Smoking Cigarettes Costs More for Insurance Premiums

The elevated risk of being a smoker for life insurance

If you are among the 20% or so of Canadians who regularly smokes cigarettes, then you will be faced with a higher cost for your life insurance. In fact the insurance companies treat smoking very black and white. If you have had even one cigarette in the last 12 months they will consider you a smoker and increase your premiums. I guess there is no reasonable graded scale for smoker, quasi-smoker and non-smoker. Either you smoke cigarettes or you don’t. And if you do, then you present an elevated chance of health risks and a shortened life expectancy.

Not every smoker suffers from common illness related to smoking. We have all heard the stories of so-and-so’s great uncle who smoked 2 packs a day and lived to 95 without any health problems. Even if people like that do exist, there are still hundred who suffer cancer, heart disease, emphysema, and many other smoking related illnesses. Being a smoker puts you amoung that group, and it is the statistical average risk of the group the insurance company is looking at – not at you individually (unless you already have a serious smoking related illness).

BIG TIP: If you ever quit smoking, and are off all forms of tobacco and nicotine products for a period of 12 months (include nicotine gum and the patch) then you can have your life insurance premiums reduced to non-smoker rates. Once you have qualified for non-smoker rates the life insurance company can never again raise your rates, even if you take up smoking again in 3 or 4 years. You can save more money than just the cost of cigarettes when you quit – your life insurance premiums will probably be cut in half too.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about smokers having to pay more for life insurance premiums. would be very much appreciated.

Can You Buy Life Insurance If You Smoke Marijuana?

Many Marijuana Smokers Qualify for Standard Smoker Premiums for Life Insurance

The majority of people in Canada who smoke marijuana just do so occassionally. In this video I want to explain to you the difference between casual/recreation marijuana use and habitual marijuana use when buying life insurance. Life insurance companies take a very different view-point of the risk you present the company depending on how much marijuana you smoke on average.

For those who only occasionally use marijuana, like 2 to 3 times per week, they will just be treated like a standard smoker (assuming no other medical conditions). Habitual marijuana users will not be looked on so favourably. I think there are many reasons for this. The old argument that marijuana use is a gateway drug to harder substances is a factor once a person is using it very regularly. Also, there is a stereotypical lifestyle that is associated with habitual marijuana use that is not very healthy. But, I think the biggest factor is the hard evidence that people who regularly smoke marijuana do have much higher instances of health problems and an unhealthy socioeconomic standard of living.

Even though this might not be you, the insurance company is looking at broad statistics, and any risks you bring, be they lifestyle choices or health problems, are evaluated on the average or most typical outcome. So, your choice to smoke marijuana, either occassionally or regularly, with result in either standard smoker premiums or an increased premium (and even a possible decline if you smoke a lot).

Marijuana users can get confidential insurance advice

I hope you find this video helpful. And, as always, if you would like to speak with a qualified insurance broker about whether or not you could qualify for life insurance, please contact us. We can give you private and confidential advice about your insurance planning considering your marijuana use.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about buying life insurance when using marijuana would be very much appreciated.

How to Get Non-Smoker Premiums if you’re A Cigar Smoker?

Lite to Moderate Cigar Smoking can Qualify for Non-Smoker Rates

If you’ve ever looked at buying life insurance and you smoke, you know there is a large difference between smoker and non-smoker premiums. If all you smoke are large cigars (not cigarillos, which are the size of a cigarrette but use cigar tobacco) you can very easily qualify for non-smoker premiums and save a lot of money.

Almost all life insurance companies in Canada offer some leniency when it comes to smoking large cigars. The typical allowable amount is an average of 12 cigars per year or less (that’s one per month). If you are an occasional cigar smoker – like you’ve done it while on vacation in Cuba or go to a cigar bar a few times a year with friends, then you can easily qualify for non-smoker premiums without much trouble. Once you smoke more than 12 vigars per year, all insurance companies except one will rate you as a smoker, and you cost for life insurance will more than double.

There is one life insurance company that has more favourable treatment for cigar smoking – Canada Life. They allow up to an average of 52 cigars per year (that’s one per week). So if you like to indulge in cigars on a somewhat more regular basis, then Canada Life is your best choice for life insurance because their non-smoker premiums are still very competitive and you can get it even if you are a moderate cigar smoker.

One thing you can’t qualify for is preferred rates, or discounted premiums for a non-smoker in good health. Even if you are an outstanding athlete, a few cigars per year means you can only get standard non-smoker premiums. No discounts.

Hope you enjoy the video above and leave us a comment below about other useful life and health insurance videos you wish to see. If you need help getting lower premiums for your life insurance, please contact us to speak with a life insurance broker in your area.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about getting non-smoker premiums as a cigar smoker would be very much appreciated.

Video about Various Investment Products Available from Life Insurance Companies

Seg Funds, and Annuities and GMWBs, Oh My!

In this short 4 minute video we showcase the various investment products available to Canadians from life insurance companies. Many of the products are very similar to those available from the Mutual Fund Dealers Association (MFDA) while others are turly unique to the life insurance industry.

When it comes to designing income generating products, life insurance companies are far more advanced than traditional investment management firms. With the guarantees they can offer as insurance contracts, Canadians can invest their money into an Annuity or a GMWB/GLWB (Guaranteed Minimum/Lifetime Withdrawl Benefit plan) and know they will have a steady stream of income for the rest of their life.

Investment products produced by insurance companies you can buy from a life insurance broker are:

• GICs (Guaranteed Investment Certificates)
• Accumulation Annuities (like a GIC but an insurance contract with a named beneficiary)
• Segregated Funds (pooled investments like mutual funds but with a death benefit and maturity guarantee)
• GMWB/GLWB – allows you guaranteed income with possible upside when the stock markets go up
• Annuity – guaranteed income for a term or the rest of your life for a heaped deposit

We hope you enjoy our Insurance Industry Investment Video.

Transcript of Insurance Industry Investment Products

You have a lot of choices when it comes to investment products. You may already have well-known investment products like Mutual Funds and GICs.

 

But did you know that Life Guard Insurance offers a wide range of investment products produced by insurance companies?

 

Many are similar to well-known investments. Some are exactly the same. And some are unique, and only available through an insurance contract.

 

The first type of investment is Guaranteed Investment Certificates or GICs, also called Term Deposits.

 

A GIC is a fixed-term investment that pays a guaranteed interest rate until it matures. These are among the safest investment products.

 

The return depends on prevailing interest rates and how long you invest – three months, one year, two years, five years and up.

 

GICs are guaranteed by Assuris for up to $60,000, or 85% of the promised guaranteed amounts, whichever is higher.

 

Second are Accumulation Annuities — a guaranteed investment very similar to GICs.

 

Because Accumulation Annuities are offered only by a life insurance company, they have different guarantees.

 

They also have the added benefits of a beneficiary designation and potential creditor protection.

 

Third is a Segregated, or Seg Fund. This is like a mutual fund — a pool of investors’ money managed by professionals to provide a good return over the long-term.

 

Seg Funds are actually insurance contracts with two components: an investment that produces the return, and an insurance contract that covers the risk.

 

Unlike mutual funds, seg funds guarantees from 75% to 100% of your principal will be available upon maturity.

 

Seg funds also offer creditor protection and allow you to name a beneficiary to avoid probate and legal fees.

 

The next investment is Guaranteed Minimum or Lifetime Withdrawal Benefit Plan – GMWB or GLWB. This investment product guarantees you will never lose the principle you invest and you will have a steady stream of income throughout your retirment.

 

These have been very successful helping Canadians transition from saving for retirement, to generating income in retirement.

 

Both offer a guarantee on the withdrawal of 5 to 7 percent of their portfolio each year.

 

The GLWB is a lifetime benefit, while a GMWB is a benefit for 15 to 20 years.

 

And finally, an Annuity is an excellent income generating investment product.

 

Simply put, an Annuity is a contract between you and a life insurance company.

 

You invest money. The insurance company provides you with a steady income for a fixed term or the rest of your life.

 

Annuities are a popular alternative to Registered Retirement Income Funds, especially for people in their later years who no longer want to follow their portfolios or take any risk.

 

Your annuity income will depend on the amount you invest, the interest rates at the time you purchase the annuity, your gender, your life expectancy, and your age at the time you bought it.

 

As you can see, there are many choices for investing your money to create income and wealth.

 

Life Guard Insurance has a network of professional brokers that can answer your questions and help you decide which investment products might be right for you. Call us today for all your investment needs.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Insurance Industry Investment Products would be very much appreciated.

Disability Insurance Income Protection Important to the Super Rich

Even being with financial independence, Sydney Crosby bought disability insurance

In the last day or two it has been all over the news that Sydney Crosby, the world superstar of hockey and one of Canada’s favorite sons, might have to retire from the game and claim on a massive disability insurance policy he bought – $20 million benefit. Upon hearing this story I immediately thought Sid the Kid was very smart to purchase disability insurance to protect his income. Then, after hearing he paid $1,000,000 for the coverage, all up front, I began to question if this was a wise move with his money.

You see, Sydney Crosby is a wealthy, superstar hockey player. He is the face of hockey, both in Canada and in the more lucrative US market. I’m sure, even if he is forced to retire because of continuing concussion symptoms, he would have a great career inside the NHL, and his endorsement deals would go on for many more years before his bankable name fades. Why then, being already financial secure and with bright future prospects even off the ice, would Sydney Crosby spend $1 million to buy disability insurance? This article works through some of my thought process of whether or not it is worth it for Sydney to buy the insurance and how his income protection policy compares to personal income protection available to regular working Canadians.

Crosby’s policy was very limited compared to personal disability insurance

Let’s look at Sydney’s actual policy. It seems to be very limited in nature. Not everything is clear from the news reports on how the policy was designed, but one thing is: Sydney’s disability must be TOTAL and IRREVERISBLE so that he never returns to the game of professional hockey once retiring from the NHL. If Crosby is forced to retire due to a disability, his benefit ($20 million) would only be his if he never returns to hockey again. If, somehow, medical advances and recovery treatments allowed Sid the Kid to return to playing professional hockey in the NHL, he would have to pay back the entire $20 million benefit.

What we don’t know is if the condition causing the disability had to come from an on-ice accident, or if he was covered 24 hours a day, both on and off the ice. We also don’t know if he was insured against illnesses, like cancer and heart disease, or was the coverage just accident related. These would also be limiting factors if they were part of the policy.

Simply because of the dangerous nature of professional sports, insurance companies design specialized insurance products for pro-athletes making the mega-salaries. These are not the common off the shelf disability insurance policies that regular Canadians can get. And, quite frankly, they are more expensive for the amount and type of benefit the person is getting.

As a comparison, a 40 year old man in good health and a non-smoker, needing $5,000 of tax free income from a disability policy (personally owned) would pay around $200 per month for a top of the line, professional disability insurance policy. The type of benefit on this plan would cover:

• Disability from both injuries and illnesses
• Disability benefit of $5,000 per month payable to age 65
• Coverage for your regular occupation through to age 65, so the insurance company can’t force you back to work flipping burgers in McDonalds to get you off the books
• Coverage for total disability and partial disability, meaning you could still receive half your benefit even if you were working part-time
• Ability to go on and off claim with multiple disabilities or recurring disabilities throughout your life
• Premiums locked in and guaranteed never to increase

There are even more bells and whistles that can be added to a personal/professional disability insurance plan that would make the benefits much more valuable than Crosby’s policy.

Total cost of Sid’s policy is similar to personal disability insurance, but all up front

Sydney Crosby had to fork over $1 million, up front, to get his disability insurance coverage. That is a hefty price tag to pay for insurance that, if you’re lucky, will never pay out a dime. Only if he is forced to retire from the game and career he loves will he see his benefit of $20 million. A sad scenario, but typical of all disability insurance claims. So, let’s look at this with some basic math (no present/future value of money calculations thank you – this is supposed to be understandable).

Sydney Crosby spent 5% of the total benefit up front to have disability insurance of $20 million. Does personal disability insurance cost the same, more, or less? Taking the example above of $200 per month for $5,000 coverage and we can quickly see this man is paying 4% of the cost of the benefit for a much more comprehensive policy. AND, our 40 year old man does not have to pay everything up front. He pays installments over time. If he ever did become disabled, his premiums would be waived until he is able to return to work. If he never returns, his premiums are gone forever.

Let’s take an example. Our 40 year old man buys his disability policy and pays $200 per month for benefits. At age 55 he becomes permanently disabled for the rest of his life. How much did he pay in and how much benefit will he get? He has contributed $36,000 for his first 15 years of coverage. At age 55 he will receive benefits for the next 10 years, until age 65. He is then paid out $600,000. His total cost to benefit ratio in this scenario is 6%. Not a bad investment to have 10 years of lost earnings replaced for only 6% of the total value of those earning. We only realize the true value of insurance at claim time – before that it feels like a monthly bill.

Income protection is worth the cost, even for rich people with financial independence

On reflection, Sydney Crosby did a very smart thing. If he is forced to retire because of his concussions, he will receive the largest disability insurance payout in NHL history. He doesn’t really need the money to live, but he is liable to lose his $7.5 million per year salary. Sid has only played 7 years in the NHL. Gretzky played 20 NHL seasons and Bobby Orr only 9 before knee injuries forced him out of hockey.  His $20 million payout only covers about 3 years of his gross income as a player. Sid is still potentially losing 5 – 10 more years of NHL mega-salaries, which could add up to over $70 million.

Who knows how long the endorsement deals will last. Who knows if he will suffer from concussion symptoms his entire life and never able to hold down a regular job. Who knows if endorsement deals will dry up over night. Who knows, who knows, who knows! And that is why you buy disability insurance. Because your continued income is just too valuable to gamble away, and your whole future depends on your ability to earn.

Have you taken steps to protect your income?

For most people in Canada, continued income is even more valuable than it is to Sydney Crosby. Unless you are independently wealthy, able to retire comfortably today, you need income. And what if that income is at risk every day you walk out your front door? Does your employer offer comprehensive disability benefits? Are you self employed without coverage? How long could you last financially if tomorrow you couldn’t go into work, and were disabled indefinitely?

At Life Guard Insurance we have insurance brokers across Canada who can design a disability insurance plan to protect you income and lifestyle. Contact us today for your personal disability insurance income protection plan.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about Sydney Crosby’s disability insurance policy would be very much appreciated.

Getting Instant Life Insurance Quotes has Never Been Easier

Easy Access to Instant Life Insurance Quotes in Canada

It has never been easier in Canada to get free, unfettered access to instant life insurance quotes than with Life Guard Insurance. Unlike most other websites in Canada, Life Guard Insurance never asks you for your name, phone number and email address just to run a simple online quote. We know that many Canadians are just browsing, and would like to do their shopping without being bothered by sales people. That is why we don’t put barriers in your way to getting as many instant life insurance quotes as you want.

Think of it like shopping in an electronics or clothing store. There is so much to see and take in you just need some time to browse around and get a feeling for the merchandise and what you are looking for. People walking through the doors of a store might come in different categories:

• The casual shopper: who is there just to browse around and isn’t likely to buy anything today.
• The deal shopper: who is looking through the stock, and might buy today if they find a really good deal.
• The confused shopper: who has a problem and thinks there might be a solution in the store, but doesn’t know what that might be.
• The motivated shopper: who knows exactly what they want and flags down a sales person the minute they walk in the door to get in and out of the store ASAP.

The same goes online when people are visiting the website. We feel that running instant life insurance quotes could fit into any of the four shopper categories, and really only the last 2 are looking for immediate service.

Doing multiple instant life insurance quotes

Imagine you need some life insurance. You might not be sure how much you actually need, but you want to see how much it costs for different amounts of coverage. Then you see different types of products you can quote – Term 10, 20 and 30 or Term 100 and even Whole Life Insurance. Hummmm. Maybe you want to get many different quotes to see what the price differences between the products are.

If you were using a life insurance website that asked for your name, phone number and email address each time you ran a quote that could get very annoying. Also, the insurance company on the other end of the website now gets multiple hits from you checking different products and amounts of life insurance. You could get phoned (tele-spam) and emailed (email-spam) over and over again, just because you were doing multiple comparison quotes.

Wouldn’t it be nice to know you can use an online system, like our Quoting Tool at Life Guard Insurance, as much as you want and never enter your personal information and never be marketed to just for browsing online.

After you’re done quoting we would like to help if you have questions

At Life Guard Insurance we have life insurance brokers across Canada ready to help you, if you ask. Just like in that store above, there are lots of sales people hanging around waiting to serve you. All you have to do is ask. We provide a contact form right on the Quote Centre webpage, or you can use one of our many other contact forms on the website – or just call us at 1-877-811-4043. We can connect you with a professional life insurance broker in your local area who can help find you the most cost effective and highest value life insurance policy to meet your needs.

Limitations of Instant Life Insurance Quotes Online

There are a number of limitations to using the online life insurance quoting tool. It isn’t the same as speaking with a licensed life insurance broker who can customize a life insurance plan for you and your family. Here are some of the limitations you might face:

• Cannot show joint life insurance policies or multi-life policies which are cheaper than individual plans
• Cannot show universal life insurance quotes because they are too complicated
• Only simple life insurance plans can be quoted, so no:
  • Disability Insurance quotes
  • Critical Illness Insurance quotes
  • Long Term Care Insurance quotes
  • Complex Life Insurance quotes
  • You won’t see the cash values of permanent life insurance quotes online, so you can’t really compare apples to apples

These problems are easily remedied. You can use our specialized online quote request forms (linked to above) of you can contact us to be connected to a local life insurance broker who can get you the customized quotes you need when shopping for life and health insurance online.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about instant life insurance quotes online would be very much appreciated.

Video about Estate Planning in Canada

How legal council, professional accountants and life insurance help with estate planning

Our latest video about estate planning shows how, through preparation and forethought, you can be prepare for the eventual costs of death – taxation and final expenses. Depending on the value of your estate there are major tax consequences at death, which can be dealt with through drafting and executing an estate plan. Also, putting in place a legacy through your estate plan can make sure loved ones are looked after, charities or organizations you support are given funding, and business continuation plans can be fulfilled.

Proper estate planning involves many important dosuments:

• A Will to make sure your wishes and desires are fulfilled after your death.
• A Power of Attorney to make sure you personal and business affairs are properly managed if and when you can not longer look after them yourself.
• A Personal Health Directive to tell your family and medical professionals what level of care you want if you are so ill you can no longer communicate your wishes.
• Life Insurance Policies to make sure at death that tax free cash flows into the estate to minimize the tax burden and/or to named beneficiaries and fulfills your wishes.

This video will help you understand the many things you should think about when designing an estate plan, and to make sure you have all the pieces in place, with the help of qualified professionals, to make sure your estate is intact and passes to those you want to give it to.

We hope you enjoy this 3 minute video.

 Transcript of Estate Planning in Canada

They say there are two certainties in life: death and taxes.

 

You can’t escape them, but you can help your family deal with both issues… through Estate Planning.

 

An Estate plan lets you decide while you are healthy, how, when and to whom, the proceeds of your accumulated wealth will be distributed.

 

You probably know you need to have a Will. Along with that, your estate plan package includes a Power of Attorney, Personal Health Directive and Life Insurance Policies.

 

But these are only one part of the puzzle you should solve for your family now, so your final estate settlement will go as smoothly as possible?

 

There are many pitfalls that can get in the way of fulfilling your final wishes:

 

Things like Taxation…Family conflict over your will…Excessive legal costs …Double taxation… and other legal and tax issues.

 

To design an estate plan that will work for you and your family, you need the help of several professionals:

 

A lawyer with estate experience, who knows the legalities of wills, powers of attorney and personal health directives.

 

An accountant familiar with estate taxes.

 

Brokers with Life Guard Insurance can refer you to the best Estate & Tax Lawyers and Accountants in Canada to assemble your estate planning team.

 

Your insurance broker also plays a significant role in your final Estate Plan, to help you optimize your wealth and the legacy you leave behind to your loved ones or charitable organizations you support.

 

An exempt insurance policy is the most cost effective way to create tax-free cash flow at death.

 

This easily accessible cash is very beneficial during settlement of assets. Life insurance proceeds can be used to pay off the final tax bill to the estate and preserve the wealth in the estate.

 

Life insurance proceeds can also be used to fund charitable donations through the estate, which creates very favorable tax deductions.

 

It is also a way of moving wealth to a direct named beneficiary without public disclosure of assets through the will and wealth losses due to legal, executor and probate fees.

 

Take a look at the list of ten estate planning tips on our website so that things go smoothly for your heirs later on.

 

Do you have a solid estate plan in place? If not, or if you would like a thorough review of your estate plan, contact Life Guard Insurance.

 

 Life Guard Insurance is in partnership with a network of professional life insurance brokers across Canada. We can put you in contact with an insurance broker in your area who will give your unique situation the special attention it deserves.

The video was produced by Life Guard Insurance and posted by +Mitch Reynolds. If you found the video interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this video about Estate Planning in Canada would be very much appreciated.

What Are Your Benefits To Working With A Life Insurance Broker?

Life Insurance Brokers are your gateway to the Canadian insurance market

When choosing where to buy the life insurance you need, you have probably considered speaking with a life insurance broker. There are many ways to buy life insurance in Canada, including captive agents from one particular life insurance company, a call centre from a bank owned life insurance company, or even signing up for coverage from a mail-out offer you received.

In this article I will describe how a life insurance broker can provide a lot more benefit to you than the other sales channels, and important things you need to know, like how they get paid and the level of service you should expect from a professional life insurance broker.

What extra value do life insurance brokers bring?

A life insurance broker first and foremost represents all the life insurance companies in Canada equally, and holds no particular loyalty to one company over another. Their first priority and loyalty is to their clients. Your life insurance broker can shop the entire Canadian life insurance marketplace to find you the best value on insurance. By best value I mean there is a balance between low cost premiums, high cash values, length of term required, certain attached benefits to the plan or valuable optional riders than can be added to customize your insurance. For life, health, disability, critical illness and long term care insurance, your life insurance broker can go shopping to find you some real value, and design a customized plan just for you.

There is another very valuable piece of the puzzle. Because a life insurance broker has access to all life insurance companies in Canada, they know which companies are willing to take on certain risks. Height and weight can be treated more strictly by insurance company X (resulting in a premium increase for the policy) while insurance company Y might take the same person as a standard rate for insurance. Many medical conditions, like high blood pressure and cholesterol, diabetes, prior injuries to parts of the body (could result in an exclusion for disability insurance), or many other medical conditions will be viewed differently by different insurance companies. You life insurance broker will know, or can enquire, which insurance company will treat your medical condition more favourably. This knowledge alone, and the ability to shop around, could save you thousands of dollars over the years.

How do insurance brokers get paid?

I think this is an important question. Your life insurance broker will not ask for payment for the advice they are giving you. When they collect money from you, it is for the life insurance company that they are placing your life and/or health insurance policy with (all cheques should be made out to the life insurance company and never be payable to the broker directly). So, if you aren’t paying them for the service then the insurance company must be. Life insurance brokers earn commissions from the insurance company they sell you a policy with. These commissions are proportional to the size of the life insurance policy you are buying and the amount of premium you pay. So, if you are buying a large life insurance policy that is costing a lot, the life insurance broker will be making a large commission on the sale.

The amount of commission varies between companies and between insurance products. Usually permanent life insurance has a higher commission rate than term life insurance. Some health insurance policies, like prescription drug and dental plans, pay a very small up front commission but pay higher, steady renewal commission each year so long as the client (you) keep the insurance in force. Most life and health insurance policies pay the life insurance broker a “heaped” commission in the first year and then a small renewal each year afterwards (usually between 3 – 5% of your annual premiums) to provide ongoing service to you for the policy.

So, your life insurance broker does get paid more to sell you a big policy. If this is a concern for you then you need to make sure you are speaking with a life insurance broker you can trust. Here are some warning signs to look for when any insurance broker or agent is more interested in their commission than in your needs:

• Do they start talking about products and solutions before they get to know you?
• Is the first thing they want to tell you about a permanent life insurance policy with a big investment and high cash values?
• Do they conduct an insurance needs analysis to make sure you have the right amount of insurance, or do they pull numbers out of the air and start quoting you prices?
• Do they take the time to get to know you and your situation before talking about product, or do they launch directly into a sales pitch and give you quotes and illustrations?

I think you get the idea. A good life insurance broker will get to know you, your needs, the financial risks you face, etc. From a good understanding of you and the needs you have, they can recommend solutions that make sense to you and are the right fit for:

• your immediate risks
• your long term goals
• your investment and savings plan
• your need for tax planning
• your estate and legacy giving plans

You’ll know if it’s the right advice for you, because you’ll say, “he/she gets me and this will solve my needs.”

Ongoing service from your life insurance broker

You should expect to be able to reach your life insurance broker anytime, either via email or phone. They might not be available to talk after working hours, but just leave a message and they will get back in contact with you the next day. Remember, your life insurance broker is being paid ongoing renewal premiums to take care of you. These premiums plus and future life and/or health insurance you might need will all pay your life insurance broker some money.

A happy client is very valuable to a life insurance broker’s business because they will buy their future life insurance from the same broker and they might refer their friends and family to the broker to also become new clients. I shake my head when I hear of independent life insurance brokers providing poor ongoing service to their clients, because in the end it is only the broker and their business that is being hurt. You can always move your insurance policies to a new broker who is willing to provide good ongoing customer service.

Life Guard Insurance can find you the best life insurance broker

Life Guard Insurance is partnered with independent life insurance brokers across Canada who are ready to help you. We only partner with the best advisors, who are highly trained, experienced and have a strong track record of providing excellent customer service to their clients. Contact us today, and we will connect you with a local broker in your area you can trust.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about what a life insurance broker does for you would be very much appreciated.

Review of the Types of Life Insurance Available in Canada

Understand the different types of life insurance to choose from

If you’re in the market to buy insurance in Canada you should really understand the four basic types of life insurance available. This article will give you a brief and clear understanding of the four major types of life insurance you might buy, the differences between policies, and the advantages of each.

You should keep in mind that the type of life insurance you buy today should solve your immediate risk needs (how much financial risk are you and your family exposed to) and be flexible enough to adapt to your changing needs in the future. This article won’t answer all your questions, but it will be a good overview, and you can always dig through our Canada website to find out more about the different types of life insurance.

Term Life Insurance

Term life insurance is the most basic form of life insurance in Canada. It is also the most affordable. With term life insurance you are “renting” your risk protection for a certain number of years (the term of the policy). The price is determined by the likelihood that you might die within that term. The term number of years on policies is usually 10 or 20 years, but you can also buy policies with a 30 year term. The longer the term you buy today, the more expensive the policy will be.

At the end of the term (say after 10 years on a Term 10 policy) your policy will automatically renew. That is, your policy will become more expensive and you will have the choice to keep the policy or not. The new premium at renewal is very high, and much more expensive than buying a longer term insurance contract today. If you bought a Term 10 policy, and kept it for 20 years, paying the higher premium for the last 10 years, you will probably pay more than twice the cost than if you just bought a Term 20 policy today. So, when buying Term Life Insurance, buy the term you need today and it will save you money.

Term life insurance is best used for protecting for short term needs, like paying down a mortgage or the financial cost of raising children. Your temporary or short term financial risks are most affordably covered with Term life insurance.

Term 100 Life Insurance

Term 100 life insurance is different than normal term life insurance. Term 100 is actually a permanent life insurance policy because it will be with you for the rest of your life, and will pay out a death benefit. Most Term 100 policies in Canada have no cash value attached to them (some do have a cash value component to them but are more like whole life insurance). The premium or price for Term 100 life insurance is level for the rest of your life – so the price you pay today will be the price you pay forever, no matter how long or short you live.

The advantages of Term 100 life insurance are that it is cheaper than most traditional permanent life insurance policies. You don’t have to spend as much money on premiums, which allows you to invest into other products like RRSPs and TFSAs. If you are looking for something permanent, simple, affordable and which doesn’t act like an investment policy, check out Term 100.

Universal Life Insurance

Universal life insurance is the most flexible and most complex type of life insurance in Canada. It offers you many choices to design a policy that will perform for you just the way you want it to. You can choose either increasing premiums or level premiums for life (like a Term 100 cost inside your universal life policy). You can invest additional money into the policy fund, up to a prescribed maximum, and get tax sheltered growth. You can also choose the types of investments you would like to have inside your policy fund, much like designing a mutual fund portfolio.

The advantage with universal life insurance is that it has the potential to perform very well, if market returns are strong. There is also risk that losses in the investment markets (which your policy fund is attached to) will lose you money and you might have to pay more premiums later in life. If markets perform well over the long term you would see a large tax sheltered profit inside your universal life insurance policy. It therefore acts as both risk protection and a long term investment plan.

Whole Life Insurance

Whole life insurance is the oldest and most traditional type of life insurance policy across Canada. Whole life gives you a set and guaranteed premium for the rest of your life, or you can quick pay the policy in 10, 15 or 20 years. There is a guaranteed cash value inside the plan so you know it will always have equity for your premium dollars invested. Whole life insurance also pays dividends (like profit sharing), so you will have a higher cash value than the minimum guarantee, and you could even have a growing amount of life insurance.

Whole life insurance offers people in Canada a strong, stable and proven long term performance investment policy with guarantees.  The cost for whole life insurance is higher, but you know you will never lose money, will always have equity and you will never pay more: simple, straightforward and guaranteed with the longest history of strong investment performance in Canada.

Life Guard Insurance can help you chose the type of life insurance that is right for you

Contact us, and we will connect you with a professional life insurance broker in Canada who can show you the different types of life insurance, and help you design a plan to meet your needs and your budget.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about the 4 main types of life insurance in Canada would be very much appreciated.

The Life Insurance Checklist for Canadian Shoppers

A Term Life Insurance Shopping Checklist

When shopping for term life insurance, you want to find the right amount of insurance coverage at a reasonable price with an insurance company you can trust. But for many people, getting started is the hardest part. That’s where the following Life Insurance Checklist from Life Guard Insurance can help.

1. What you would like your policy to achieve?

Ask yourself what it is you want your life insurance to do. For example, do you want to have insurance coverage that will:

• Pay funeral arrangements?
• Pay the outstanding balance owing on a mortgage and other debts?
• Offset the loss of your income? And if so, for how long?
• Contribute to the future education of your children?
• A combination of all or part of the above?

Knowing what you would like to accomplish with your life insurance policy and approximately how much you need to achieve these goals will help you determine how much life insurance you should consider purchasing. Our Life Insurance Needs analysis calculator is available to help you put a dollar value on the amount of coverage you need.

2. Who would you like to insure under the life insurance policy?

Most insurance companies offer a variety of life insurance products to suit your lifestyle and family needs. You can get an insurance policy on your own life, or you can get one policy for both you and your spouse (called a joint-life or multi-life insurance policy). There are usually discounts for combining life insurance coverage for joint or multi-life policies with the same life insurance company.

3. How long will you need life insurance?

Using a crystal ball to see the future isn’t necessary, although you should use a reasonable estimate of the length of time you will need life insurance. For example:

• When will your mortgage be paid off? The amortization period of your mortgage will often determine how long your term life insurance policy should be.
• When will your children be finished school? One day they’ll finish their education and having enough life insurance coverage to pay their educational expenses won’t be necessary.
• When are you planning to retire? You will have less income to replace and have built retirement savings at that time.

Knowing how long you’ll need life insurance coverage before you begin shopping will ensure you’re comfortable with the life insurance product you end up purchasing. Our instant online life insurance quoting tool can show you term 10, 20 and 30 year plans and even Term 100 life insurance for permanent coverage.

So now that you’ve got the how much, who and how long questions answered, you’re ready to shop.

1. Compare life insurance quotes from multiple companies:

It pays to shop around because life insurance rates can vary considerably depending on the product you choose, your age, and the amount of coverage you request. This is the easy part, because with life Guard Insurance you can compare all life insurance companies with an instant online life insurance quote anytime. The results will display the top ten life insurance companies in order of least to most expensive policies.

2. Which life insurance rate has been quoted – standard or preferred?

There are two basic life insurance rate groups you should know about when shopping for life insurance coverage: standard rates and preferred rates. Standard life insurance rates are the rates the majority of Canadians qualify for, while about 30% of the population is eligible for preferred rates.

Preferred life insurance rates are typically offered to very healthy people and means you may pay a smaller premium than most. Usually preferred rates are offered only once the results of the medical information and tests are known. It will depend on your blood pressure, cholesterol levels, height, weight, and family health history. But preferred rates are worth it. They could save you up to 30-35% off your quoted premium.

When comparing prices, make sure you’re comparing ‘standard to standard’ or ‘preferred to preferred’ life insurance rates. If you’re not sure, ask our brokers. It would be disappointing to find out you were quoted preferred rates at the beginning, only to find out you don’t qualify for them later. We suggest you quote standard rates and hopefully you are pleasantly surprised with a discount.

3. Review the life insurance broker’s availability:

How easily can you get a hold of the broker? What are their hours of operation? Whether it is through their website or telephone, the life insurance broker should be easily accessible to you should you ever have questions or need to speak to them about a change in your life insurance needs. All life insurance brokers partnered with Life Guard Insurance are local to your area and are available to help you in person, over the phone or via email.

4. Review the medical information required to obtain the policy:

Typically the more medical information you provide, the better the price. For a policy that asks few or no medical questions, you can bet the premium is higher for the same coverage then a plan asking for more information. Depending on the company, your age, and the amount of coverage you want, you could be asked to provide blood and urine samples, do a blood pressure reading, etc. This is called a paramedical exam, and a nurse will visit at no cost to you to complete it.

5. Consider a life insurer’s financial stability and strength:

A company’s financial stability is something to consider if you are planning on making a long-term purchase like life insurance. There are organizations out there, like A.M. Best, which evaluates insurers and provides a rating on their stability and strength. Also, all life insurance policies in Canada are backed by Assuris for consumer protection.

6. Ask about renewal options and requirements:

Once the initial premium is set, it is usually guaranteed for the length of the policy (often 10 or 20 years). But what happens when the policy expires? Most policies are renewable until you are 70 or 75 so don’t forget to ask your broker if you will have to take a medical to renew your policy. While your premiums will be higher on renewal, find out if they will also be guaranteed to remain level for the second term of the policy.

7. Confirm the policy can be cancelled without penalty:

Most term life insurance policies can be cancelled at any time without penalty. Make sure to check with your broker to see if the life insurance company has any unusual cancellation policies.

8. Consider the conversion options and restrictions for the policy:

As your life changes so do your life insurance needs and you may want the option to convert your coverage some day.

To convert a term life insurance policy means to transfer all, or part of the death benefit of the policy into a permanent life policy without a medical. For example, say you originally bought a term policy to protect a mortgage and children. Once the mortgage is paid and the child have grown, you might find it desirable to convert the policy into one that will give you a new level premium for the rest of your life, and a death benefit that is guaranteed not to expire as you age.

When you purchase your life insurance policy, find out if there are any limitations on your age at the time of conversion. In most cases, you have the option of converting up until you are 60 or 65. As well, ensure you are given several options of the type of policies you can move into: the more the better.

Final tip – Life Guard Insurance can help with your life insurance checklist

If you need help shopping for or applying for term life insurance, our local life insurance brokers can assist you. We have independent life insurance brokers across Canada who can find you the most competitive price for term life insurance and can walk you through the life insurance checklist so you know what you’re really buying. Contact us today.

The article was written by +Mitch Reynolds. If you found this article interesting or it made you think, please feel free to share your comments below. Liking us on Facebook, giving us a +1 on Google or Tweeting this article about a life insurance checklist would be very much appreciated.