Category Archives: Term Life Insurance

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Buy term invest the difference

Posted on: January 16th, 2020 by Glenn

Be careful -read this before you buy life insurance as a result of this sales strategy. Buy term invest the difference is a strategy for people who have whole life insurance with cash surrender values. The basics behind the strategy is that you cancel the whole life insurance, take the resulting cash surrender value and invest it, then purchase a term life insurance. The idea while possibly valid, has some criticisms that are always overlooked with this is pitched. Interest rates shown on the investments are often optimistic to aggressive. Then those investments are compared to a cash value of …Read More

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Term life insurance vs Whole Life Cash Value

Posted on: January 16th, 2020 by Glenn

Stop – before you compare term vs whole life, you need to consider a more basic problem. Before we get the the nuts and bolts, I want to realign your thinking. Comparing these two types of insurance from the perspective of ‘which one should I purchase?’ is misleading. They are two different solutions to two different problems. Term life insurance has premiums that are level for a time period (called the ‘term’), after which point the policy is not really feasible. It’s best suited for people who need life insurance for a timeframe – while the kids are at home, …Read More

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Term Life Insurance vs Universal Life Insurance

Posted on: January 15th, 2020 by Glenn

Compare and contrast term life insurance to Universal life insurance, but before we do that let me provide an outline of the two different types of policies. Term life insurance has premiums that are level for a timeperiod (the term) then increase. At a certain age the policy expires. It’s about the purest form of life insurance you can get. No cash values, no investments, no bells and whistles. Universal life insurance is effectively term life insurance plus an investment side account strapped to the side. There are two basic types of term policies that form the base of universal …Read More

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Term Life Insurance vs Group Life Insurance

Posted on: January 15th, 2020 by Glenn

Having worked extensively with both term life and group life insurance in the past, here’s why you should keep your term insurance and not use group life insurance as a substitute. First, let me start off with a table comparing attributes. Here’s why you care about those attributes: Ownership. You have no control over the ownership of a group policy, it’s controlled by your employer. This means they can cease offering the coverage. They can switch companies to an insurer that has higher premiums. They can reduce benefits. All without consulting you. With an individual term life insurance policy you …Read More

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Term life insurance vs Mortgage Insurance

Posted on: January 15th, 2020 by Glenn

Don’t buy mortgage life insurance until you read this post! Before I get into details, let’s set the stage with a video from CBC Marketplace on the subject of Mortgage life insurance. I recently spoke to the agent in this video and he assured me that the content and concerns in the video are as relevant today as they ever were. Here’s a comparison of attributes of term life insurance and mortgage life insurance: Why do you care about these attributes? Underwriting. This can increase your probability of having a claim denied. With mortgage life insurance they do post-claim underwriting; …Read More

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30 year term life insurance (Canada)

Posted on: January 14th, 2020 by Glenn

30 year term life insurance Canada is a newer policy type (relatively speaking). It’s characterized by premiums that are level for 30 years and a level death benefit. Commonly both the premiums and the death benefit are fully guaranteed. At the end of the initial 30 years (at the renewal), 30 year term policies generally continue in force with the same death benefit, but at a much higher premium. Those increased premiums at renewal are so high as to be unaffordable. Therefore you should assume that a 30 year term policy is really only suitable for insurance needs no longer …Read More

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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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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