug use is a pre-existing medical condition. It should be noted, however, that drug users may qualify for simplified issue policies. This coverage is not subject to any medical tests and often does not have a drug related question.

We inquired four leading life insurers and scrutinized how their underwriting guidelines look at ecstasy, heroin and cocaine. Here is what we found:

Ongoing addiction to heroin, cocaine or ecstasy will earn the applicant a decline on the part of the insurance company.
If the applicant has not been involved with drugs for more than 4 years, the insurer’s quote will in all probability lead to a policy rating if the applicant is otherwise in good shape. A policy rating means for the insured that he or she pays an additional monthly premium on his or her insurance plan due to the larger risk to the life insurance company. Plan ratings are generally in a multiple and can be anywhere from 1.5x to 5x the insurer’s usual cost.
If the client has not been abusing drugs for over 4 years, the client may qualify for standard premiums (i.e. without policy rating). Of course, this only works if there are no underlying health and lifestyle issues.

An insurance advisor with enough experience in this specific area can help you acquire quality life insurance for a reasonable price.

Lorne S. Marr, author, is an insurance specialist and an expert on hard-to-insure clients. Lorne works with over a dozen Canadian insurers, such as London Life Insurance Company or London Life Insurance Company.

Life Insurance and a Cigar Smoker

2011-02-18T04:10:00.000-08:00

Fancy cigars? Enjoying the occasional stogy might cost you much more than the $150 you paid for that pack of White Owls. That is, it could drown a fortune in extra life insurance premiums.

What does one do to reduce the impact of the habit of smoking cigars on the premiums? Well, most insurers allow you to have a cigar from time to time – usually once per month. Canada Life, for that matter, which tolerates one cigar as often as each week. Unity Life, on the other hand, offers a special cigar rate.

If you are , refrain from smoking cigars for at least a week so there is no lingering cotinine—a nicotine metabolite—in your body. The levels of cotinine in a person is used to measure one’s inhalation of tobacco smoke. Nicotine is “digested” by the body into cotinine, and that has a half-life of approximately twenty hours. This means that the substance’s levels will halve every twenty hours. Past the initial 20 hours, cotinine levels will sink to half, after the next 20 hours to quarter, etc. For these reasons, it is safe to expect any dose of cotinine to be metabolized untraceable after four days.

Insurance premiums for cigar smokers differ sharply from one company to another – and can quite possibly make up $40,000 over the duration of the policy.

As general advice, it is a very good idea to be truthful when applying for coverage. Until a policy has been in force for twenty-four months, the insurer has the right to contest it for misinterpretation or omission of a material detail. The ‘incontestability period’ varies depending on the life insurance company.

Smokers in general are best attended to by a knowledgeable independent broker who understands the underwriting guidelines of a range of insurance companies and keeps up-to-date on all amendments thereto. The same holds true for anyone with pre-existing medical conditions.

Written by L. Marr, Toronto insurance broker and financial advisor. Lorne has been working in life insurance in Canada for over a dozen years.

January round-up

2011-02-08T06:17:00.000-08:00

Welcome. Traditional selection of the best articles is ready. January brought us several interesting articles. The main topic was stroke and life insurance.

Couple of articles, like this insurance article on squidoo, or this stroke-related on active rain talked about your chances to purchase life insurance policy after suffering a stroke. This one on hubpages dealt with stroke insurance and patients.

What Is the Tactic for Getting Life Insurance after You Survived a Stroke?

2011-01-04T14:34:00.000-08:00

Even if one survives a stroke, it does not yet disqualify her or him from obtaining a life insurance plan.

Stroke patients suffer either from anomalies in the way blood vessels supply nutrients to the brain tissue, or from dangerous blood leaks within their brain. Strokes can be slow, which are the cases when small volumes of blood leak into the tissue gradually. As the blood accumulates, it presses the brain tissue in the vicinity. In other cases, strokes can also come in the form of a burst vein which will release large quantities of blood into the cerebral tissue. Another type of stroke comes as the result of arterial embolism or thrombosis. In those cases a congested vein is unable to supply the brain with enough blood and renders it dead.

One way or another, the consequence is the loss of certain capacities in the patient. What is more, a stroke patient (whether or not one with milder or severe impact) is reckoned prone to suffering another stroke or to have impending health problems. Luckily, the patient is in many cases going to continue living his or her life without additional serious health problems, they usually cannot do without partial or constant attention and care from their family or professionals.

Does being a stroke patient change one's insurability? Must you worry?

A stroke has a definite impact on one's chances of obtaining life insurance. Traditional life insurance policies may be suitable depending on the scale of the stroke. In such cases, insurers will require details about the applicant's medical history, but particularly the description of the stroke, the age of the insured when the stroke occurred and any permanent cognitive or physical damage resulting from the stroke, such as difficulties with speaking and any medications applied to recover it.

Any of other related disorders that the applicant may have, namely diabetes or cholesterol, can also have an effect on a person's fitness for one policy or another. When a stroke is accompanied by but an average medical record, the patient will be much less likely to qualify for traditional life insurance policies.

Simplified Issue Non-medical Life Insurance products may be another option for stroke victims. Many simplified issue carriers including Canada Protection Plan and Assumption Life are ready to provide immediate insurance coverage to stroke victims provided they have had the stroke earlier than the span stipulated in the plan application form. This is typically somewhere around 24 or 36 months. It is vital to look at simplified issue alternatives prior to applying for traditional insurance because should the insured be declined from traditional insurance first, they may suddenly lose eligibility for simplified issue insurance.

LSM Insurance specializes in locating the best deals for hard-to-insure clients and clients with special conditions or lifestyle.

December round-up

2011-01-03T04:39:00.000-08:00

Dear visitors, let me introduce some of the interesting articles, we created during December 2010.

BMO Life Assurance Company: A.M. Best Revised Ratings The topic is also mentioned on multiply.

Did you know insurers are interested in climate research? If not, read it in Insurers for Climate Research.

Meanwhile, Tax Saving Tips and Canadian insurance companies - 2 are waiting on Hubpages.

LSM Insurance Brokers Are Comparably Better for You than the Others, Did You Know?

2011-01-01T15:08:00.000-08:00

LSM guarantees to its clients that our brokers are serving its clients better than other Canadian insurance brokers.

The Globe and Mail exposed the hidden world of bonus and vacation structures which are aimed to push brokers to sell policies of the insurers that virtually employ them. These practices are most likely to take place when a broker is generally dependent on doing business with a single insurance company. In most cases, such incentives mean brokers are not exactly acting in their clients' best interest as they constrain their clients only to insurance plans from those insurance companies that are keen to offer the most attractive bonuses -- not the best plan that suits the client's needs and economic situation. The article lists the following:

Instead of searching the marketplace to locate the best coverage, and the most favourable terms, for the clients sitting across from them, many autonomous brokers and agents steer all their business to a minimal number of insurance companies, say insurance executives in an interview for The Globe. They favour the ones that reimburse them most generously in commissions, bonuses and perks, such as those all-expenses-paid trips.

Unfortunately, this may only too often be true of most brokers operating in Canada, LSM Insurance has throughout its history operated from a higher moral level. Our brokers expect very comparable bonuses from every insurer with whom we work, so there is no motivation to prefer one carrier to another except our clients' best interests. Brokers who only work with a handful of carriers are more biased towards those particular companies. As client-oriented as we are, LSM is contracted with over 15 insurers.

LSM is perpetually in contact with all of those insurers. LSM finds itself very close to those underwriters to ensure we are qualified to pair every customer with the right insurance carrier for their unique situation. This philosophy adds up with LSM's one-of-a-kind specialization in those clients that are hard to insure (i.e. people with lifestyle or health issues which prevent them from qualifying for conventional insurance plans). That, in turn, has enabled LSM Insurance to eliminate the apparent conflict of interest affecting the rest of the insurance industry in Canada.

However, if scepticism still permeates your thoughts, check out our Testimonials Page featuring honest feedback from our clients. This neat assortment of opinions will give you a decent idea of the kind of service we have been providing to our clients over the many years we are in the insurance brokerage business. LSM also gives our clients the opportunity to put their destiny in their own hands using our many handy interactive utilities (such as our Needs Analysis Calculator and Internal Rate-of-Return Calculator), which add more precision to the buying process.

BMO Life: A.M. Best Credit Ratings

2010-12-22T04:43:00.000-08:00

Lately, there has been more good news for an insurance company among the many grim economic articles as A.M. Best Co. did not change the financial strength evaluation of BMO Life Assurance Company (BMO Life), reinforcing the rating at an “A”, which stands for “Excellent”. Similarly, BMO Life’s issuer credit rating also remained at an “a”. Even better, the projections for BMO Life were assessed as stable, with regards to all the Company's reports and other information available on Bank of Montreal and BMO Life.

BMO Life is a subsidiary of Bank of Montreal (BMO). BMO Life is not the only insurer owned by BMO, but is a major one for that matter, serving specific subsets of the insurance market. Hence, analysts rely on BMO to support BMO Life in case of any contingent financial issues. During the recent financial crisis, BMO Life was significantly harmed in the instabilities within the highly competitive insurance marketplace and needs to recover from all the monetary and brand-esteem losses.

BMO offers a selection of insurance products, ranging from universal life through individual life insurance , term life, whole life, critical illness, guaranteed issue life insurance to structured settlements and annuities. Its policy assortment is quite specific and thus preferred by certain subsets of the clientele, which may be considered its individual advantage. BMO Life offers its plans mainly using an agent network originally established by AIG Life.

In 2009, Bank of Montreal (BMO) decided to take over AIG Life Insurance Company of Canada. The company was transformed into a new brand of BMO Life Assurance Company, but its business model remained chiefly intact. Financial analysts seem to have welcomed this acquisition well, since AIG Life/BMO Life from now on can count on a stable and large parent supporting it.

The BMO group has another life insurer: BMO Life Insurance. This entity is unconnected to BMO Life Assurance Company, has its own network of agents and history, but exists within the same family. Find more information on BMO Life Assurance Company on our website.

Insurance and the Climate

2010-12-21T08:24:00.000-08:00

“Since when do insurance companies worry about climate research?” you might ask. If so, you should ask RSA Insurance Group, a global insurer headquartered in the UK. RSA in Canada operates mainly in marine insurance, but the message their behaviour is demonstrating is will have significant effects across the whole insurance field, even for non-medical life insurance.

RSA recently announced an official alliance with the World Wildlife Fund world-wide. The mutual synergy upon which this relationship is based qualifies as both “the right thing” as well as a business interest. It is simply a win-win situation.

If anyone can actually express a climate change in probability figures, then it must be insurance analysts. However, insurers cannot always work out what lies ahead specifically enough. Following the floods and droughts around the world, insurance companies bumped into considerable claims and thus had to pay unexpected compensations on those of their insurance products that are linked with the state of temperature, weather, and climate. This signalled to them that they were unable to assess their products’ riskiness accurately. And risk being the elementary notion underlying the entire insurance business, something had to be changed.

Thus, this experience and the general involvement of RSA with marine insurance were what prompted RSA to look for information, opinions and support at WWF. They are interested in the developments of the global environment - those that WWF examines so intently. WWF performs numerous analyses in order to understand animals whose life is largely influenced by the smallest changes in the climate. Through helping WWF to do what they are best at, the RSA group will benefit from more trustworthy forecasts. Thus, the insurer will be able to ascertain its risk better, charge for its products more adequately and steer clear of disproportionate outlays.

Because the enhanced estimates should be publicly available, i.e., to every other insurer, the effect on competition between companies is going to be minimal. At most, more perfect competition will press down policy prices for insurees. On the other hand, wild species will welcome the partnership between RSA and WWF anyhow.

Lots of businesses are learning that an eco-conscious business model may not only save them substantial amounts of money, but also please their customers along with the public in one fell swoop. The spirit of this mind-set shift can be sensed around global enterprises such as Sony Corporation, which only uses recycled paper for all administrative work, PricewaterhouseCoopers, also contemplating a global change towards more sustainable offices, and Adobe winning awards for very small-footprint office buildings using modern technologies numerous times.

LSM Articles Selection

2010-12-13T04:39:00.000-08:00

LSM Insurance produces tonnes of great articles and we don't want them to be lost in the deep valleys of Web. Therefore, we prepared this list of the best insurance, financial and other articles from October and November.

Insurance Dividends
Can insurance bring any dividends? Few tips for investors.

Standard life insurance policy review

One of the popular life insurance policies on Canadian market. Is it worth the money?

Transamerica's credit rating

Closely followed case of Transamerica's ratings.

Great West Trial story

One of the biggest trials related to insurance in Canada reached its end.

European finances - one to rule them all

European financial system is undergoing major change.

The Future of Canadian Insurance Industry

We survived the crisis almost untouched. But what comes next?

Long Term Disability Insurance

What is it? How does it work? Let's learn something about long term care disability insurance policies

Insurance Companies Lobbying Against New IFRS

2010-11-03T09:05:00.000-07:00

During the summer, Canadian life insurance companies were lobbying the federal government to move the principles in their favour. In summary, insurance companies demanded an amendment of IFRS which our government is prepared to implement but wants to effect not before 2013.

The industry believes that the new rules will introduce big volatility to the c/e ratio in annual (quarterly) comparisons. The problem is, not only would this make period-to-period comparisons more challenging, but it would also stop comparisons to statements prepared under the previous rules.

The people at LSM Insurance think the latter is weedy defense though, as the the industry would most possibly be called for to make new calculations for previous few periods' results applying the new order precisely for the purposes of rational comparability, as is the case with most alternations of the standards. Nonetheless, a shift of rules will surely bring bigger amount of administrative expenses in the time of the change at the bottom end.

As to the volatility of capital ratios, the FP says that the the companies are pledging for a 2-tier accounting rules that permits capital to be counted based on a various pack of standards than the IFRS. This makes sense since the levels of capital backups are monitored and regulated by the Canadian regulatory body - OSFI. Should there be too big volatility of capital reserves, the insurance companies may be asked to re-check them more often which put off ideal capital management.

In serious situations, malnourished capital may push OSFI to consider an insurer bankrupt. Today, it is far from possible to find the exact effects of IFRS on c/e volatility, as the new rules are currently being developed by the International Accounting Standards Board (IASB). Nevertheless, the insurers are believing that 2-tier rules, which is in place in the Anglo-Saxon countries will erase any such worries.

An additional tool for overcoming future crises the insurance industry might use is embedded contingent capital mentioned in a previous article.

PS: Don't forget to check out our new website on no medical life insurance.

Boosted Ratings of Transamerica Life Canada

2010-10-04T07:02:00.000-07:00

As reported in the August Issue of the Insurance Journal, S&P recently improved its counter-party credit and financial strength ratings for Transamerica Life Canada from “BBB” to “BBB+.” The outlook as an insurance company is positive as of now.

Similarly, in July, AM Best changed Transamerica Life Canada to positive from stable and affirmed the financial strength rating of B++, which equates to “Good”. AM Best also reclassed the prospects to positive from negative and confirmed the insurer’s credit rating at BBB+. More good news for Transamerica clients and prospective customers, Transamerica Life has slashed its term plan prices from September 20.

To learn more about guaranteed issue life insurance, visit our specialized website.

Doctors Protest Against Mixed Martial Arts (MMA) in Ontario

2010-09-29T15:30:00.000-07:00

Mixed Martial Arts (MMA) is a sport with about a 100-year-long modern tradition. The rules of the fight allow a selection of techniques to take place in every match. Thus, martial artists with various skillsets are able to compete in the ring. MMA is a full-contact sport with roots with roots as far as the ancient Rome.

Lately, medical professionals had something to say about this on the Canadian Medical Association’s general annual meeting in Niagara Falls. The majority of the doctors voiced their belief that the sport should not be legal. They simply argue that MMA is a dangerous sport with a large probability of injuries – a lot more significant than in boxing for instance.

Another parallel institution which lately voiced worries regarding MMA was the British Medical Association . Since early 2009, they are actively campaigning against this sport in Britain (for more info read BMA’s entire statement here). They, too, argue that the sport often gets excessively brutal.

As explained by Dr. Ian Gillespie, the president of BCMA, “MMA fighting, like boxing, is distinct from many other sports in that the basic intent of the fighter is to cause harm in order to incapacitate his or her opponent.” He adds that the “various techniques […] aren’t limited to punching, and there may be the presence of fewer safety rules.”

WatchKalibRun.com is a portal reporting on MMA events and news. In an article on this topic, it expresses their own opinions on the arguments of the British Medical Association. They mention that any available data is extremely limited and link to an American study finding that injury and knock-out rates in Mixed Martial Arts are comparable to those of other such activities.

The Hamilton Spectator interviewed two experts from the field – a fighter and a coach – idea about the issue. Less efficient protective equipment which makes fighting more dangerous is a large concern. Also, the referees are less specific plus any regulations are looser overall. Unlike in box, the strikes are not aimed solely at the opponent’s head and the body in MMA, which will easily cause more kinds of injuries. To be fair, it may still make head injuries much less probable. Both experts are calling for a unification of procedures across Canada instead of keeping different regulations for each province.

Why do the Canadian doctors step up now? It is because only now (in August), Ontario province government finally agreed to legalize MMA in the province. Ultimate Fighting Championship (UFC) and Warrior One (W1) are the two largest organizations. They already have business strategies aiming to develop activities in lucrative locations in the province. Ontario Premier Mr. Dalton McGuinty finally stepped out of his comfort zone to sign the law, but wants close scrutiny of all events and all the rules, according to Toronto Sun.

Doctors are unhappy that there are seldom trained professionals at the matches. They say that even if there were, it would be against their essential principles for them to passively watch the ongoing injuries and just let them pass. Traditional martial artists are displeased that the sport is in its essence countering the original values of martial arts which are most importantly respect, discipline, self-control and courtesy.

As reported by CTV, Dr. Shelby Karpman warns that since MMA is already very popular, outlawing it would cause that the fights take place illegally. Also, health supervision would not be enforceable and thus the artists could count on substandard care, which translates into even more danger.

That said, it seems reasonable to conclude that if the sport cannot be banned, it should definitely be officially regulated and any rules should be obeyed without exceptions. This means that there should be reasonable medical authority present with appropriate competencies; licensing, insurance and preventive measures should be in place during every match.

As I am sure you are wondering: Extreme sports such as MMA are treated as a special case for life insurance. Not every company will want to sell you coverage if you perform this or a similar extreme sport, and those who will are going to ask a much higher price. The final price is going to depend on the nature of the sport you do. A fighter should pay utmost attention to any exclusions and caveats in the policy and should not sign up for any but licensed events. Illegal fighting may mar your chances of ever successfully making a claim on your policy.

However, life insurance is not going to suffice to cover all expenses associated with extreme sports. A fighter will most probably cause harm to his or her counterpart and that will make him or her responsible for the reimbursements. In addition to the host of the match, each fighter should have liability insurance of his or her own. As with life insurance, with liability insurance it holds true that the fight must be part of a licensed and supervised venue and is limited by any exclusions in the plan.

A Brief Overview of Canadian Long-term Care Insurance

2010-09-28T16:15:00.000-07:00

There may come a time in our later years when we simply are unable to live on our own. If you read the statistics, 50% of Canadians are expected to need long-term care after 75. With increased longevity and the aging of the population, it is advisable that we sort out these matters as soon as possible. In this article, we are going to give you an overview of long-term care insurance, as well as briefly describe policies from three different Canadian insurance companies to help you compare.

What is long-term care insurance?
If you can’t do at least two of the following six activities:

dressing,
eating,
toileting,
bathing,
maintaining continence,
and transferring (e.g. from a bed to a chair)

on your own (the exact activity list depending on your individual policy), then you qualify for your benefit from long-term care insurance. Your policy will then pay you the agreed tax-free benefit on a weekly basis to help you get suitable assistance.

Long-term care coverage helps protect the resources and health of not only you, but also your children who would have to invest extra resources to provide for your needs. Unlike in Life Insurance, Long-term Care plans do not normally prefer non-smokers, nor do they distinguish between females and males.

Read here if you want to find out more about long-term care insurance vocabulary and definitions.

How to choose your long-term care insurance policy?
What to ask about your long-term care insurance policy:
You should first check for any exceptions in the policy as to when and how you get to your benefit. Then, try to estimate how much your care may cost you and for how long. You may choose to opt for a policy delay (elimination period) which will let you pay for your care from your own pocket for a chosen time before the policy kicks in, which makes the policy cheaper. Furthermore, see if the policy offers you guaranteed premiums (i.e. level amounts) and for how long. Examine any policy riders and add-ons of interest to you and don’t forget to consult your choices with an independent broker.

Interested in more details? See Shopping for a long-term care insurance policy.

Comparing insurers’ offers
You can buy Long-term Care insurance from Ontario Medical Association/Sun Life Insurance, Penncorp Insurance Company, Manulife Financial, RBC Insurance, Desjardins or Blue Cross. Let’s briefly look at a few of them in turn.

Ontario Medical Association (OMA) offers a long-term Care insurance policy to you and your family members 21 to 80 years of age. The policy is in fact underwritten by Sun Life Financial. The prices are the same as those of Sun Life’s plans. The policy has a rolling 5-year premium guarantee and offers a possibility of no elimination period if you need facility care. The plan is receipt-based. Premiums are lower for men.

Penncorp offers a so-called One Step Long-term Care, which pays the benefit already as soon as you have one incapacity, including cognitive impairment, which allows the insured to enjoy the broadest possible coverage. This is the plan’s specialty in Canada. One Step Long-term Care Plan by Penncorp is available to individuals aged 30 to 70. This plan doesn’t have a premium guarantee on the policy’s premiums.

Manulife Financial is trying to bank on simplicity. Manulife’s policy is called Living Care and the client is merely required to fill in an application form and undergo an interview. This is conducted by telephone if she or he is less than 70, and it should be conducted in person if he or she is 71 or older. If you are older, the insurer may get in touch with your doctor to verify your medical information. Manulife does not require laboratory exams during a long-term care application process. The policy is not receipt-based and it has a minimum elimination period of 90 days, which is longer than most competitors.

At Desjardins, the rates are a bit more expensive than competition’s. However, you have the money at your own disposal and don’t have to provide any receipts. Premiums are guaranteed for the first five years of the plan and favouring males.

You surely see that it isn’t easy to understand all of the insurance offerings in the market. Ask a broker you trust to help you out.

To find out more info about long-term care insurance, please check out our Long-term Care Consumer Report.

Searching for more details? Please see our enumeration of Interesting Facts About Long-term Care Insurance.

Standard Life and Their Insurance Policies

2010-09-25T07:55:00.000-07:00

I would like to present to you several Canadian insurance companies in a few short articles, and I’d like to commence with Standard Life. Now, let me examine Standard Life’s Term and Universal Life plans.

The Universal Life policy:
You may apply for the Universal Life up to your 81st birthday. Perspecta - as this policyis being traded - has several nice things to offer, including multiple death benefit, flexible monthly premiums as well as cost of insurance options.

The Perspecta investment accounts include the following: managed accounts, indexed accounts (including Strategic Asset Allocation accounts), term deposits, and one daily interest account. What is more, Perspecta has a Shelter Optimizer and Account Optimizer, which maximize the return from premium investments by maintaining their tax-exempt status. The policy features client bonus payments in later policy years to further enhance value accumulation.

Applicants can add the following add-ons (and more) to the policy: 10 and 20-year term riders which are renewable and convertible, children’s term riders, critical illness riders for adults, as well as children, accidental death benefit, guaranteed insurability benefit and a benefit which relieves you from paying premiums in case of a disability.

On the downside, Standard Life insurance (which used to have some of the cheapest Universal Life plans out there) came with an increase in its pricing in 2005. Now, some age groups will be forced to switch to other insurance providers because of this increase. On the plus side, Standard Life is one of the handful companies in Canada to offer preferred rates on both their Term and Universal Life policy.

As an illustration, a 45-year-old non-smoking male will sign up to $211.95 monthly at least, as this is the minimum payment that keeps the policy alive.

Term Life:
Standard Life offers two term life policies in its portfolio - Term 10 and Term 20. You can sign up for the Term 10 policy at any time between age 18 and 70, Term 20 ends at 65. The plans are renewable to age 85 and they can be converted up to age 65. The Term policies also offer many different riders which are like those coming with the Universal Life policy.

The applicant can also decide to sign up for an individual or first-to-die benefit (e.g. with a spouse).
Those in good health and have a good family health history may be able to qualify for a preferred rate. As a bonus, if you are extremely healthy, you might qualify for a super preferred rate! On the downside, these term life plans are not available at face amounts under $100~000. This can prove crucial for senior applicants in case they are a constrained budget.

Basel and Canadian Banks

2010-09-24T13:26:00.000-07:00

Embedded contingent capital. This may sound like a term from another planet, but it is a model which may become the reality for our banks. The Basel Committee listened to Canadian advice and now considers implementing this new regulatory feature in a hope to help preserve the stability of the world’s banks. Finance Minister Jim Flaherty said he was “pleased” Canada’s advice was being seriously considered.

The Basel Committee on Banking Supervision was created in 1974. This institution which unites the ten nations’ central bank governors. The committee gathers four times a year to discuss recommendations, guidelines and best practices that the members and other states should implement in their home legal system. The committee’s decisions do not directly influence the national markets, yet they are mostly obeyed since uniform law helps ensure that multinational banks are not required to use their own compliance management, which decreases the operating costs.

These new proposed rules redefine the accounting principles regarding banks’ debt, Financial Times reported. Under usual circumstances, debt (whether in the form of bonds or loans) is accounted for as a liability of the bank towards its creditors. Creditors have an advantage over shareholders: in case a company goes bankrupt, creditors are satisfied before any owners. In addition, the debtor-creditor relationship is traditionally more systematic and the creditor can expect to recoup back the face value of the debt at the end of the lending term. Regular debt is therefore safer than equity and thus cheaper too.

In the future, banks could make use of the option of transforming some of their debt to equity if another financial crisis strikes. Such a conversion will have to be ordered by the federal government and will allow banks to expand their capital levels instantly. More capital should allow the bank to withstand for a longer time – hopefully during the whole of the crisis. Therefore, the term “embedded contingent capital” is defined as capital embedded in the bank’s debt and contingent upon the financial situation of the bank or the entire economy. The government must initiate and approve the transformation.

In addition to improved banking sector stability, the newly proposed rules are meant to provoke greater scrutiny of investors and lenders over the performance of the bank and lending practices. As the effect of the greater risk they are facing, lenders will have an incentive to monitor their banks, the Basel Committee thinks.

But is it really that important of an argument? LSM Insurance argues that greater incentives are a positive notion. But will they be backed by appropriate legislation ensuring heightened transparency of the banking operations so that there are tools for investors to actually observe their banks effectively? Plus, even today, investors are interested in the well-being of their banks. The change may add additional pairs of eyes interested in the matter, but the added benefit is still debatable.

LSM Insurance believes that the major implication of this upcoming law for the banks themselves will be their ability to acquire financing in an extra way that is cheaper than equity but a bit more expensive than regular debt. That is if they can find a market to sell it to.

Debt in the form of loans and bonds normally obliges the debtors to pay back in regular agreed upon instalments – annuities – according to an agreed-upon payment schedule. The face value of the debt is always paid back to the lender when the debt matures. Equity, on the other hand, implies ownership, including voting and other rights. The disadvantage is that it is up to the company’s management to set the dividends, or whether there are any at all. What is more, shareowners cannot expect the face value of their investment to be returned at the end of the term and the only way they can recoup the money they invested is to re-sell their equity to another investor.

If Canadian banks find a way to take advantage this borrowing facility “of the third kind”, their cost of capital will increase. In return, they will have an interesting safety measure in place to resort to in case worse comes to worst. Of course, there must be a market and means of valuation for such an instrument, which is still a large question mark in a market as small as the Canadian one Nevertheless, the banks seem to expect that the hassle is going to be worth it eventually. The reassuring factor is that this feature can only be applied upon federal government approval and is not the decision of the banks themselves.

According to Reuters, the banks in Canada say they are ready to embrace the new rules. From their current position, they want to continue in their successful post-crisis growth. Banks and analysts are forecasting acquisitions and mergers in Canada and abroad. Our banks will want to expand their presence especially in the European and US markets.

How Longer Sleep Might Make Your Little Ones Lighter

2010-09-20T09:48:00.000-07:00

Life insurance brokers repeatedly emphasize the importance of lifestyle in influencing your life insurance plan bill. Recently, academics discovered in a survey that if you improve your chidren’s day’s regime during their youngest age, it could possibly have a major impact on their well-being in the later stages of their life.

A survey conducted in the U.S. tried to find out if there is a traceable correlation between the length of a kid’s sleep and his or her body weight in a representative sample of U.S. 0 to 13 year-old children, Reuters reports. The survey was conducted in two chunks. In 1997, the researchers gathered the initial details about the people in the sample, followed up in 2002 by collecting information about the elapsed period.

The study showed that children who were able to get fewer than 10 hours of sleep before age 5 are expected to have elevated chances of becoming overweight in their later life. For those interested in more details: toddlers’ parents should allow their precious ones to sleep 12-14 hours every day. Older children before age 5 would do best to rest at least eleven-thirteen hours a day and children older than five but younger than 10 are advised to take ten- to eleven-hour sleep too. The trend continues in a similar way, encouraging teenagers to go with 8.5-9.25 hours of rest at night. The researchers take care to point out that interrupted sleep doesn’t add to one’s sleep time.

When examining children over five, shorter sleep periods were not proven to be directly associated with excess weight, but is nevertheless deemed to have the force to change a kid’s body weight in a negative direction temporarily. The causes of that haven’t been discovered yet. There are theories, some of them suggesting that sleep has an influence over one’s . This is true for adults as much as kids. In addition, Dr. Janice F. Bell explains that exhausted children probably do not feel like exercising as much needed. Perhaps a more trivial explanation could be that the briefer one sleeps, the more chances he or she has to consume.

It has been noted above that the advantage of this study lies in the fact that the tested subjects were watched for a longer period, contrary to only one moment. That way, the researchers were enabled to track weight variations in the very same boys and girls, not simply averaging across a mixed group. The majority of probes had to rely on statistical incidence of overweight kids among examined groups and every single subject’s memories regarding their habits.

We ought to be positively encouraged that sleeping practices can be easily tailored to one’s needs, mainly in younger children who can possibly be impacted most. Keeping oneself in good health will definitely improve one’s enjoyment in life, but may decrease the price of his or her health care and life insurance quote.

The European Capital Test

2010-09-20T09:14:00.000-07:00

In the middle of 2010, Europe’s bankers underwent a stress test to determine the assortment of their capital holdings and to what degree they relied on resources connected to problematic states. In spite of the results of the stress test being positive in the beginning, it was found after a while that there were important omissions of details in the test templates. The E.U. banks’ capital structure makes them indeed subject to more risk than is considered healthy.

A few weeks ago, in July 2010, a stress test was imposed on all European banks to determine whether they were ready to survive a future financial downturn. This assessment was chiefly aimed at assessing the EU banks’ reserve levels and its type – whether a satisfactory level of reserves exists and whether it is of a satisfactory quality for the examined banks to rely on. Several countries outside the E.U. introduced a test on their banks’ reserve ratios as well – LSM Insurance informed its followers and clients about that earlier this year as well. The E.U. test discovered that a handful of banks (especially in Greece) were in an unfavourable position, but the the findings in general helped to solidify the investor confidence in the European banking system in general. For those reasons, the Euro and other EU currencies outside the monetary union were benefiting from an unshaken position in the international market.

That is to say for a tad more than four weeks. Early in September 2010, The Wall Street Journal released a detailed analysis of the test results and compared it to a review of the official financial reports of the examined banks. WSJ found that the test subjects often did not manage to detail all the necessary descriptions on their funding, seeing as the numbers could not be entirely matched their statutory reports. This way, the transparency of the input details was unfortunately affected. The banks did not lie. Rather, the banks just did not care to categorize their holdings correctly as the CEBS guidance was not written clearly enough either to start with.

Traditionally, government debentures are believed to be carrying no risk. Considering the financial distress in in Greece, however, they have gained on importance. Greece’s near-bankrupt status puts riskier government debentures and as such, the Greek government bonds ought to be recorded differently. Many banks just would not make this principle clear when reporting. Some banks wouldn’t report parts of their capital holdings, claiming that it was because of their volatility and the fact that they were actively traded in the normal course of their business. This way, they effectively improved their results in an uncontrollable fashion. Since every tested participant “understood” the requirements of the test with slight differences, each tested subject disclosed its reserve holdings differently and that caused that the results are drawing from different assumptions. Therefore, they are virtually incomparable.

In short, the paramount issue with the testing was the limited amount of extra information that the banks included for the regulators. Obviously, the CEBS test requirements were too relaxed to really oblige the banks to reveal any useful pieces of data. This is unfortunate for the Euro, which experienced a severe shock and has been trying to climb back up insecurely from that time forth. It is bewildering to see that even now, the CEBS is still confident with the original rules.

We certainly hope the CEBS and other banking regulators all over the globe are going to learn out of this slip and will take care that any other tests and regulations are well-thought through. Any more issues would harm the trustworthiness of the affected economy.

Learn More about Lorne and the Company

2010-08-03T05:35:00.000-07:00

Hi everyone,

Just a quick question - have you already had a look at LSM Insurance on Facebook? We will be happy to see that you “Like” us!

Also, if you want to find your favourite broker, check out the exact location of LSM Insurance on wikimapia.org .

Thanks and stay tuned for more articles!

- Lorne

AXA Canada Term Offers Bonus: Disability Benefit

2010-07-28T05:02:00.000-07:00

Insurer AXA boast an great reputation all around the world with a network of four thousand professional brokers and associates coast to coast. In AXA they have 250 qualified workers who can help individuals to pick from a variety of good term,universal and whole life insurance products and art collectibles insurance plans.

AXA's Universal Life Insurance combines adjustable life insurance with a savings component. Another well-known policy is the AXA Art policy, where individual art collectors can defend their delicate items such as antique furnishings or vintage wine and more.

AXA Canada's Term 10/Term 20 life products have unique element that many clients are completely unaware of. AXA Canada is the single life insurer in Canada to prepare a term insurance product with a ready-made Extreme Disability Benefit (EDB). Sometimes instances, the cost is less expensive than normal term insurance products. The advantage of this policy is that, not only is the insured's loved ones protected if he/she dies within the stated time, but the policy provides the added protection of the EDB. This bonus can provide additional value to citizens who live with long and often hazardous winter road conditions. The EDB pays out half of the policy amount (up to $250,000) for insurees who suffer the disability. An extreme disability claim needs the claimant to have been influenced by a permanent disability and is dependant on assistance with five of the 7 aspects of regular living.

I can see there are certainly boundaries bounded to this AXA life insurance product, and it should not be exchanged with usual disability product (which protects a much wider spectrum of disabilities). The extreme disability must come before age 60, and this benefit strips the death benefit claim dollar-for-dollar. Therefore, if someone with a $600,000 life insurance policy develops an serious disability, and consequently dies--the $250,000 EDB will be subtracted from the $600,000 insurance claim.

picture by Ravages

Were You and Your Loved Ones Caught Up in The Earthquake In Canada Last Week?

2010-07-19T03:11:00.000-07:00

Did you feel the earthquake that struck south eastern Ontario and some of Quebec on June 23, 2010 at 1:41 pm EST?

Luckily, the magnitude was only 5.0 according to the US Geological Survey, and no extreme damage was reported. Just 61 km north of Ottawa is where the epicentre of the earthquake happened.

As reports came in, many people spoke of a gradual rumbling which escalated in intensity, a bit like building work going off below or around you. The vibrations could be felt as high up as the 9th floor of office and apartment blocks according to eye witnesses. The rumbling sensation may have been mild, but Lorne certainly felt the earthquake.

Even though natural disasters happen very rarely in Canada, they do occur and it brings home to us all how vulnerable we all are. It definitely makes me wonder what I can do to protect myself and my family should another disaster hit us.

Along with normal emergency preparedness, part of your preparation should include life insurance.

What many people do not understand is that along with disasters such as floods or hurricanes, earthquakes are one of the most expensive natural disasters. Earthquakes account for 30% of all damage by natural disasters from 1950-2001. While the human cost of earthquakes is only 9% compared to the 42% occurring due to famine, famine only accounts for 4% of the damage which is tiny in comparison to earthquakes.

People losing their lives fell in the 90's from 86,328 per year in the 80's to 75,252; but those touched by natural disaster climbed from147 million in the 80s to 211 million people a year in the 90's.

With a big increase in monetary impact from natural disasters since the 1960's we also see an increase of occurrences, which isn't good news.

With more disasters occurring then it stands to reason that more and more people are going to have their lives affected by them, as a result it is only natural to look at ways of minimizing the impact on your family.

The five influential Canadian insurance organizations we surveyed do provide death benefits for you and your family if such disasters take place, but you need to check the policy carefully if you choose not to use them and go elsewhere. If you are urged not to travel somewhere, such as a war zone and you do, be aware that this is one exception that insurance companies put in place on their schemes.

Delivered by Lorne Marr, the founder of LSM Insurance and mortgage life insurance expert

Not every shake is the same!

image by elana's pantry

Breast Cancer Financial Burden and Critical Illness Insurance

2010-06-17T10:03:00.000-07:00

Financial worries when you or a loved one is suffering from breast cancer is a burden you don't want to cope with.
As communicated by the Vancouver Sun, The Canadian Breast Cancer Network has announced a survey that "firmly places breast cancer as an economic as well as health issue. " Of the 400 females polled, 80% say they have "experienced some kind of financial problems from the disease. It wasn't just loss of income while they were unable to work, but many other payments that led to financial problems. So while these women were trying to deal with such a terrible disease, they were hit with a "double whammy".
The statistics unveiled that nearly half the respondents said they had to use savings and a quarter went into debt, some went onto disability or had to leave their jobs and 16% actually lost their jobs. One of the individuals who took part in the survey had been a nurse for 35 years could no longer cope with her job physically, as a result had to leave. Once she resigned from the hospital, she also lost her group insurance benefits and had to resort to saved income to cope with the cost
There are other options out their to using savings and getting into debt when you have this disease, but most individuals do not realise that there are other ways. Usually within 30 days of being diagnosed, a person with critical illness insurance could have a lump sum payment paid out to them. Whilst not just for breast cancer, this type of policy is there for this type of problem, too help with those additional debts you may incur.

LSM Insurance works with over 13 different insurance companies many of them provide critical illness quote to cover over 25 critical Illnesses.

picture by Sparktography

Understanding Mortgage Insurance In Canada

2010-05-31T16:33:00.000-07:00

Mortgage Life Insurance is one of those Insurances that not many individuals completely get to grips with. When you apply for a mortgage, your attention is fixed on having it approved, so when a lender tags on the Insurance you accept that it is necessary. If you look through this type of policy from your lending company, you will find it is no more than Term Life insurance. In other words, the value of the life insurance drops as the insureds mortgages drops, but in most cases, the rates go up based on five-year spans.

Instead of this sort of insurance, have a look at individual life insurance which is certainly more premium friendly.

You are able to combine life insurance and debt protection with this type of scheme or you can tailor it to suit your debt needs. The most efficient answer from a purely financial angle is to join the two requirements. In addition, by taking out individual life insurance for a mortgage, you can choose whether to make it a Term policy or a Permanent scheme Term insurance plans are fixed for a stated term, such as a 10, 20, or 30-year term. If you want a scheme to run for your lifetime as well as know how much is being paid out each month, then the Permanent scheme is the best one for you. If you are looking to have a lump sum of money, then a Permanent scheme is possibly the best one for you, as you can build up a cash sum which will pay out at a pre-set point.
Below are some more perks you could expect to have if you took out individual life insurance:

You are not stuck with the scheme, if you move or change banks the scheme can be tailored to accommodate this.
You choose who is the assignee, not the bank.
The individual policy pays out double in the case where both spouses die.
You are not limited to one or the other, you can have both Permanent insurance and Term insurance under one policy.
Just because you have paid your mortgage up, doesn't mean that you have to cancel your scheme.

Delivered by Lorne Marr, life insurance quote broker from Markham, ON

picture by rev Dan Catt

AIDS/HIV Positive - Looking for Life Insurance

2010-04-30T06:29:00.000-07:00

There are nearly 60,000 Canadians suffering with HIV or AIDS according to the figures stated as of 2005. Common life insurance is normally not available to individuals who have immune system abnormalities, including HIVAIDS.

But all is not lost, some guaranteed issue providers and quite a few simplified life insurers will supply some kind of life insurance.

Guaranteed issue plans has no medical assessment and no health queries. Consequently you don't have to state you have contracted AIDS or HIV There are 3 problems to this kind of insurance:
1) Firstly expect to pay big policy contributions.
2) the possible face amounts are tiny.
3) The final downside is the waiting duration, which is usually two years. In this instance the best payment you can hope for is the return of the premium with interest, if the insured dies within the first two years of a non-accidental death.

With no medical test but up to 12 medical questions, then a simplified issue life insurance plan may be the insurance for you. This kind of plan has the benefit of a higher pay-out and lower premiums. Check the policy details, as some of them still have a waiting period which could be up to 2 years. Canada Protection Plan and Assumption Life are two of the main providers of this type of life insurance in Canada. Canada Protection Plan deferred life and deferred term schemes have the most encouraging questions in terms of HIV and AIDS history.

They are asked as follows: Deferred Life within the past three years, has the insured been treated for unusual chronic infection, including HIV and AIDS. Whilst the Canada Protection Plan for deferred term asks within the past three years, has the insured been diagnosed with or started treatment for unusual chronic infection or immune system abnormality, including HIV or AIDS? - this policy is even better for the potential purchaser and has $100,000 of coverage.

Lorne Marr is life insurance professional

picture by Cayusa

Things that Driving Can Signify for Insurance

2010-03-22T08:39:00.000-07:00

A little known truth - having a driver's license can hamper you when you are scouring around for life insurance.

One of the main causes of death amongst younger people is down to vehicle accidents due to fast speeds and alcohol. Possible decline of mental state and slower reactions are the reason why drivers over the age of 65 are also looked at vigilantly. Therefore if the applicant is a driver, then their application is looked at very carefully and the following are the areas for attention:

How old is the individual?
Categories of violations.
How many DUI charges?
Any other offences and how many?
Did you have an road traffic accident and if so, how many?
Any other hazardous taking pastimes?

The underwriters will examine the number and types of offenses. They will want to know the date of both your last violation and your last suspension and they will want to know the length and an explanation for your suspension for a chance at being fast tracked.

If the individual has a DUI violation then the application won't be considered until 6 months after the suspension ends. If there are further violations as well as the DUI then this time extends to one year. Standard fees would be given if the individual only has a few minor violations. An average case means an additional $2.50 to $5.00 on your monthly charge for every $1000 of cover for a minimum of three years. Numerous DUI's are an assured failure.

Purchasing Canadian life insurance is a complex process. Don't omit any side of the process!

Buying Life Insurance Policy? 7 Checks

2010-02-06T12:46:00.000-08:00

1. Be aware of crooked insurance brokers who may advise you to change your policies even if they don't need replacing, just to get money out of you. Changing them often does make sense, as term costs have dropped across the board in recent years. But be careful when cashing in an existing whole life or universal life policy. With great rates given when you purchased the policy, these type of policies could have large surrender charges.

2. Standard life insurance plans usually have lower premiums and larger face amounts than the non-medical life insurance policies. These type of plans are normally restricted and only pay out the equivalent of the fees paid plus interest if cashed in the first two years. These non-medical insurance plans are designed for people primarily with significant health issues.

3. Another type of policy to avoid is the accidental death insurance policy which is pushed onto the unsuspecting customer. Whilst they may seem like a good idea when you are buying them, be aware that less than 3% of insurance claims are due to accidental death. When looking at the same term policy benefits, most of the time the accidental death policy is more costly.

4. Captive agents are only licensed to sell their own companies products, so be very careful of them. Companies employing independent brokers often charge cheaper premiums than companies employing captive agents. Not being able to shop around, captive agents rarely find the best policy to suit your needs and the best price.

5. Charges involved with the initial premiums can be off putting, but when looking at your life insurance premiums, work out the complete cost instead. Many insurance businesses try to lure clients with low initial premiums. Term insurance schemes, which offer low initial premiums that increase as the insured ages, are appropriate if bought for temporary insurance needs. All consumers are different and have different lifestyles, so schemes that assume everyone is alike are really not in your best interest. Time needs to be taken too assess each consumer and a policy found to suit their individual needs and circumstances.

6. Be knowledgeable of policy exclusions. With exception life insurance policies have a two-year suicide exclusion. Recreational pursuits and travel may be excluded from your policy if they are being done when you put the application in. As these exclusions and guides are different depending on which organization you pick, make sure your broker can look around for the best policy and is up to date on their guidelines.

7. Refrain from any misrepresentations on your application. All Canadian life insurance products have an incontestability period, generally of two years. During this two years, insurance businesses can contest a claim for misrepresentation or not admitting a material fact.

Life Insurance for the Older Generation

2009-11-26T01:01:00.000-08:00

Life insurance for the senior generation has altered substantially in Canada. Although insurance companies look more closely at applications the actual charges, in most cases, are a lot lower.

The following are six factors to keep in mind when looking into when thinking about life insurance as a senior:

1. Life insurance up to the age of 85 is now quite normal. Nonetheless, the premiums vary significantly between ages 65, 75 and 85. What a lot of people fail to contemplate is the best time to buy life insurance is now, that's because you are looking at today's rate.

2. The premiums payable can be anywhere from $20 per month with a face value of $5,000. If you are searching for traditional life insurance and want an instant life insurance quote, hunt no further.

3. Many creditor insurance plans end at age 69. Individual life insurance is certainly the better option if you are in good health and coming up to or have already retired.

4. If you fortunate enough to be in excellent health with an excellent family health history you could probably qualify for the preferred rates.

5. A last-to-die policy often has a smaller rate than the normal life insurance policies, this is on offer at a lot of insurance companies. This type of insurance is used largely for estate planning and pays out a tax-free death benefit upon the passing of the last surviving spouse. It's because the the insurance monies are paid out further in the future that the price are substantially smaller.

6. If you do have a few health problems then look at Simplified Issue policies. These policies do not have medical examinations, but they do have health questions. When picking which company you should go with, have a look at the medical questions; select the one you can answer no to the most. If you are wanting a scheme that has no medical questions then you will be paying out a lot of money; they also state that the death benefit can't be claimed for two years.

Photo: Seniors by Grant Talbot.

How Does Obesity Effect Your Life Insurance?

2009-11-19T03:23:00.000-08:00

Obesity is prevalent all round the globe and Canada is no exception. A survey undertaken in 2004 by the Canadian Community Health stated that over 23% of the adult public suffered from obesity. Another 8.6 million, or 36.1% were heavier than average.

For those that are overweight or obese purchasing life insurance is more complicated to purchase due to the direct health issues that go hand in hand with weight issues such as heart disease and diabetes. Life insurance comes in four types:

Preferred Rates: For people in very good health and with an outstanding family health history.
Standard Rates: The usual rate that an applicant is normally classified.
Rated/Substandard: Given to individuals who have a greater risk category.
Declined: Where the insurance company refuses to cover an customer.

Standard cover would be granted to a healthy man who weighed 250lbs and had a height of 5'9" - this is established on an in-house survey completed by some of the life insurance companies.

When working work the grouping a person comes under, insurance companies look at the risk variables linked with health problems that are often part and parcel of obesity. If you are obese find yourself a reputable broker as they are able to help obtain a reasonable premium for you.

Making an insurance company aware of lifestyle or any irregularities that may influence your quote is common sense if you want a fair quote, especially as many companies use the equivalent height/weight chart for both genders. Simplified Issue Life Insurance is another option for obese customers. These applications have no medical tests and less health questions. They come with higher costs and lower face amounts, but pricing options have increased significantly in recent years.

For more information, visit our instant life insurance quote calculator.

Image capture by Miran Rijavec.

Investing in a Life Insurance - Is It a Good Idea?

2009-10-24T14:19:00.001-07:00

Life insurance policies can be divided into two very broad categories - term insurance and permanent life insurance. Term insurance policies are generally prepared to cover you for a temporary period of time, usually 10 or 20 years. With a permanent policy, the insurance can last for your lifetime. Furthermore, there are three sub categories of permanent life insurance policies: Term 100, Universal Life and Whole Life. There are several variations of the latter two policies. An independent and qualified advisor can help you to find which of them is best for you.

The primary difference between Whole and Universal Life insurance is in the investment component - on a Whole Life policy, it is built in the premium, while on a Universal Life insurance it is separate. In addition, Universal Life policies offer a wider variety of investment possibilities. However, the most important aspect when buying a life insurance policy is that it must fulfil your needs. Let's suppose your needs are met and you can pay for a permanent policy. Now you need to ask - is it a sound investment?

Opinions on this subject vary, in part because life insurance as an investment is a very misunderstood topic. Now we will present the crucial pluses and minuses of using life insurance as an investment:

Advantages

* Profits within the policy and the MTAR limits grow on a tax sheltered basis. In case of Whole Life insurance, the premium shouldn't exceed the MTAR limit, Universal Life policies set a maximum premium according to the MTAR limit.
* The investment portion on an increasing death benefit Universal Life insurance and the dividends on a Whole Life policy are added to the face amount and are paid out on top of the policy face amount tax free.
* You can use the investment component on a permanent insurance to pay for future premiums, allowing you to pay future premiums with pre-tax money, rather than after-tax money.
* The minimum investment rate guarantees are set to more than 4% in case of numerous Universal Life insurance products. This is a great plus for investors who don't like to risk, particularly in today's low interest rate environment.

Disadvantages

* For numerous permanent policies, there are strict penalties, if you decide to cancel your insurance within the first few years.
* Generally, it is not a good idea to select a permanent policy, if you don't need a permanent life insurance, as the mortality charge for the life insurance would be higher.

Photo source: thinkpanama

Why Not to Get Life Insurance Policy Directly from a Website

2009-10-19T11:49:00.000-07:00

When you see the title of this article, you might think we are fighting against ourselves, as a company specializing in the online marketing of life and health insurance. Every day, thousands of people check our website and many of them contact us inquiring if it's possible to buy an insurance policy directly via our website. After pondering on this problem for a long time, we came to a conclusion that buying life insurance online would mean a disservice to our clients.
The following reasons are supporting our opinion why Internet is not the perfect way to buy a life insurance policy.

1. When you buy a life insurance directly on the Internet, it is just a single product and not a part of an overall financial portfolio. It should always be evaluated carefully and considered for a specific client - why and how much insurance is necessary and what's the best type of insurance. It is very difficult to do this without speaking to a broker over the phone or in person.

2. When you decide to buy your life insurance online, you can get only a limited product offer. Most companies selling life insurance online limit their portfolio to a few carriers and in some cases, just one carrier with just a few of their products.

3. There are often some features of the insurance policy that may not be fully explained to you when you buy the insurance online. When you buy your life insurance online, you may be surprised later about some details - for instance some ten-year term policies are not renewable or convertible, or may have a higher than usual renewable premium, and so on.

4. Many insurance products are just too complex to be sold online. There are too many details in some products (for example Universal Life or Whole Life insurance) that cannot be disclosed when the policy is purchased directly online. In case of BMO's Universal Life insurance policy, there are more than 400 investment possibilities available. There are just too many nuances in the whole plan, which makes it difficult to be offered online.

5. If you wish to get in touch with someone from the insurance company, it would be most likely with a call centre and not a broker.

Just to be understood correctly - of course the Internet is a great source of information when buying life insurance. Some Internet pages can give you a lot of useful information concerning life insurance. For instance tools such as our Instant Quote Calculator or Needs Analysis Calculator may be a great help. But finding information is very different to purchasing.

Record Declining Sales for US Life Insurance

2009-10-14T08:49:00.000-07:00

US life insurance sales took their biggest six-month decline since 1942, reported by LIMRA International. The current news from Bloomberg show that people have lost hope in investments associated to stocks which is having a knock on effect on sales of individual life insurance.

This however is a totally different story in Canada. While sales of universal life policies have declined 14% compared to the same six-month time span just a year ago, advisers have been able to use steady term life and whole life policy sales to offset those losses. Annual premiums in general have witnessed only a 1% drop this year.

A personal budget may be more rigid in the US, but the best part of US citizens will still have life insurance as the basis of their financial planning. Without decent life insurance, an unexpected death can create a financial tsunami in the normal household. For family members left behind, life insurance policies give security from financial worries.

Of course, that doesn't mean you can't still save cash on your scheme. The following are six brilliant ways to save cash on your life insurance.

One kind of policy to refrain from is accidental death insurance. This is the main type of policy to be sold by Canadian insurance companies to people that don't really require it. Accidental death is extremely profitable for these companies, but provides only rare benefit to the consumer because lower than 3% of all life insurance claims are paid out thanks to death-by-accident. When comparing this policy to a term policy the majority of the time the term policy costs less.

Be wary of captive agents. They can only sell that company's products. Insurance companies employing captive agents generally charge higher premiums than the organizations employing independent brokers do. Captive agents cannot shop the market for the best value for you and, in some instances, may not offer the product best suited to your needs.

Just because a premiums seems low cost, it doesn't mean that it works out the cheapest. The start up premiums could be cheap, but work out the complete cost as it could be more expensive than acquiring a slightly higher priced policy in the first case. Start up offers such as low start up premiums are incentives used by insurance companies to lure you in. Term insurance policies, which offer low start up premiums that grow as the insured ages, are pertinent if used for temporary insurance needs. The main problem with this philosophy is we are not all the same, nor do we all have the same requirements. They don't take alot of time to examine why you're seeking insurance, or how long you'll need it.

See if you can uncover a company offering preferred rates. When it comes to standard or preferred term premiums there can be a telling difference is cost. A 40-year-old man, non-smoker would hand over $62.55/month with Equitable Life for standard rates on a $500,000 Term 20 policy. Taking the same details, using the preferred rates this policy would cost just about $20 less. Click this link to see if you are eligible for your own preferred policy.

Be very careful that you have not got too much insurance. By making use of our Needs Analysis Calculator you can observe at a brief look whether you are over or under insured.

Don't try and go it by yourself, work with an independent broker. A broker that has access to the whole insurance market is more likely to accomplish your requirements than someone who has only got access to their own company or one or two others.

Photo source: Jonathon Colman

Canadian Tire Term Life Insurance: Is It As Favorable As It Seems To Be?

2009-09-18T13:07:00.000-07:00

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

Paychecks for insurance agents.

2009-09-08T05:33:00.000-07:00

Insurance advisers generally get their commission when an insurance policy is made valid. This goes both for captive advisers, who are paid just by one company, and for independent ones, who work for more different insurance companies. Two pluses of working with a broker are that they can advise you on the optimum type and amount of coverage and they can shop the market for the best premium. Well, we have to remark that it is the insurance company that is paying the agent. Certain misunderstanding has been brought about by the media and consumer skepticism. The following are points usually misunderstood concerning the payment process.

"The price of the life insurance policy is driven up by the commissions." The fact is that life insurance policies have some distribution costs, no matter if they are sold via salaried employees or self-employed advisers. With the price of the insurance policy, you already pay also the cost of distribution. It usually doesn't make any difference how the consumer buys the policy. Some companies, for example RBC Insurance or Manulife, charge the same rates for the same life insurance sold via multiple distribution models. A $200,000 Term 10 policy from Manulife will be the same price whether the policy is bought via their call center, website, or an independent advisor. "It is possible to negotiate the life insurance commissions." That is not true, they are not. The situation is different from when you are buying a car or a house. Once again, the commissions are built into the distribution costs of the policy and cannot be altered.

"Whole Life or Universal Life insurance pay higher commissions than Term Life insurance." Life insurance commissions are based mostly on the price of the policy, that means the higher the premium, the higher the commission. Whole and Universal policies have higher initial premiums than Term policies, but the Whole and Universal policies are bought once. If a person decides to purchase a Term policy, there are usually more of them necessary during his/her lifetime. Their price grows as the insured gets older. Each time a new policy is bought, the agent gets paid the commission, but also the insured person is older each time, so he/she has to pay a higher insurance rate. The insurance premium also depends on the health condition of the applicant - in case it has changed, the premium will increase or the coverage won't be available. It is key that the insured have a keen understanding of how much life insurance they need and how the different life insurance policies work. "Some companies pay better commissions than others." The truth is that the differences between commission rates from different providers are only slight. But anyway, this shouldn't influence the customer's decision, as insurance commissions are a fixed cost within the policy. Make sure the broker works with multiple carriers, some brokers, while independent, only work with two or three. We can ensure that you get the best possible price on the market, as our brokers cooperate with 15 different life insurance providers.

Photo source: escalade328s

Ever thought of insuring your collection of stamps?

2009-09-01T15:19:00.000-07:00

We all have heard of at least one person who falls into a category of collector. It can be assumed that most us have, at one time or another, collected a variety of things such as stamps, bubble gum stickers, Zippos or toy sets from breakfast cereal boxes. Then, after some time, we lose interest in what we used to thought of as collectible and boxes full of junk litter the attic floor.

But some of us turn out to be consistent and continue with their hobby for ever. There is, however, a certain type of collectors, who have taken this hobby to a higher level and have diversified their portfolios by investing in valuable coins or stamps.

So, who needs a special cover? Think about this: if you have standard homeowner insurance, it is probably good enough for your every day household needs But valuable collections are completely different story. In certain situations low value collections may be covered, but submitting a claim to the insurer is fraught with difficulties and can often be unsuccessful. The majority of homeowner policies will typically cover just the material cost and not its perceived value. Of course it is easy to claim for a broken TV set, but try claiming for a priceless rare Roman coin.

So, fellow collectors, what is the best approach to insurance if you collection is more valuable than your new car? Do you lie awake at night waiting for it to be stolen? Fortunately, an simple solution is at hand, with specialist insurance policies now available just for these kinds of collections. AIG and Allianz are but two of many insurance companies that have specialist policies for valuable collections.

Being a serious collector, it is most likely you will choose an 'all risk' policy which will insure your valuables against everything from fire to nuclear attack to 'mysterious disappearance' The strange phenomenon of 'mysterious disappearance' can be found in the cover that is provided by the Fireman's Fund policy. Transportation and traveling doesn't have to be a worry as both are covered in all specialist policies.

As it is natural for collections to increase in both size and value, policy writers account for this in the way their policies are written. You can simply phone your insurance provider to tell them them that you have invested in another item and this would be added to your policy immediately. If you are nervous about going to collect a new addition, then a quick phone call to your insurer prior to going and your new investment is insured.

Nothing can replace sentimental value in collection built up over many years.

Nevertheless, if you have adequate insurance cover, the financial impact of such a loss won't be nearly as bad as the emotional one. Unfortunately, you can't insure your emotions.

Photo source: Michael Wheeler

Strange Insurance: Weather Insurance

2009-08-31T08:55:00.000-07:00

Weather insurance - doesn't it sound strange? Well, in any case it represents one of the oldest forms of insurance. Weather has been the decisive circumstance for farmers and their living, ever since the beginning of agriculture. Nowadays, much more than crops can be covered by weather insurance.

Rain is the primary target of weather insurance. Luckily, it is quite easy to negotiate a rain insurance policy. Concerning rain policies, you can choose rain accumulation policies (for this, you need to determine how much rain would still be acceptable for your event and how much would already waste it) or dry hours (how many hours in a period of time were without any rain). Counteraction on snow are available in a similar way, either aiming on inches per session or per storm. A unique version of this insurance is particularly for municipalities and public organs, who want to cover extra costs by a special snow removal insurance policy.

And the whole insurance business goes even further. There is wind insurance against undesired wind conditions, perfect for instance for a hot air ballooning show. An ice cream promotion can pay for temperature insurance to secure the investment in the face of cold weather.

Mostly you can choose your own combination of the various policies needed for your event. Are you making a movie and need to insure underwater visibility or against lack of snow? No problem, film productions are typical customers for many unusual insurance policies. Another usual customer is a manager of a sports event, a concert, a festival or a trade show. For us, whose business is not directly influenced by the weather, like me, selling disability insurance, we can still purchase weather insurance for our free time and our holidays.

This is quite a new product, just getting to the customers from the whole world. You can get some of your money back if it rains more than expected during your holidays - this is available by some French travel agencies, in cooperation with Aon France. Analogically, a new sunshine insurance is now available by Lufthansa, the German airlines. A simple insurance policy is available for €20 ($31.24) for passengers from Germany. They can get €20 back for each day during their holiday when it rains more than 5mm.

Naturally, for destinations such as Tunisia or Greece, weather insurance is not really needed. And for places like Vancouver, they may not be willing to sell you a weather insurance. It wouldn’t hurt to ask.

Can you insure the weather, please?

2009-08-26T09:12:00.000-07:00

Most of us have already some experience with some insurance products - for instance life insurance, long term care or disability insurance. The financial safety of our daily life is at least a bit guarded by these options. While there are so many different types of insurance available, the whole selection might seem to be a bit conservative. But the world of insurance is more colourful than you would ever expect There are even some special policies that look quite bizarre One of them is events insurance.

Imagine yourself planning a marvelous wedding ceremony full of romance - taking place on the beach, with roses all around and guest count going into hundreds. But in the worst case scenario, it may happen that just before the ceremony begins, you step on your veil, slip and end up with a broken leg. For such cases, there is a special insurance product available, just to limit the damage to the minimum. Almost all imaginable attributes of an event can be secured by the insurance, and it doesn't make a difference if it is a birthday party, a wedding or a bar mitzvah you want to insure. The most common insurance types are liability and cancellation insurance, but you can adjust the insurance according to your specific needs. But what to do if you have dreamed of an outdoor party and the weather shows you its unfriendly face? No problem, if you purchase the policy in advance (around two weeks), you can ask also for this protection.

And there are many more possibilities concerning your events insurance. You can even retake your pictures, if the first ones were destroyed by an unskilled photographer, but you had purchased the right insurance. Also, all the gifts, jewelery and rental property can be covered And think about a case of a bride running away from the altar... Yes, trust me; you can cover cold feet too

Event insurance is sold by some of the most famous insurance companies in the world. Allianz offers it via Fireman's Fund subsidiary; Axa adds fireworks and Christmas light insurance, some other offer the option to cover alcohol related accidents. Prices often start below $100 for the basic coverage.

Briefly, you can cover your events from A to Z.

Photo source: Teozilla

Disability Insurance: Disability Insurance

2009-08-20T06:43:00.000-07:00

When you hear the word 'disability', you probably think of mobility loss as an effect of a sudden work or sport mishap. But as we can see from the statistics, the reality is quite different: twice more people become handicapped because of a serious sickness (cancer, diabetes or heart disease) than due to an accident.

Your chances of becoming handicapped

Twice more people under 65 years of age become long-term handicapped than decease due to an accident or illness. But naturally the older is the person, the bigger his/her chances of becoming handicapped are:

* out of every 100 children up to 14 years, 3 are classified as handicapped
* 4% of young people between 15 and 24 years become handicapped
* 7% of adults between 25 and 44 years become handicapped
* 17 in 100 adults between 45 to 64 become handicapped
* 40 in 100 adults 65 and over become handicapped
* 53% of adults older than 75 become handicapped

The current numbers tell us that right now, about 14% of Canadians are classified as handicapped, which is some 4.4 million in real numbers.

What are the advantages of disability insurance?

Different kinds of insurance were created to fit the different needs and situations one might meet. For example life insurance provides adequate amount of money for people who suffer not only from an emotional trauma, but also a change of financial situation after the loss of a close person. In the opposite case, after someone turns (completely) handicapped, the first problem is his/her not being able to keep earning a sufficient salary for themselves and the whole family. Moreover, there are even higher expenses connected to the extra medical and other care the person suddenly needs, which means even more of a financial issue for the family of the person who was once able to support him/herself and now needs specialized care. Thus we can see that a good disability insurance can help you solve even more problems than a life insurance. Being classed as handicapped doesn’t always mean that the person is not able of some kind of employment (see the various definitions of disability), but it has been reported that around 15% of those filing for bankruptcy have done it due to illness or accident. Disabled people can sign up for some government benefits, but this is only a limited option. The coverage group plans don't help to maintain your current wages either, as they usually cover between 50% and 60% of the previous net income.

If you are thinking about applying for disability insurance, first think about the resources you would have in case you couldn't earn a sufficient amount of money.

You might decide to:

* place the confidence in your spouse/family
* spend your savings or retirement funds
* sell your property/other assets
* live on credit
* be sufficiently covered by disability insurance that would supplement the missing income

Illustration: credits to World of Oddy

Canadian Universal Health Insurance: the Common Prenotations

2009-07-14T12:09:00.000-07:00

During the many years I've been an professional insurance broker, I've had more than enough of occasions to answer questions concerning the ups and downs of both the US and Canadian health care system. Although non of them is hundred per cent, I absolutely hate some of the lies that are spread about the Canadian system. Let's have a look at some of them.

"The health system in Canada is much more expensive than the system in the USA."

To begin with, there's this faulty assumption about the cost. It is often claimed that the Canadian system costs more than the US system, but in fact while Canada spends only 10% of its GDP, covering 100 percent of its population, the USA spends over 15 percent GDP, while at least 15 percent of Americans is not covered at all and even more Americans are left with not enough coverage. For example in 2005, the US government spent US$6,401 per capita on their health expenditures - that's almost twice the sum spent in Canada that year - US$3,359. (picture:pills by erix!)

"In Canada, it's up to the administration to make a decision who gets the treatment."

That's totally wrong: the only people in charge of these decisions are in fact the physicians. On the other hand, the situation is quite different in the States, where in fact it is up to your insurance administrators to determine what treatment you are allowed to get, never mind what you doctor thinks.

"The plan only covers the bare basics, so you end up paying a lot on any extras anyway."

Every province has its own rules concerning what is and what is not included by the public health insurance. The least you can count on is that the physician's fees and all the hospital procedures will be included in the insurance - which are generally the most costly items. Other stuff like medical equipment, dental & vision care would generally not be included. Because it's not too hard to average the cost of these extras, since all those big troublesome items are already covered by the national health insurance, number of insurance companies offers some additional low premium insurance that takes care of all these extras. For example the FlexCare Program from Manulife. All in all, to get the same level of service in the USA as in Canada, the Americans have to pay much much more. The system is simply running better in Canada.

"The biggest problem with the Canadian system are the long waits. In fact, Canadians rather travel to the US for their treatment."

The situation doesn't differ that much from the one in the States, because the waits associated with some specialist treatments (up to four weeks some selective surgery takes even longer. On the other hand, all urgent treatment, you will get it fast one way or the other. And, unlike in the US, noone cares whether you're rich or poor. For example, if you cannot get urgent care you need (i.e. surgery) and you cannot get it as fast as it is medically required, you will most likely be sent to the US - at the expense of the state insurance. If you spoke to a Canadian who rushed to the the US for their treatment and had to pay for it themselves, they most likely didn't need the treatment as fast as they wanted it.

"In Canada, the physicians work for the government. Also, you've no choice: you get your physicians picked by the government!"

Not true. The provincial government doesn’t act as an employer, since the physicians in Canada own their private practises just like their colleagues in the States, but constitutes the only insurer that the physicians have to deal with, therefore the paperwork is kept to the necessary minimum. Don't worry: you get to choose your doctor yourself.

Lorne Marr: Our Bios

2009-06-09T07:47:00.000-07:00

I have written some words so far and suddenly realized I haven't told much about me and my team. So, why not now?!

Lorne Marr CFP MBA (Company President) Proud Ontarian, I have been a practicing financial planner since 1993 having my diploma from the University of Windsor with an Master of Business Administration. Nine years ago I completed the internationally respected Certified Financial Planner designation. I am an Advocis member - The Financial Advisors Association of Canada. I have been also been a keynote speaker at numerous industry functions and has appeared in The Toronto Sun, The National Post, the Investment Executive, the Insurance Journal and the Advisor's Edge My commitment to providing clients with valuable service has made me an industry leader.

Chantal Marr BEd (New Broker Supervisor) Chantal Marr was born in the province of Quebec and was raised in Ontario. She completed her Bachelor of Arts at Laval University in Quebec City and Bachelor of Education at the University of Western Ontario. Chantal has a enthusiasm for helping people and has very strong organizational and leadership abilities. Chantal is in charge of new business development at LSM insurance and works closely with our group of insurance brokers. Chantal hobbies include languages and travel and she French and English.

Elisabeth Prosper (New Business Cordinator) Elisabeth comes from the island of Haiti before heading to France where she completed a Master Degree in Economics at the University of Aix-En Provence. Elisabeth is trilingual (Creole, French and English) and enjoys putting her strong communication and organizationa skills to work helping clients. Elisabeth has her life insurance license and takes a serious interest in natural nutrition.

Jack Bendahan BA (Senior Insurance Consultant) Jack was born and raised in Canada and studied at York University in Toronto, graduating with a Bachelor of Arts. He has vast additional education and professional experience in finance and debt management. Jackis also bilingual (French and English) and is keen tennis player and traveler.

Aman Kapur MBA (Senior Insurance Consultant) Aman comes from New Delhi, India where he acquired a BA (honours) in Economics. He further moved to the United Kingdom to do his Masters in Business Administration from the Heriot Watt University. Aman has fantastic experience of working over four continents and has performed various roles in Marketing and Finance. Apart from fluency in English, he speaks Hindi, Urdu, Punjabi and Russian. Aman admires various performing arts, travelling and living healthy.

Amy Bitton BA (Insurance Consultant) Amy was born and raised in Toronto, Ontario. She has been industry insider for several years. But sudden family experience further validated Amy's belief in life insurance and motivated her to get her professional liense and join the LSM team. Amy speaks Spanish and has marketing background. She also completed a degree in psychology. Her favorite hobby is yoga

Reasons Why Canadians do not Buy Life Insurance in Canada

2009-06-07T14:54:00.000-07:00

This question has been said billion times during my career. It's interesting, despite being a foundation of the majority of financial plans, crowds of people are postponing this question. It it can have value of millions. Why such a decision?

1. Canadians consider themselves too old. Many are unaware that most Canadian insurance carriers~companies insure individuals up to the age of 85 For sure there is no need to hesitate your age.

2. You may consider own health too weak. However, many life insurance Canada policies are accessible without a medical test and many others only ask a handful of basic medical questions. Besides, many clients who have a history heart attack, stroke, or cancer in the family can still qualify for life insurance in Canada. Try to visit our Non-Medical Life Insurance Page for a free quote.

3. It's too expensive. This is wrong information, your life insurance premiums can be as little as $180 a year

4. What's the point of life insurance?. Believe me, even in cases where you are debt free with no children, Life insurance can have a meaning for you to deal with final expenses. When you do havewith no children and/or burden of debt, life insurance is a perfect way to create instant liquidity when your family need it most.

5. I can;t understand all those terms and conditions. I have to admit you are right. Terms and conditions can be pretty confusing, but with my team of brokers we can help simplify the process for you. You can also visit LSM Instant Life Insurance Needs Calculator to find out exactly how much life insurance you need.

Buying a life insurance is important step in your life. You should be careful, on the other hand all information should be considered.

AIG - what about Canada?

2009-02-03T12:20:00.000-08:00

American Insurance Group was among the first companies, asking for government help in the USA. It's shares plunged to historical minimals and this huge insurance company (with history dating back to 1919) was fighting for life.

Canadian clients may know AIG Life of Canada - many of them put their money in it. Due to big loss of confidence, AIG LoC sales have plunged in last months. Are there any reasons to concern?

No - AIG Life of Canada doesn't carry bigger risk than any other Canadian life insurance company.

For some reasons:

1.AIG Life of Canada was sold to Bank of Montral few weeks ago. Bank of Montreal holds more than $400 billion of assets and represents a very respectable partner.

2. Canadian branch hasn't been financially connected to its American mother. Operations with sub-prime mortgages, which caused the main troubles were not important for Canadian AIG.

3. AIG LoC is member of Assuris, which provides protection for all policy holders. Policies below $200000 are 100% covered, those over this limit are 85% covered. Other kinds of insurance (like disability insurance or long term care) are secured too.

As an independent broker I have no interest on promoting any insurance company, but I ma trying to save your money. Cancelling AIG policy can you cause both direct (cancelling penalty) and (even more serious) indirect costs (changed health conditions, age, new suicide and incontestability periods, lost tax benefit...). So before you do, try to think about the real pros and cons of this step.

Universal life policy - risk free investment

2008-12-27T10:04:00.000-08:00

This year has been like a hurricane for all investors. Financial sharks, looking for the high profit on the stock markets, suffered heavy losses (or at least most of them).

On the other hand, also conservative investors have lost big part of their portfolios' value. High quality blue chips, real estate - all these sectors have reported declines. As a small investor, looking for simple, risk-free solution, what should you do?

The simplest answer is - nothing. But be aware the inflation in Canada is around 2% and with possible increased government spending next year (due to car industry bailouts) and
possible commodities (especially oil) prices growth may go even higher. So the value of your money is slowly disappearing.

Another solution is to use services of a traditional bank. Unfortunately (for savers), Bank of Canada cut interest rate down to 1.5% (50 years low) and since its big brother FED is holding the key indicator near zero, it's not probable the rate will go up soon. This means your money are in negative real growth even in bank.

But there is one solution, with tool not bounded to the financial market. It's life insurance Canada universal life policy. You can find this product in most offers of Canadian life insurance companies. Base is tax sheltered, so you have guaranteed, risk-free minimal growth of 4%!

You can hardly find similar simple, safe opportunity in these days. Check our site for the offers.

What about Primerica?

2008-12-06T16:18:00.000-08:00

This multi level marketing based company is active on Canadian market for some 20 years. Loved by somebody, hated by somebody else. If you want to start your successful(???) career there,I recommend you to read some articles from (ex)agents of Primerica.

I am here to present you some disadvantages of their PRODUCTS. And since I am insurance broker, it will be about their life insurance.

I have some experience in business (16 years are enough I think) to stress some points

1. Primerica is expensive. Their MLM structure causes additional costs, paid by - you. Your premiums will carry the weight of pyramid of advisers. So before you apply for their policy, check some online quotes, for example at life insurance Canada

2.Term life fits all - at least when talking about Primerica. But not in the real world. Term life is good, often the best, but sometimes permanent policy fits your needs better!

3.Captive agents. They are not going to offer you the complete market range of products. They know what their company offers and you will get no other option.

4.Part time advisers. Do you want your surgeon to be just part time worker? No, I think you would like him to be dedicated to his job. And the same with insurance - financial markets often need precision of a brain surgeon!

5. Non-convertible policies. Primerica is not going to give you the option of turning your policy into permanent. So if anything happens to your health, you have a big problem with your policy's renewal.

Long term care

2008-09-22T14:32:00.000-07:00

Daily assistance in our living - something we are not imaginating during our retirement. Unfortunately, we ca never be sure - there is 50% chance of needing long term care after your 75 (according to theUnderwriters LTC council in). This is the price for prolonging human lives....

Long term care insurance Canada - what it is? - It is tool, which will pay the insured individual a tax-free benefit every week, if their medical condition requires to be given assistance with two out of the six activities of normal daily life. Bathing, eating, dressing, toileting,maintaining continence and transferring are all among (usually closer specified by each policy).

Our society is getting older and the expenses aimed on the senior citizens are growing. It creates pressure on public funds, which will be hardly sustainable in some years. Possible answer is the private long term care insurance. I have prepared short presentation in case you want to visit your broker prepared!

Temporary or Ongoing?
Temporary care occurs for weeks or months and is used to describe rehabilitation periods from a hospital stay, recovering from surgery, illnesses or injuries or terminal medicalconditions. Ongoing long term care means the need of assistance in caseof chronic medical conditions or chronic severe pain, permanent disabilities or dementia.

Skilled or Custodial care?
The first one refers to services which can be provided only by licenced medical personnel. On the other hand custodial care refers to services, which are not so complicated to be provided by licensed personnel only - it can be given by any individual. Some long term policies only cover skilled care.

Setting
Policies usually have specific limitations reffering to possible facilities - care can be provided at home, in the home of a family member or friend of the recipient, adult dayservices location, in an assisted living facility or board-and-carehome, hospice facilities or nursing home.

Elimination periods
The same as disability insurance in Canada - it refers to the amount of time which must pass before you begin to receive your weekly benefit. The benefitperiod determines how long you’ll receive the coverage for.

Premiums
Simply - how much are you going to pay for your policy. Elimination period, benefit period and the amount of daily benefits - these are the key factors to influence the premiums. Pay extra attention to premium caps, as most LTC policies inCanada offer guaranteed premiums only for the first 5 years after thepolicy takes effect.

Riders
The most important ones are the "cost ofliving adjustment" and "return a premium" riders. The former allows the benefit to be raised according inflation, whereas the return of premium benefit returns the premiums to your beneficiary in the event you passaway.

Disability insurance in Canada

2008-08-20T10:37:00.000-07:00

Everyone can become disabled. Just one moment of inattention on the road (and it doesn't have to be you, who will make a mistake!) and your professional career is ruined. Of course, in modern world of insurance, there are ways how to be protected. Generally, there are 3 possible solutions (which may be combined).

1. Employer-paid disability insurance
Most of the emplyers have some group policy. Anyway, you should check it properly - it doesn't have to cover everything.

2. The Canada Pension Plan (CPP) disability benefit
This is the basic protection, provided by the government. It can save you from the worst, however, don't expect you will be able to handle the same living standard, not to say about new needs, emerging from your disability!

3. Private disability insurance
Disability insurance Canada policies, provided by private insurance sector. You can buy a policy, which will be paying you regular monthly payments for certain period. All conditions are negotiable - bonus period (for how long you will be getting the money), elimination period (when will you get your first payment), sum of the payment, type of the policy (cancelable/ non-cancelable). You can apply also for discounts, eligible to some occupations.
So remember, disability insurance in Canada can do a lot for you!

What is not covered by life insurance policies?

2008-07-16T00:37:00.001-07:00

Life insurance Canada is a contract. And just as the insured desires protection, so, too, does the issuing company.

How does the average life insurance company protect itself? By writing policies that protect them from the following five common dangers:

1.Suicide.
All life insurance policies have a suicide clause that protects the company from individuals intentionally seeking to commit suicide and pass on a death benefit. Two years from the date of issuance is the normal period for such clauses.

2.War.
Anyone who dies because of an act of war, be he a soldier or a non-combatant, will not be covered by most life insurance policies. It makes sense that an insurance company would seek to protect itself against war related deaths for which it simply could not afford to pay.

3.Hazardous behaviour.
So, too, those who engage in hazardous pastimes such as acrobatic flying or bungee jumping: proceeds of policies may be witheld should they lose life or limb while participating in such activities.

4.Restricted countries.
Any insured who travels regularly to regions where disease or strife regularly claim the lives of locals and/or tourists may also find himself excluded from benefits should he fall victim during his travels. (Many insurance companies simply raise premiums for frequent visits to such regions).

5.Faulty applications.
All insurance policies contain incontestability periods – usually two years – during which an insurance company may choose not to pay if it believes an application was submitted that withheld information or otherwise sought to fraudulently obtain a policy. Even though the insured obtained the requisite inspection report and underwent a medical, most companies lean heavily on the applicant’s input to determine the appropriate coverage and premium. If it’s determined that full disclosure would have denied the applicant a policy (or even lowered his rating), the company is not obliged to pay.

Which type of life insurance is best: term or permanent?

2008-07-15T04:39:00.000-07:00

The cost of an insurance policy should almost never be the final determinant of which type of product to buy. There are advantages and disadvantages to both term and permanent life policies, and it’s important to figure out one’s personal insurance objectives before making a choice.

Term insurance was designed with cost in mind. It offers inexpensive protection for a temporary period, usually 10 or 20 years, and is normally purchased by those who have a specific objective in mind – usually coverage of a mortgage, line of credit or business loan. For those who worry about leaving such debts behind in the event of an early death, term life insurance offers a simple solution.

A single example will serve to prove the cost efficiency of term life insurance Canada:

A 40-year-old male non-smoker can take out $250,000 of term-20 coverage with Canada Life for $37.58 a year. But that same applicant will have to pay $214.20 a month for $250,000 of 20-pay whole life coverage with Empire Life.

Need we say more?

But for those who desire an investment component to their insurance coverage, term will certainly not do. All the premiums paid into a term life policy are unrecoverable at the conclusion of the term purchased.

Not so with universal life and whole life (permanent) policies, whose premiums are considered “paid-up” and provide cash surrender values and policy loan opportunities for the insured. In many cases the option of what types of securities and where to invest is also left to the discretion of the insured.

For those who seek to purchase life insurance but want more flexibility with their paid-in premiums, the added cost of whole life or universal life policies are clearly worthwhile.

In some cases, a mix of term and permanent insurance may best meet the needs of an applicant with more complex needs. It’s always best to consult with a financial advisor before making such decisions.