Insurance for the Uninsurable

Life insurance is generally used to cover an insurance need that arises at the death of an individual immediately we think of insurance to pay a debt like credit cards or a line of credit or a mortgage. We also think of using insurance to replace one’s income so the family can maintain a specific standard of living.

But what happens if you are permanently uninsurable due to your health as many people are? Don’t stop looking for coverage we advise clients. While it is preferable to receive a death benefit at the time of your death, it is also possible to buy a JOINT and LAST survivor policy. In this case we join two people into one policy and in this J&L (Joint and Last) policy, a death benefit is paid following the second death, not the first. As such we combine the ages of the two lives, and come up with an Estimated Single Age.  For example, your father is 74 years old and your mother is 69 years old. Combine the two ages and we come up with an estimated single age of 62. Even if one of the two people are uninsurable, there is potential that a policy can be issued. The death benefit is paid following the death of the second person, and can be used for financial needs of the family, or the pay tax on unused RRSP funds.

This concept can be used in business, in families, and for parents, young and old.