Category Archives: Life Insurance

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20 year term life insurance (Canada)

Posted on: January 14th, 2020 by Glenn

20 year term is the most popular life insurance type in Canada, and the prices reflect that popularity. It’s inexpensive and lends itself well to premium comparisons using life insurance quotes. Definition: 20 year term life insurance is life insurance with a level death benefit and premiums that are level for 20 years. Canadian policies are generally guaranteed in that both the death benefit and the premiums are fully guaranteed for the life of the policy. At the end of 20 years, the death benefit remains level but the premiums increase substantially. This is called a renewal This process of …Read More

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Life insurance dividends

Posted on: January 13th, 2020 by Glenn

Life insurance dividends are a part of a class of life insurance polices known as ‘participating’. They’re participating because dividends are how you participate in the investment performance of the company. These polices are almost always whole life, so for practical purposes dividends are seen on participating whole life policies. What are dividends? The life insurance company takes your policy and the rest of the block and makes assumptions on investment returns, admin costs, and mortality. At the end of the year they compare their actual performance with expected, and if things are positive they issue a dividend – a …Read More

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Term to 100 (Canada)

Posted on: January 13th, 2020 by Glenn

Term to 100 insurance is an arguable hybrid of term life insurance and whole life. Whole life insurance (or permanent) is generally characterized by two attributes – coverage for life, and cash surrender values should cancel the policy. Term life insurance has coverage for a specific duration (less than life) and no cash surrender values. Term to 100 is a bit of column A, bit of column B. Like whole life, the premiums and the coverage is level for life. Like term life insurance though, there are no cash surrender values. Term 100 is basic – level premiums for life, …Read More

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10 year term life insurance (Canada)

Posted on: January 13th, 2020 by Glenn

One of the most popular types of term life insurance in Canada, 10 year term life insurance has premiums that are level for 10 years. After 10 years, a typical policy would remain in force and active, but with premiums that increase substantially. And so on, every 10 years until the policy expires. However at this point (at ‘renewal’) the premiums increase a lot – to the point where it would be unaffordable. Therefore a 10 year term policy is best for insurance needs that are only good for 10 years. When should you buy a term 10 life insurance …Read More

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5 year term life insurance (Canada)

Posted on: January 13th, 2020 by Glenn

5 year term life insurance is not readily available in Canada any longer. As far as I know, all companies have ceased offering it. It was originally a popular insurance policy – the goto for term life insurance. That’s because back in the day term life policies renewed at the same premium as someone who’d just taken a medical exam. You’d buy a 5 year term policy at age 30 say, then at age 35 the premiums would increase for another 5 years – but those premiums would be the same as someone who’d just passed a medical exam. Every …Read More

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Best type of term life insurance (Canada)

Posted on: January 13th, 2020 by Glenn

You want to look at three things when evaluating your choices for term life insurance policies. First, the duration or the ‘term’. Term life insurance has premiums that are level for a specified and predetermined timeframe – so a 10 year term has premiums level for 10 years; 20 year term has premiums that are level for 20 years, etc. You should select a term that matches closely how long you expect to need life insurance for. If you’re 30 years old and looking to insure your income through to retirement then a 30 year term or term to age …Read More