Tag Archives: Life Insurance Specialist
Life insurance is a difficult subject, it is a decision we all have to make, and a thing we all should have. Whether it be a simple policy that will pay out when we die so that our families are not overly burdened by our passing, or an investment for our retirement. The industry is full of difficult language, clauses, contracts, exceptions and fees. It is a minefield waiting to catch the unwary, and one that some people dread to walk upon.
That’s why we have insurance broker, and life insurance agencies. They are there to make the minefield seems a little less perilous, safer to walk through. They are there to make sure that you connect with the policy that suits you best,
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.
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.
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,
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.