Return of Premium Life Insurance

Posted on January 8, 2013 by Peter

So you’ve decided that you want the protection that only life insurance can

provide for you, now what? For the majority of Canadians what comes next is a period of online research followed by deciding which particular type of insurance will best cover their needs. The choices that you have boil down to three basic types: term life insurance, whole life insurance and return of premium (ROP) life insurance. If you’ve made it this far, chances are you’re more than familiar with both term and whole life insurance but a little unsure as to what exactly return of premium life insurance is and the advantages it offers.

Return of premium life insurance is essentially a hybrid of term and whole life insurance. Like all life insurance policies, it guarantees a death benefit should you pass away. It is similar to term life insurance in that it provides coverage over a specific period of years, and like whole life insurance you do get money back. But unlike whole life insurance buying return of premium life insurance is a lot more straight forward, in that you only select the amount of coverage you desire and for how long. If you outlive your policy’s term, you get all the money you paid in premiums returned to you.

The cost of return of premium life insurance

Return of premium life insurance is more expensive than term life insurance, but considerably cheaper than whole life insurance plans. As a rough guide, Return of premium life insurance is approximately 50% more than a comparable term life insurance plan. It is important that a return of premium life insurance plan is not mistaken for an investment tool as it offers no returns. It is for this reason many financial advisors suggest a term life insurance, while investing the difference.

We can help

At SolutionsFinancial.ca we know that life insurance shopping can leave most people’s heads spinning, SolutionsFinancial.ca is here to help guide through all the different plans available. If you’re interested in getting the best coverage available at a price you deserve then we can help. All we need is a little information, and we’ll take care of the rest. SolutionsFinancial.ca is simply the quickest and easiest way to life insurance in Canada.

Can I Buy Life Insurance on Someone Else?

Posted on October 13, 2011 by Peter

You are allowed to pay the premiums and collect the benefits on a life insurance policy that insures a life that is not your own!

Can I buy life insurance on someone else? Or here is the one that really scares people. Can someone else buy life insurance on me and then collect the money if I die? I hear people asking these questions all the time and wanted to address both issues.

Can I buy life insurance for someone else?

The simple answer is, “yes”. You are allowed to pay the premiums and collect the benefits on a life insurance policy that insures a life that is not your own. For example, many people have life insurance on their children. Another example is that companies sometimes buy life insurance on their key employees so that they can recover from the negative financial effect that losing that employee might cause.

There are two things that you need to consider. One, you are going to need to have the consent and participation of the person whose life is being insured. Two, you are going to need to provide a reason to the insurance company that you will be affected financially if the insured dies. The only exception to this is life insurance on children. Usually the parent of a minor can purchase life insurance on the child without any additional reasons. If you have nothing to lose from the death of the person, then you don’t really have an “insurable interest” and in such cases would only gain financially from the death of the insured. Just being a relative does not necessarily create an insurable interest. You will have to prove that you are somehow financially affected by the death of that particular relative.

Can someone else buy life insurance on me and then collect the money if I die?

As you can tell from my comments in the previous paragraph it is going to be very difficult for someone to buy life insurance on you without you knowing about it. First of all they are going to need your consent and participation. Most life insurance policies require medical tests on the insured and I think you’ll notice the person coming over to your house to take your blood and to strap the EKG on your chest.

If a person purchases some kind of simplified issue or guaranteed issue policy without you knowing about it, then they are committing insurance fraud, which is a felony and would cause the policy to be voided.

Also if the person can’t prove insurable interest the insurance company is not going to let them buy the policy. The company will let anybody willing to give them the money pay the premiums, but the company is going to need to know that the person who is named the beneficiary of the policy has the insurable interest. Now if you originally purchase a policy you can usually transfer the ownership of the policy or change the beneficiary to whoever you want, but you will have to prove that the initial beneficiary has insurable interest.

Speak to a life insurance specialist at Solutions Financial to find out more on buying life insurance on someone else.

Excuses for Not Having Life Insurance

Posted on September 15, 2011 by Peter

There are No Excuses for Not Having the Best Life Insurance Policy at the Best Price!

As a Canadian insurance broker I have heard many excuses over the years as to why people won’t buy life insurance, here is a small list of the most common excuses.

I don’t want to leave money to my spouse; after I die they are just going to spend it with their new partner.
I’m totally healthy I will buy it when my health starts to fail
We like to travel 2 or 3 times a year and we can’t afford any new expenses right now.
My kids can deal with it when I’m gone.
My father and mother lived into their 90s.
I don’t believe in life insurance, it’s a scam.
My debts don’t have to be paid after I die.
I totally think that I will never die.
I won’t buy life insurance because I have to pay a higher premium because I smoke.
I am going to wait until I have stopped smoking cigarettes before I get life insurance.
I’m only forty I’m too young for life insurance.
My spouse can deal with it; I will be dead who cares.

As your trusted Insurance Broker, it is my hope that after reading through this list that some of your will realize how ridiculous and short sighted all of the above statements are.

When you’re deciding about whether or not to get a life insurance, think for a while and ponder on these few questions:

Are you married?
Do you have any dependents such as your children or your parents?
Do you own your own home?
Do have a large outstanding balance on credit cards / lines of credit?

If you answered yes to any of these questions it is a likely indication that you should have a life insurance policy in place.
The answers to these questions along with the advice of a professional insurance broker will guide you to figure out if you should buy a life insurance policy, and if you do, what type of life insurance coverage you should purchase.

One of our life insurance experts would be more than happy to answer any of your questions. Please feel free to contact one of our life insurance experts for a free consultation. Absolutely Free. No Cost. No Obligation. You may also be interested in one of our free online life insurance quotes.

Life Insurance … What is the Underwriting Process?

Posted on July 18, 2011 by Peter

The Insurance Underwriting Process

The underwriting process generally takes about 4 to 6 weeks however if an attainting physicians report is required this could add several more weeks before obtaining a decision from the insurance carrier.

Life Insurance Underwriting is a process that determines the risk of insuring a person. Underwriting involves looking at the application and evidence provided to determine the risk the insurance carrier takes in insuring this individual. This calculation is translated into the cost of the policy, which means the more risky the individual is to insure, the more the policy will cost.

Factors an insurance underwriter use include a variety of things, such as the applicant’s age, general health, family medical history and any preexisting medical factors they may have. Also included are an individual’s choices such as if they smoke, or if they engage in risky activities such as sky-diving, bungee jumping or motor vehicle racing. If you are looking to purchase life insurance it is imperative that you understand the options that are available to you.

Buying life insurance can be a confusing undertaking without the guidance of an insurance specialist. With so many options and types of policies offered, it is no wonder people often feel weighed down. A life insurance broker works with you to make sure this is as simple and effortless as possible.

Speaking with a life insurance specialist with Solutions Financial is a step in the right direction.