The « PROS » :

➢   This insurance provides, for a fixed period of time, generally 1 year, 5            years, 10 years, or 20 years, insurance coverage.

➢   Additions to improve health are offered by insurers to supplement                 term life insurance. These additions redesign your protection to meet           your needs.

➢   The rates (premiums) start very low and increase with every renewal             and as you age.

➢    A multitude of brokers or financial security advisors recommends subscribing to 10 or 20 years term life insurance and a subsequent reassessment of your needs.

➢    The ability of term life insurance to be converted to permanent life insurance is an important feature during renewal which offers you additional benefits and helps you avoid higher premiums.

The « CONS » :

• If at the end of your term, you have an accident or develop an illness, your insurer may refuse to renew your coverage.
• Zero redemption value or savings component.
• After your 85th birthday, the majority of insurers refuse to renew coverage for term life insurance. If your policy is not renewed due to your medical history or an oversight on your part, your benefits are lost forever.

➢  An initial medical exam is required at the beginning of the policy. No renewal is necessary and you keep the original conditions of the agreement, even with increasing age or changing health status. Even when your condition deteriorates over time, you are still covered.

➢  No surprises during the contract. The price of the premiums remains the same throughout the contract.

➢  This product offers sufficient coverage to replace your income for the benefit of your loved ones and ensure the continuity of your plans and investments.

➢  Permanent life insurance honors the debts you leave behind, provide a legacy to your heirs and pays your final expenses.

The « CONS» :

• Don’t take out permanent life insurance if you are already financially stable and can leave a sufficient legacy after debts. It would hurt you rather than help you by forcing you financially without any benefit.
• Permanent life insurance becomes a real need if there are budget constraints and you out your legacy and family at risk.
• Permanent life insurance is never the cheapest option available, especially compared to term life insurance.

➢  Opt immediately, based on your needs, for premiums that are fixed or are adjustable. There will be no increases thereafter as there is no need for renewal.

➢  Hedge funds that are not taxable due to tax laws. This can potentially pay for your premiums later on and relieve you of this financial constraint. You can also withdraw money for personal use.

➢  Due to its flexibility, universal life insurance accumulates a significant amount of cash based on your wishes.

➢  Many customers who consider cash surrender value to be important like the security of this product. In case of a sudden financial problem, you can receive the cash value (or part of it), all taxable, unfortunately. Your annual statement will indicate the amount available for withdrawal.

➢  Universal life insurance shows an adequate amount of insurance to meet any need, be it to bequeath a significant legacy or to take care of your debts (personal loans or mortgage…). To establish a profitable estate, this insurance solution is quite ideal.

➢  If your capitalization fund has adequate funds, you don’t need to pay for your premiums.

The « CONS » :

• Follow the advice of your and place all possible amounts in your RRSPs and TFSAs or other tax shelters before buying a universal life insurance policy.
• Expect tp pay very high policy costs, much more than for permanent life insurance or term life insurance.

For more information on universal life insurance, here are the complete product details on our site.

➢  If poor state of health causes a denial of coverage from all life insurance companies, guaranteed life insurance or no medical examination is the solution to your problem. Thus, you can avoid taking a medical exam, replaced by a concise form that you must fill out completely, in order for the insurer to know your physical condition.

➢  Only in rare cases will your policy not be activated automatically as soon as the insurer receives the form.

➢  Usually, some answers will be adequate to subscribe to a plan. You will receive a confirmation from the insurer upon receipt of your request.

➢  This insurance product tends to be more prevalent as a multitude of insurers offers similar policies.

➢  Scales based on complex figures determine premiums. The estimate of the risks that you pose is measured as follows: your gender, your use of tobacco, and your age. The premiums, once established, will no longer increase.

➢  You will get a lower face amount than other insurance products but this will still benefit your finances. This protection will give your family the money to pay for your final expenses. If you can get a bigger insurance amount, try to choose based on your total debt or the amount you want to bequeath to your beneficiaries.

➢  You will immediately see the benefits of acquiring life insurance without a medical examination from the many leaflets distributed and the analyses of solutions in this field. You can discover right away the advantages of using this approach due to the absence of additions or supplements to these policies which facilitate your research.

 The « CONS» :

• Sign the agreement as soon as possible! Fortunately, this insurance is provided until the age of 70. On the other hand, the longer you wait, the more the prices will increase.
• Many life insurance policies with guaranteed membership require 2 years before the start of the contract. If you die within that time, the life insurance company returns all the premiums paid since the signing of the contract.
• The premiums are very high since the insurer, without knowledge of your true state of health, must deal with significant risks. This is why premiums reflect a very negative estimate of each age group in society.

HOW TO DETERMINE THE RIGHT PRICE TO PAY FOR YOUR LIFE INSURANCE?

PREPARE YOUR BALANCE SHEET

PREPARE YOUR DOCUMENT

You will need to include:

• Your total debt such as your student loans and personal loans, for example
• The insurance policies you own (mortgage, home, life, car..)
• The balance of all your credit cards
• Real estate (their value)
• The total of your investments such as pension funds, your RRSP or TFSA…
• Your valuables (jewelry, art pieces)
• The total of your bank accounts

ADD UP YOUR LIABILITIES

In the first column, list all of your debts:

• Credit card accounts.
• Loans (mortgage, student loans, personal, car…)

Add up the amounts in this column and mark « Total liabilities» near this result.

ADD UP YOUR ASSETS

In another column, list down your assets:

• Your retirement funds.
• The value of your: vehicles, house, art pieces, properties or buildings, jewelry, etc.
• Your bank accounts (only those in the positive)
• Your investments (placements such as RRIF, TFSA, RRSP…)

Add these amounts in a new column and mark « Total Assets » near the amount.

CALCULATE YOUR NET WORTH

Deduct your total liabilities from your total assets. The resulting amount is your net worth.

If your net worth is positive, opt for a life insurance that will require investment or a lower amount of insurance to reduce your premiums.

On the other hand, if the net equity is negative, think of a life insurance policy that will cover your debts to leave less or no obligations behind to your family.

MAKE YOUR BUDGET ON A SOLID BASIS

Since you now know the desired amount in insurance, you have the option to set up a budget (a list of your monthly cash inflow and outflow).

Thoroughly inspect the margin left between all of your income and unavoidable expenses.

Always leave yourself some latitude to prevent situations beyond your control such as transient disability or damage to your appliances.

Determine a portion of your life insurance budget so that it won’t be a burden to you.

Let the partners of « Compare Insurances Online » work it out for you. They are all insurers and insurance brokers.

Fill out the form on this page to receive advice from one of our partners.

He will find an insurance solution for you.

There is no obligation on your part!