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THE DANGERS OF MORTGAGE LIFE INSURANCE!!!
Signing up for the Mortgage Insurance offered by your bank or mortgage broker may be the worst financial decision you ever make!
SAY NO TO YOUR BANKS MORTGAGE INSURANCE!.. Make sure you watch the disturbing investigation on CBC'S MARKETPLACE to find out why!
INSURANCE FAQ’S: Continued
11. How is Term insurance different from Whole Life insurance? Term insurance premiums start off low, but increase as the insured ages. Term insurance policies do not have a cash value. Whole Life insurance policies have a higher initial premium, but the coverage is level throughout the insured’s lifetime. Whole Life plans can often be paid-up in a limited number of years and have a built-in cash value.
12. What is Universal Life insurance? Universal Life insurance is an unbundled form of Permanent Life insurance, which means the life insurance and the investment component are separate. Most insurance companies allow the insured to choose from a wide variety of investment options and the investments can grow on a tax-sheltered basis.
13. Is Life insurance tax-free? Life insurance death-benefits are tax-free. the premiums on life insurance policies are generally paid with after-tax dollars, rather than pre-tax dollars. However, with Permanent Life insurance policies, there is cash value that grows (within the tax exempt limits of Canada) on a tax-sheltered basis. This money can then be used to offset future premiums. The net-effect premiums are then once again being paid with pre-tax dollars, rather than after tax dollars.
14. Why should I buy from F1RST CHO1CE Insurance solutions? F1RST CHO1CE Insurance solutions is committed to providing innovative and reliable insurance solutions. We have been in business for over 12 years and work with over 9 different insurance carriers that provide a whole host of term and permanent life insurance programs. We take a holistic approach when looking at your insurance needs and always try to exceed your expectations. We are also very active when you need us most – especially during the claims paying process – we walk the claimant through any necessary paperwork and follow up with the insurance company, making the process as seamless and as trouble free as possible.
15. How can I change my beneficiary? You would have to contact your insurance carrier or insurance agent to send you the necessary from. It’s generally pretty straightforward you fill in who you would like as beneficiary and sign off.
16. Will insurance company pay if the insured died outside Canada? Yes – the policy should pay out if you die outside Canada – assuming all questions were answered accurately and suicide was not commited in the first 2 policy years.
17. I have a term policy, does it just expire if i do not renew or do I have to cancel it? Can it be renewed without me signing any documents? Most Term policies renew automatically. The insurance company would require you to sign a letter to cancel the policy.
18. Will I be notified when my policy is going to expire and my rates change? Yes the insurance company should send you a letter notifying you of an increase in rates. Insurance companies also generally notify the broker of record of any major policy changes and he / she should also notify the insured. Having said that if your policy was bought direct and / or if your broker left the business this may not happen.
19. How long does it usually take for a beneficiary to get the death claim even after the contestability period is over and the requirements were already submitted? The amount of time can range from a couple of days to several months. If the insurance company suspects foul play or fraud they will likely write the insured’s doctor(s) for clarification.
20. If a person has quit smoking for a year, does it make a difference in the annual premium. Yes non smoker rates are significantly less than smoker rates.
21. Is there a certain amount of time a policy needs to be in effect before full death benefits are paid? Most life insurance policies in Canada pay out from day one – except in instances of suicide or if their is meaningful non disclosure on the application. Guaranteed issue policies (no health questions and no medical tests) have a 2 year waiting period on the death benefit and some Simplified Issue policies (3 to 12 health questions and no medical tests) have a two year waiting period on the death benefit.
22. When a blood test is done what are they testing for? Drugs? medications? medical conditions? The insurance company tests for a variety of things. Including blood sugar level and cholesterol. They can also test for drugs.
At F1RST CHO1CE Insurance Solutions were passionate about sharing our knowledge, experience and unbiased opinions with families and individuals that are looking for a trusted advisor to help them with their Insurance options.
ANY QUESTIONS?…Contact a Licensed Insurance Advisor today!