Personal Finance

Life Insurance Q&A - w/ FAQ Section

  • Last Updated:
  • Nov 10th, 2017 3:52 pm
Member
Sep 23, 2013
237 posts
110 upvotes
Windsor, Ontario
MayorOfToronto wrote:
Sep 4th, 2017 7:56 pm
I was sold into a Universal Life Insurance policy. I believe I'm paying more than I should and I could invest it myself instead of having the insurance company take a cut. The projections show it would be paid-up in 20 years but from what I understand, that is based on the performance of the investment portion of it.

I'm looking for something guaranteed that can be fully paid off within 20 years and will have a value consistent with inflation. Inflation is why I'm thinking of a par since it would allow me to use dividends to purchase additional paid-up insurance. I doubt that would be enough to cover inflation but it's something.
You're right, the money invested in a UL can cover the premiums if it grows enough. The problem with the investment side of a UL, is the MER, it's pretty high. The main thing I'm confused about is why get life insurance? Are you looking to leave money to a spouse or children? How much money? What would it be used for? All of your questions seem more so product based and not personal finance based. The reason I feel this is an issue it because getting insurance for the wrong reasons can bite you in the butt later on in life. I understand that you might not feel personal giving out more information on a public forum, but I recommend finding an insurance advisor (not the one pushing UL with you) and discuss these things. Get a proper financial needs analysis done before making any life insurance decisions.
Sr. Member
User avatar
Sep 24, 2006
544 posts
37 upvotes
Guelph, On
Question. While cleaning up the house as my dad went into the nursing home. I found an old insurance policy from 1972 put on me by my parents. I already have good life insurance in me. My dad has slight dementia and not sure if I can get power of attorney. Trying to now. But can I take a loan or cash it out. My dad would be able to sign things he is clear but what can I do. Thanks
Newbie
May 2, 2016
95 posts
54 upvotes
Customer service question:
I had a look on-line (google) and the life insurance companies pretty much all get bad customer service reviews.
Anyone recommend a good life insurance company to deal with, or are they all the same with regards to customer service?

thanks in advance
Member
Sep 23, 2013
237 posts
110 upvotes
Windsor, Ontario
anastasia1009 wrote:
Sep 11th, 2017 2:22 am
Question. While cleaning up the house as my dad went into the nursing home. I found an old insurance policy from 1972 put on me by my parents. I already have good life insurance in me. My dad has slight dementia and not sure if I can get power of attorney. Trying to now. But can I take a loan or cash it out. My dad would be able to sign things he is clear but what can I do. Thanks
It's going to depend on the policy. If it's a PAR whole life policy, universal life or Whole Life, there may be options for taking a loan or cashing it out. If the policy is that old and still in force, chances are it is one of the three. Also, if you have good insurance, you might want to look at a price comparison between cancelling some of the new insurance you have in force to save premium dollars rather than cashing out an old paid up one.
Deal Addict
User avatar
Sep 15, 2009
2700 posts
1002 upvotes
Toronto
Activate wrote:
Sep 11th, 2017 11:13 am
Customer service question:
I had a look on-line (google) and the life insurance companies pretty much all get bad customer service reviews.
Anyone recommend a good life insurance company to deal with, or are they all the same with regards to customer service?

thanks in advance
This is why I would look at the larger established companies whom have more funding for said departments. Further, if you work with an advisor (you should as there is no cost difference between going direct or through an advisor), you should be able to rely on him/her for most inquiries/policy maintenance, etc.

One thing I always tell my own clients is that if and when you need to make a claim or have a concern/admin situation - call me. I can get answers (and the right answers) quicker than most can get from simply calling customer service. Unlike through customer service where you are just a number, hopefully to your advisor, you are more than that.
Last edited by wesboag on Sep 12th, 2017 4:07 pm, edited 1 time in total.
Jr. Member
Feb 2, 2011
136 posts
4 upvotes
what difference does it make as to what broker or agent you choose? they all give the same prices and none has promos.

Can't find any sense or value the difference of a life insurance broker vs their peers.

can anyone shed value? Even if there was some promotion that would make sense....but no agent does their own promo...
Member
Sep 23, 2013
237 posts
110 upvotes
Windsor, Ontario
ediasn wrote:
Sep 16th, 2017 11:35 am
what difference does it make as to what broker or agent you choose? they all give the same prices and none has promos.

Can't find any sense or value the difference of a life insurance broker vs their peers.

can anyone shed value? Even if there was some promotion that would make sense....but no agent does their own promo...
If you can't tell the difference between sitting down between 2-3 different advisors, you're not sitting in front of the right people.

Let me edit this: OR you're sitting in front of 2-3 high quality advisors.
Deal Addict
User avatar
Sep 15, 2009
2700 posts
1002 upvotes
Toronto
ediasn wrote:
Sep 16th, 2017 11:35 am
what difference does it make as to what broker or agent you choose? they all give the same prices and none has promos.

Can't find any sense or value the difference of a life insurance broker vs their peers.

can anyone shed value? Even if there was some promotion that would make sense....but no agent does their own promo...
Further to Steve's comments, while the product offerings will be the same (assuming the broker, advisor, etc) is contracted with those carriers, unless the individual shopping for coverage knows exactly what type of coverage to buy and for how much, there can and is stark differences between the advice you will get. In a 100% commission based compensation field, there is a serious issue with biased advice and effectively conflict of interest. Trust and experience are crucial when it comes to a) helping a client and their family figure out exactly what their risks are (Death, Illness, Disability, Long term care, etc) and b) monetizing those risk through the use of a personalized needs assessment. While the former is relatively straightforward, the latter is not. Most people have no clue as to the impact of death, illness or disability on their family's well being. A good (and knowledgeable) advisor can uncover these risks and present strategies (including products) to mitigate these risks after conducting a comprehensive needs assessment. The issue is that not all advisors are good at the second part. Not all needs assessments are equal. You will want an advisor who is going to go that extra mile (or step) to do a through one, not just ask you 5 or 6 questions and arrive at some random sum to insure for.

The advisor ought to explain how they arrive at their recommendations and why - of course sticking within the clients budget. Further, there are an enormous number of products out there and from a multitude of carriers. Not all carriers are equal (price, customer service, underwriting, claims, solvency ratios, conversion options, etc). A good advisor can help steer you through the options.

As for promotions, we are effectively all paid the same in this industry when it comes to insurance. The carrier pays the same First Year Commission (FYC) to the broker/advisor/dealer, regardless of firm. The particular firm the advisor is with may also provide bonuses on top of this, but from my understanding (and at my firm) it is not tied to which company you choose to insure the client with. Agents/advisors/brokers are not allowed to do "promos" or provide kick-backs in the form of cash payments or otherwise. Its against our code of ethics. If a client or prospective client told me they would only do business with me if I would provide them with a gift or whatever they want to call it, I would tell them where to go...
Last edited by wesboag on Sep 16th, 2017 8:45 pm, edited 1 time in total.
Jr. Member
User avatar
Aug 11, 2011
175 posts
116 upvotes
Toronto
Looking to get Insurance for a senior Age 63 - just need something basic that will cover funeral costs etc. 25k-50k coverage most likely.
She Currently just signed up for Participating life insurance (Product Estate Achiever Pay to age 100) - but i think thats overkill since she only pays minimum into her rsps.

Thoughts?
Member
Sep 23, 2013
237 posts
110 upvotes
Windsor, Ontario
MikeTO2 wrote:
Sep 26th, 2017 2:05 pm
Looking to get Insurance for a senior Age 63 - just need something basic that will cover funeral costs etc. 25k-50k coverage most likely.
She Currently just signed up for Participating life insurance (Product Estate Achiever Pay to age 100) - but i think thats overkill since she only pays minimum into her rsps.

Thoughts?
When you say just signed up for the PAR, do you mean it's in force or she just applied? If someone is looking for a basic funeral plan and that person has not much saved up for retirement, PAR would not be at the top of my recommendations. This of course is going a minimal amount of information. If the PAR product had been in place for a while, there'd be a lot more that can be done. When it comes to final expenses, it's great to use insurance as a tool to pay if off, I'm just a little worried when I hear "senior citizen" and "low income" in the same breathe. It's important to prioritize things in this person's personal finances, unfortunately no one here can give solid advice on how to do that without a lot more information.
Jr. Member
User avatar
Aug 11, 2011
175 posts
116 upvotes
Toronto
SteveDfsin wrote:
Sep 26th, 2017 2:12 pm
When you say just signed up for the PAR, do you mean it's in force or she just applied? If someone is looking for a basic funeral plan and that person has not much saved up for retirement, PAR would not be at the top of my recommendations. This of course is going a minimal amount of information. If the PAR product had been in place for a while, there'd be a lot more that can be done. When it comes to final expenses, it's great to use insurance as a tool to pay if off, I'm just a little worried when I hear "senior citizen" and "low income" in the same breathe. It's important to prioritize things in this person's personal finances, unfortunately no one here can give solid advice on how to do that without a lot more information.
No just signed up for the par product (just applied). Not sure what she currently has - possibly whole life since she pays around 50/month for 25k coverage.

I'm thinking the best thing would be to keep that money and put it in rsp or some kind of savings - and im not entirely sure she needs life insurance at all - her kids can cover the end of life costs.
Member
Sep 23, 2013
237 posts
110 upvotes
Windsor, Ontario
MikeTO2 wrote:
Sep 26th, 2017 2:23 pm
No just signed up for the par product (just applied). Not sure what she currently has - possibly whole life since she pays around 50/month for 25k coverage.

I'm thinking the best thing would be to keep that money and put it in rsp or some kind of savings - and im not entirely sure she needs life insurance at all - her kids can cover the end of life costs.
For the life insurance, it's going to depend on when she got it, smoker rates, any other health issue. Look at the policy to figure out if it is WL, that's the surest way of knowing. IF it is a WL policy, the final expenses are basically covered, unless she wants an extravagant funeral. Planning for retirement should be key at this point, especially at her age. I really do hope she has more saved up.
Jr. Member
Feb 2, 2011
136 posts
4 upvotes
anyone know a good LIFE broker in or around Toronto /GTA?
Deal Addict
Jun 4, 2003
1291 posts
45 upvotes
Toronto
ediasn wrote:
Sep 27th, 2017 5:30 pm
anyone know a good LIFE broker in or around Toronto /GTA?
I have been a life broker in Toronto for the past 22 years and you can give me a try to see if I am good or bad. Professional designations I have acquired and hold are CFP, CLU, RHU, CH.F.C. and CHS. I have been in the business for 29 years altogether with first 7 years as a sales representative with Canada Life.
United We stand Victory in our Hand!
Newbie
Feb 6, 2011
71 posts
15 upvotes
Is Desjardins CI and Term Life Insurance a good insurance products? Which insurance company is better in terms of coverage, term/conditions, payout & affordability for CI and Life Term Insurance?
Also, anyone heard about SOLO Loan Insurance? any loan insurance to recommend?

Just need to have protection from mortgage 350K$. Thank you.

Top