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. 

Longer term, term.

Term insurance has a solid place as part of most Canadians' financial portfolio. The amount of protection that can be offered at reasonable premiums for short periods of time should not be overlooked. Specific needs can be covered with the various types of term offered. Mortgages for example tend to run for 20 or 25 years, and when the mortgage is over, that particular need is also gone.

Common to Canadians is the popular 10 year term insurance. Premiums are usually guaranteed level for the first 10 years, then if the need continues and the client wishes to renew, the insurance is offered for a second 10 year period at a predetermined price. Older term policies however renew with the OLD rates books which were in effect several years ago.

Since the cost of “term” has come down in recent years, if one is “insurable” and willing to undergo common insurance related questions and testing, NEW term insurance rates can save you a lot of cash.

A typical 40 year old with an older 10 year term policy can save up to 30 or 40% by switching to a NEW 20 year term policy.

This is only an example, yet in most cases, clients can save lots of hard earned cash, and the savings can be used anywhere you want.

You can define your path

The Un-Sale

You won't find people lining up outside the offices of financial planners on Boxing Day. Likewise, Canadians won't be heading south of the border on Black Tuesday for a bargain on premiums. Insurance products never go on sale, and its due to their nature. It's not a consumer market of goods that needs clearance to make way for next season's merchandise.

It's about continuity, consistency and security.

That being said, there exists favourable times where one can take advantage of an opportunity. It is my personal ethics that define my approach to selling. I don't convince people of anything. I simply give them the facts, and if they are interested, I can sell it to them.

Currently the facts point to a window of opportunity in Critical Illness and Universal Life Insurance.

Insurance companies have to be very secure, and with low rates of return in markets worldwide, insurance funds have not achieved their projected targets over the last few years. Deductively, premiums will have  to rise between 15-17% next month, and thus are currently underpriced. This knowledge creates a "sale" of sorts, and we are happy to share this information with our clients.

Contact me for more at 1.902.444.7000 or visit my website here.

For more info, see this Financial Times article:

http://www.financialpost.com/opinion/columnists/time+insurance/5503230/story.html

Corry Collins - Inspirational Speaker & Financial Planner

Insurance and investment advisors are not created equal. I am a Chartered Life Underwriter, Chartered Financial Consultant, and a Certified Health Specialist with over 25 years experience. I am recognized as a world leading expert in the field of living benefits.I am a sought after speaker around the world, and work with my client in Nova Scotia.

Maritime Wealth Management Limited is a Nova Scotia based financial planning firm with offices in Halifax, Dartmouth, Bridgewater and Yarmouth. We are a devoted group of professionals who help clients navigate life's financial decisions by sharing ideas and creating solutions. We believe in long term relationships, effective communications, and simplicity of solutions.

Visit my websites to find out more at www.corrycollins.com or www.livingbenefitsatlantic.com