AIG - what about Canada?

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

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?

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.