One type of insurance not discussed is Critical illness insurance.

critical illness coverage provides a lump-sum payment if you are diagnosed with one of the covered critical illnesses or conditions.

Pay out is up to $2,000,000

* Alzheimer Disease
* Aortic Surgery
* Benign Brain Tumour
* Blindness
* Cancer (Life Threatening)
* Coma
* Coronary Artery Disease Surgery
* Deafness
* Heart Attack
* Heart Valve Replacement
* Kidney Failure
* Loss of Independent Existence
* Loss of Limbs
* Loss of Speech
* Major Organ Failure on Waiting List
* Major Organ Transplant
* Motor Neuron Disease
* Multiple Sclerosis
* Occupational HIV Infection
* Paralysis
* Parkinson's Disease
* Severe Burns
* Stroke

The finances received could be used to:

* pay for the costs of the care and treatment;
* pay for recuperation aids;
* to pay debts off;
* replace any lost income due to a decreasing ability to earn; or even
* fund for a change in lifestyle.

Many people live years after Cancer or Stroke or Heart Attack as an example but their finances do not.

If you remain healthy you can get all your money back too!

I get so mad at fellow advisors with Sun Life and other companies who use concepts that don'work for one individual as a way to discredit the entire Insurance picture.

Term insurace works!!! Cheap, affordable, gives young families with limited income to have sufficient coverage to cover debt.

Critical Illness (ROPC 15 years) works!!! get sick ... here's your pay... don't get sick in 15 years... here's your premiums back in full thanks for being healthy

Whole Life works... I was diagnosed with cancer 3 years ago with no ability to buy any insurance... however my dad bought a Gaurrantted insurability option on a whole policy and now i can buy 50k every 5 years ... no health questions... I'm so thankful.

Is term for everyone... no... is it for someone...yes. Is WL for everyone... no... is it for someone ... yes...

One shoe fits all concepts are as narrowminded as the "advisor" that presents them.

Cheers Everyone

Definitely skip the mortgage life insurance. Do you really want to get your life insurance via an impulse buy like that? Take the time, shop it around.

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=======
Smith

The idea of buy term and invest the difference. In expensive mutual funds as Primerica has/is suggested sounds good. But where is the returns? Looking at a number of funds the last 3 plus years has been negative. For US funds over ten years it has been negative.

Whole life never has had a negative return in over 100 years!

This is not to say whole life is the best investment but if you like tax free growth and can use the money to buy other investments it looks good for the right type of person.

Terry H. Do you tell your clients that primerica has the highest term rates in the Industry, and their term goes up to high rates when it's up. Do you tell them that they have no option of converting if the become medically uninsurable ? And last but not least do you tell them that most primerica sales rep has another full time job....Still proud of what you do.....

J.T.A.

Common Misconceptions & Mistakes when buying Term Insurance

MISTAKE: Failing to buy enough insurance while you are still healthy.

Medical evidence is required when you buy life insurance. This evidence usually consists of a list of questions to elicit your medical history, a brief exam by a nurse, a blood and urine specimen and possibly a report from your doctor. If at a later date you decide that you really need more coverage, the process begins again. If your health has changed you may have to pay higher premiums.

MISCONCEPTION: Cheapest is the best.

That term policy premium might be cheap in year one. But most term policies renew at regular intervals (every 10,20 years) and the renewal premium rises at each interval because it reflects your new age.

In general, a 10 year term policy is the cheapest but by year 13 it is actually more expensive than buying Term 20. In other words, if you think you need coverage beyond 10 years, it is better to chose a 20 year term now.

MISTAKE: Failure to understand your options

So on each renewal the premium rises at each interval as stated above. But you do have options. Most term policies include a free option to convert your policy to permanent coverage before age 65. Converting to permanent coverage make sense especially if you have had a change in health. Even better, you will not require a medical to convert.

The types of permanent coverage eligible for conversion usually include whole life and universal life but these also vary by company. If you buy term coverage do so with a company that offers several options for the converted policy.

MISCONCEPTION: Buying through the internet is cheaper (no commissions to be paid)

Insurance comparison services on the internet say “buy direct and save money”. The fact is, you cannot receive a discount in the price of life insurance by avoiding a life insurance agent. Sales charges and costs (such as commissions) are built into the premium that you pay for any life insurance policy that you buy. You will be paying those built-in charges regardless of where you buy the insurance. Finding and using a local life insurance agent will not cost you more than dealing with someone in another city or province by telephone or mail.

MISCONCEPTION: Association insurance has cheaper rates.

Associations include organizations such as universities, credit card companies and consumer groups like CAA. Sometimes association rates are cheaper but in many cases the rates go up every five years. Associations are like groups where several insureds are lumped together and pay a premium relative to the group being covered. Even where limited medical questions are asked, the premiums reflect the inability for the insurance company to fully assess individuals and the group like rates is charged. Association groups also may offer very limited conversion opportunities. Therefore if you cancel your credit card or if you are no longer a CAA member you coverage is cancelled.

As a smart consumer, obtain an individual insurance quote and compare the products for price, renewal options and conversion options.

MISTAKE: failure to understand that buying term is like renting life insurance.

Permanent (whole life) plans are more expensive in the early years but the premium stays the same for the duration of the contract. Because you pay more in the early years, you have some equity (cash value) in the policy. If you decide to cancel the contract you get the cash value back. However, you have no equity in a term policy. You pay premiums applicable to your age and this rate rises at every scheduled renewal. Because you are paying the true cost of coverage, there is no equity in the policy. If you cancel the coverage 10 years down the road because the renewal rate is too expensive, then you walk away. Bottom line, you are renting coverage briefly and won’t have it when you need it or more importantly when your family needs it!

MISTAKE: paying your insurance premium on a monthly basis

The insurance company charges extra to those who pay monthly as they incur extra expenses to administer monthly payments. If you are able to pay the yearly premium it can save you up to 10%.

MISTAKE: paying extra for benefits (the frills) that you may never use

Waiver of Premium Benefit: the insurance company will waive the premiums if you become disabled. Few people understand that you must be totally disabled in order to be eligible. Also if you have term insurance the insurance company will usually pay only to age 65 while for some types of permanent insurance they will pay the premiums beyond age 65.

Guaranteed Insurability Option: In a nut shell you pay more now just in case you want to buy more insurance in the future without having to provide proof of health. It essentially insures your insurability. However, your premium for the new policy will be at current age rates. One more reason to buy all of the insurance that you need now and at your current age.

Accidental Death Benefit: This benefit guarantees that if you die in an accident, your beneficiary will receive an additional predetermined amount of money on top of the base policy amount Again, I’d say if you need accident coverage buy it rather than depending on an ADB rider hopefully supplementing the amount of coverage your family really needs now.

MISTAKE: buying coverage because no medical evidence is required.

This might sound appealing but in actual fact you will pay more for this insurance and the amount of coverage available will be limited. If you are healthy, take the time to prove it and pay premiums that truly reflect the good risk that you are.

MISCONCEPTION: the premium I see on the internet is what I get.

Insurance companies offer several classes of standard rates. Those in the top physical condition and with no risk factors will get the best rate. Premiums on the internet usually default to the top preferred category (the cheapest). However, keep in mind, only a certain percentage of applicants will actually qualify for the best rates.

MISCONCEPTION: waiting until you lose weight or stop smoking in order to get the best rate.

This is just procrastination. Yes, you may pay higher rates now but did you know that if you quit smoking or if you keep the pounds off for one year, you can apply to have your rate reassessed.

Terry,

Since you only sell Primerica why do they charge alot more for females? Why not offer other companies?

Here is an example:

Female Born June 15/1975
age 35 smoker

coverage Term 20
$400,000

Standard life $61.47
Equitable life $62.19
Desjardins $62.89

Primerica $122.08

J.T.A. I am quite amused at your comment regarding Permanent Insurance, "Whole Life". Do you tell ALL your clients that when they die they forfeit all their Cash Value to the insurance company? Do you tell them that when they want access to their savings, they have to borrow their own money? Do you tell them that when they remove all their cash value from their savings that the Insurance is cancelled. In other words they pay for two things and only ever get one.
Do you tell them All these facts? Still proud of what you do J.T.A.

I am quite amused by all the commentsfrom all regarding Insurance. I am an Advisor, I believe in first meeting my clients getting to know them and what their needs and expectations are. A needs analasys is very important to determine how much is needed, and how much each client can afford. I believe in both term and perm, depending on what you want your Insurance to do for you.Term is great for a short and limited time, ie: mortgage, loans and lines of credit, as perm is used for more permanant needs ie: taxes, final expenses and leaving a legacy. Permanant you have something to show for what you pay out, as term is like rent, you have nothing at the end. What everyone is forgetting is that Life Insurance is there to protect your loved ones in the case of an unexpexted death, to help with lost income, buriel, and raising your children, we pay car and house Insurance to protect them, why are we questioning our greatest asset our family and income.I am very proud of what I do, as I give peace of mind to many people.

Kerry,
Have you wondered why all the so called Financial Advisors recommend sitting down with them so that they can tell families what they need, vs recommending they become more educated about what they buy before they meet with these people??
They don't mind telling you that you are not qualified to give advice... what did they do before writing a couple of exams to become "certified"?
I don't have all the answers only questions??

Primerica Refounded!!
Obviously someone thinks Primerica's future is VERY BRIGHT!
http://www.theglobeandmail.com/globe-investor/markets/stocks/summary/?q=PRI-N

While I agree that you shouldn't buy Mortgage Insurance (not only for the reasons that you outline, but also for the fact that they underwrite for illness AFTER YOU DIE and only 1 in 4 mortgages actually get paid off - see the CBC's 5th Estate report on Mortgage Insurance from 2008), I think you may want to ask more questions of the potential buyers before making a blanket statement.

Life Insurance on kids is a great way to transition assets from one generation (parents or grandparents)to the next (kids or grandkids) without incurring tax or probate fees.

Whole Life insurance is NOT the same as Universal Life, or Variable Life Insurance. Whole Life has NO FEES associated with it (unlike UL) and could be a great fit to one's investment diversification strategy as it is predominantly invested in Fixed Income assets and generally has a much higher rate of return than current interest rates. The caveat is that it should be sold to the RIGHT individual, which is why fact finding is important.

It is unfortunate that much of the information you provided in your article is either erroneous or too general to be useful

Scott thanks for posting this ... "UL is like buying term and investing the rest in the same policy, you can pick what Equities or bonds or for the faint of heart GIC's you wish to invest..."
Well you know as well as I that it is not the same Scott. With UL Insurance you can invest inside the policy but... the client pays extra fees to have it inside the policy, they also pay a fee on the premium to keep it tax exempt. When the client wants to cash in their investment, even if it's in equities, it gets taxed as income!!! Some UL policies don't pay out the cash value PLUS the Investment!

Just make sure that when you make a statement Scott that you clarify all the facts.
Cheers Scott!

Again, readers of this blog you do your own due diligence and read many book regrding insurance. It's not that complicated!
The agents want you to think that they are the only ones who can understand this stuff and that you should believe anything they say!

Once again, these so called Financial Advisors rely on the internet which has absolutely no legal boundaries or ramifications for unjustifiable information. By the way Scott, if you have kids, be careful of the friends your kids might be conversing with on the net. They too, might be experts in their field! Books, Articles and Professional Programs all have to be screened for professional content, facts and have a legal sytem backing them up. Therefore, they cannot print or tell lies like the internet. CBC Marketplace, Fifth Estate,etc are all respected sources. What is your source of information? People are sick and tired of being fooled by people like you that have left our society of middle markets destroyed with your products and services. People just want someone they can trust, who has been where they are. Not some book smart intellect that thinks they know it all. Good luck with your Freedom 55 plan, or U.L plan or what ever the next great product that you dream up to screw the consumer! Keep it simple and listen to the real experts..... and obviously you are not one of them.

Scott,
It's interesting that when you worked with Primerica for numerous years you told people how bad Whole Life Insurace and Universal Insurance was. You held a license in the industry and you were certified. Now all of a sudden you change your tune... how credible is that?
You said, "Seeing they are not allowed to be members of Advocis (Professional Association for Financial Advisors)." Well there you go again, not telling the truth... Advocis is a voluntary membership that any licensed representive can join. They promote selling Whole Life and Universal Life insurance which Primerica doesn't agree with. You wouldn't join the KKK if you did't believe in their mandate would you Scott? Or maybe you would? Why don't you advise the readers to got out and pick up many books on finance and become educated Scott? You recommend only one book that was probably written by an insurance agent!
Cheers Scott!

Hey there Scott!!
I think your a little confused. Primerica is not a pyramid. They are illegal. They are a company that has won numerous awards for their professioanism. Here is a recent article "“Achieving IMSA qualification is a tangible demonstration of a company’s ongoing commitment to high standards of ethical market conduct and fair and honest service to customers,” said IMSA President & CEO Brian Atchinson. “We applaud Primerica on its dedication to exemplary business practices,” said Atchinson.
AM Best ranks Primerica A+ and recently Fitch ratings company just raised our ranking to A+.
Scott it's too bad you couldn't build a business with Primerica and that you had to stoop with working with the very companies that Kerry talks about in the blog.
Do your own research people and read many books before buying. BECOME EDUCATED!!
Oh by the way return of premium is never a good idea... you are over paying to get a partial refund back, it's built into the premiums you are paying. Imagine if Bell Canada asked you to over pay for your bills each month and later on down the road they said they would give all you money back... the only way they could do this is increase they monthly costs. Another way for the insurance industry to hike your rates and make more commissions!

The only really great advice posted was that regarding research. As a young person interested in planning for my future people are constantly trying to tell me "the best way" to save and protect my assets. The one thing I've learned from all of these people is that not everything works the same for everybody and that properly researching any item before investing in it is the best thing you can do for yourself. You wouldn't purchase a house without seeing it nor would you buy a car without driving it, so why would you pay for insurance that didn't make sense for you. Does it suck to pay for insurance, "Yes!" It truly does, but it is a necessary evil considering most of us live off credit for more than half our life time. But I also hate paying my cell phone bill, my hydro bill, and my taxes. Insurance companies have a bad reputation, but much like the rest of society, they have evolved and since I buy my shoes from a shoe store, my cars from a dealership, my TV from an electronics store etc, I figure I'll buy my insurance from an insurance company. Amazingly enough insurance companies specialize in selling insurance which means local brokers are "insurance specialists" and if i'm going to buy my shoes, my cars and my TVs from someone who specializes in those products then why wouldn't i do the same for insurance? Maybe find someone you trust in the industry and talk to them about what types work best for you, and maybe Kerry should have mentioned that in her article instead of adding more confusion to an already confusing business.

After taking much time reading postings here today Terry H. is the most un-informed so far. I know he is with Primerica, So was I at one time along with 3 others from there in my Sun Life Branch... First of all Critical Illness term to 75 Sun Life DOES GIVE YOU ALL YOUR MONEY BACK if you do not come down with an illness. Return of premium (ROP) between age 65-75 your choice. I know Primerica people are so brain washed in their multi level piramid company... just google it.. or take it from some one who was there... I have good friends still there... as I do with Amway... their choice... there are many books on the subjects posted many different views... Just make sure your advisor is a member of Advocis and gives you all your options pros and cons not just one,

PS Prime guys if you take money out of a UL policy it is NOT a loan the Funds are my money to begin with! Whole life policies would be a loan... UL is like buying term and investing the rest in the same policy, you can pick what Equities or bonds or for the faint of heart GIC's you wish to invest...

I must say sorry to banker Guy, I did go off line on the income thing... Its just if you are good at what you do... Why work for a bank?? I will say term life beats Mortgage insurance hands down... Visit CBC.ca and in the search on CBC website Type in Mortgage Insurance Not Always a sure thing... I have the DVD and carry it with me on all appointments... as far as Investments go.. invest in the banks not with the banks is the way I usually put it... I use banks to cash checks, get a mortgage and visa card, car loans etc. they serve a great purpose. But in financial planning... seek out all your options, probate bypass and creditor protected investments, named Beneficiary on NON Reg. investments, you will not find at a bank... you must see an Insurance company for these items

Ever notice that the largest buildings in major cities have insurance company logos on the side of them...

Insurance is a scam, the only time you ever see an agent is when someone new takes over your policy and they want to come over and sell you more...

You never hear from them again...

Would be nice if there was just one out there that would actually look after there clients real needs...

Oh well there just after the all mighty dollar...

Hello: I just happened upon your site because I am always conscious of the costs of life insurance. I hate to spend the money on it, but I would hate to be without it in case of a tragedy. Case in point, a friend of mine sold life insurance when my oldest son was born, so naturally, as a friend, we purchased a whole life insurance policy for him shortly after his birth. We paid for about 15 years and then the dividends and interest on the policy paid for the premiums from then on. When interest rates fell, I beleive I recall recieving a bill for approximately $70.00 on 2 different occasions to cover the balance of the premiums that the dividends did not cover. Tragically, my son was killed in a terrible car accident when he was only 22. The fact that I had purchased that life insurance all those years ago, was a godsend. It helped to pay for all the expenses that we would never have thought about, over and above the actual funeral expenses. I am grateful that my friend sold me that policy and that it was whole life. I feel that term life insurance is a waste of money. And this comes from someone who, despite what I have experienced, I still hate paying those premiums!!

Well I have to agree with the most part of this article. The terminology may be a little off (Minor thing here for sure - cash value is cash value no matter what name it may try to disguise itself as) but when it comes down to it IF a person took the time to do proper research from INDEPENDENT (AKA Not connected to the Life Insurance Industry) sources and information you will find the truth. Buy the Term Insurance to cover the "Term" (Time frame) needed and invest properly otherwise, get rid of all the interest sucking debt and imagine that in 20 years time you will have enough money saved, be debt free and no need for ANY Life insurance at all. Oh Yeah Dave Ramsey, Suzie Orman and all the rest of the Independant Advisers all say this as well.... Hmmm what could they possibly know... Oh yeah the TRUTH!!!!

Oh forgot... just google Primerica, You will get an informed view of this company that has only been around since the 80's It is a multi level financial company! piramid!!! Like the Amway of insurance and investments, where your advisor could be a pizza driver at night!! Just what you would want your Financial Advisor doing????

Dear Primerica Rep,

I too was a primerica Rep for over a year. However I have now been with a reputable company for over 5 years!! I have seen both sides of the coin, Something you have not, Only 1% of all term life polices acually pay out! Out of 35 death claims last year that I paid out, only one was a term life policy as the average term life policy is only in force for 7 years. This is where the insurance company wins big time. Term life is for a term such as debt, Children at home... I find it hard to believe that People would take advise from some one who does not have a licence to give advise like Kerry... Read the book 7 tax secrets Revenue Canada does not want you to know... It explains Universal Life in a way I'm sure most Canadians understand. (except Primerican's) Seeing they are not allowed to be members of Advocis (Professional Association for Financial Advisors).If your advisor is not a member you should seek out one who is... you would not use a Dr. who was not a member of the College of Physicians, nor would you use a Lawyer who was not a member of the Bar? or would you??

PRIMERICA!!!!!!!!!!!!!!!!!!!!!

You're all assholes. Learn how to write English.

If you ask me, ALL INSURANCE SALEPEOPLE AND COMPANIES ARE FULL OF CRAP!!! Have you ever tried to collect on a policy for ANYTHING? You are covered for everything EXCEPT what you want to collect on. They are as bad as Lawyers and Politicians.

Barb,

please read my previous posting and UL sounds good in theory but in practice it's a completely different beast.

Kerry, I would say you are not all together correct in you assesment when it comes to comparing Whole Life Insurance to Term Insurance. The reason for this is that you have not considered to other side of the coin, that is that you are only looking at one snap shoot in time at the early stage of taking out insurance. While you are right in the early stage Whole Life is generally far more expensive that Term Life, you have to weight that against the esclating cost of Term Life over time, where you will find meny carriers charging increased premium amounts every 3 to 5 years to a point where the insurance becomes almost too expensive to hold because premiums have grown to $2,000 to $3,000. per year.
I personally have just cashed in 2 Whole Life Policies as I am now retired and my pension flips to my wife when I die so why pay Insurance when My wife will be adequately provide for when I die with ongoing pension payments. The cash surrender plus dividends on the policies was a nice lump sum, (great to or almost equal to my premiums) and while some of it was taxable, the tax was easily offset by putting 1/2 the Lumpsum into spousal RSP's. I also kept the first 2 Whole life policies I purchased because it made good economic sense, you see the cash surrender values are currently growing and increasing at a greater rate than my current annual premiums. While I may not have calculated the rates of return on these policies I am currently satisfied with the growth I am seeing.

When the mortgage is HUGE; insuring it makes sense. After five or ten years, when you go to renew the mortgage, you are not obligated to renew the insurance. THEN you take the several extra dollars a month, and put it into the principal paydown.

All types of insurance has its purpose, pros and cons. Term insurance is good for young families that have very little income and alot of responsibility. Unfortunately, premiums over time (either 10 or 20 years) become too expensive to maintain and should be converted into a permanent insurance before insurability issues become a problem. Permanent insurance like whole life or universal life stay in effect for the life of the insured and can grow cash value for taxfree estate planning or even retirement. Yes Insurance is to replace income on death but it has other purposes as well. Insured investments can bypass probate going to beneficeraries within 10 days of death. This helps pay for the funeral while probate can tie up an estate for years. It can help transfer wealth inter-generationally without excess taxes. They are usually creditor protected where as other investments can be wiped out by bankruptcy and taxes as well as inflation. A universal life policy can be set up to provide flexible guarenteed insurability options for increased insurance thoughout a child's life so that experimental use of drugs in teen years or medical difficulties later in life doesn't make it impossible for the child in adulthood to provide for their future family. To find out what is best in any particular situation, one needs to sit down with a licensed individual and go through a needs annalysis. They also need to review their insurance needs at least yearly. No one should be allowed to publish opinions as truth. Articles such as these result in families not being protected in future years. Only a very small percent of term policies payout because they become too expensive to maintain and lapse. I've come across many seniors that are left with no insurance in later years when they are no longer insurable and will be leaving their families with nothing but debt. Term policies expire, Permanent policies don't. Anyone can write a book. Even fiction gets published. I truly wish those unqualified to speak on a subject would get off the net and let people get more truthful information.

As a licensed Primerica rep for 6 years now, I can honestly say that this article is fairly accurate. I agree with the first two points, the third point is really debatable. There are situations where the parents may not have the $10,000 available to bury their kids and buying it for them with an option to convert it to their (the kid's) own policy for a few bucks a month.

Some of you "financial advisors" that really believe all these titles at the end of your names really mean a lot should really take a look at what the ACTUAL numbers are. Every single Whole Life and UL policy that I've ever come across all work the same: Many years of zeros, which in turn means a poor rate of return, insurance company decides what the rate for you to borrow your own money is (If you gave me $100 today and asked for it back tomorrow...and I said I would give it back to you but it would be in the form of a loan and you'd have to pay 6-15% to have it....how is that even logical???) and of course they keep the cash if you die. By the way, DIVIDENDS in insurance contracts DO NOT work the same way as they do outside of insurance.

UL works a little differently but we won't discuss it's self-imploding abilities.

While it is true that when you go to renew your insurance when your term is up the price may be higher, Primerica's prices have actually come down while the industry's have gone up...HOWEVER, you're "assumption" is that the clients needs will be EXACTLY the same in 10-20-30 years, when in fact aren't all of you "advisors" saying that each client's situation is different??? Well, if that's the case then in 20-30 years will your clients still need that much coverage??? Most likely not. Therefore, when you life insurance agents that like to sell the permanent products assume that that's the case, you are really failing to look at the big picture (the clients "new" needs). Primerica's term policy's are guaranteed to age 95 while most are to age 70 or 75. We have clients that are paying less today for their insurance than they were 20 years ago when they got their policies!!

And YES our term is NOT the cheapest, but it's the best bang for the buck because we don't screw clients with permanent insurance and make massive profits to then offer an inferior term product. Dollar for dollar our term is not the cheapest but it is the best!

If you want some third party expert advice then read Personal Finance for Canadians for Dummies, How your life insurance policies rob you, The Canadian Buyer's Guide to Life Insurance, and Consumer Reports.

The truth is in the ACTUAL numbers and not the ILLUSTRATIONS which are really ILLUSION sheets. Sell a policy and look at it in 10-30 years.

D

You know what...I think Kerry get's to keep her job by the number of people who reply to articles....the more incorrect she is on her articles,the higher number of people reply to tell her so...Kerry you have no education what so ever to be commenting on Insurance, just another mis-informed so called expert who proves your really nothing more than a expert on nothing---quit inflicting harm on people that might not have the education to understand---you should be ashamed

1 & 3 = Pile of sh*t.

Mortgage insurance has many flaws, agreed.

First do your research THOROUGHLY then pass advice. OR get your LLQP!

Permanent Policy is always better than Term, all depends on the family's or individuals' circumstances.

As a person who has worked in the financial services industry for over 25 years I take issue with the wholesale condemnation of Mortgage Life Insurance. I have seen it assist families on numerous occasions and we are the ones who get blasted if there was no insurance taken out. It is the most difficult conversation at the most difficult time when someone realizes there was no insurance. Term insurance is just that ..."term" - heaven help you if your health changes between terms. With mortgage insurance you can have a change in health, but keep your coverage even if you move or refinance (you just can't add to that coverage if declined). Mortgage Life insurance is portable from house to house, mortgage to mortgage.. and being nearly 50 I enjoy the premiums for my new mortgage being calculated at the rate for my age when I orignally applied for my mortgage 25 years ago even though the new balance on my third home is substantially higher... It's not perfect.. But it's pretty darned good insurance and shouldn't be swept under the carpet carte blanche.. like so many here have said.. it is one of many options to be considered.

It's interesting Scott only equates one's value with monitary things & income... I have had a hugely rewarding career with many personal achievements, many in the community and with my family.. funny if Scott's making more dough.. where is it coming from?...Sounds like Banks are indeed looking out for banks (It is why they are in business).. and Scott's taken a page from their playbook looking after.. um.. Scott !... And I wonder when Scott writes a cheque from all his well deserved wealth... um... who processes it....(a bank) He'd be lost without us. Oh & we've been around more than 175 years... and are probably a recommended buy from Scott to his clients...:)

To be honest I agree with much of what Scott said.. but the whole income equating to a person's value ticked me off. I do wish that banks were allowed to assist clients in house with some of the strategies he mentioned.. but alas that piller is being lobbied on aggressively by insurance companies to keep us out.. Insurance Companies can do mortgages and investments heck even have virtual bank accounts.. but banks are being shut out in this critical planning area of insurance strategy. That at the end of the day may be the root to some of the discourse.

Referring to anything other than term insurance as whole life proved you had no clue on the subject.
When a person asseses their needs and find that they will need insurance for the long haul, term insurance is the worst possible choice. As with most purchases of any kind buying the cheapest is rarely the best.
Perhaps you should stick with running...

A very flawed article but I do not have time to talk about it. It's just another case of a misinformed 'expert' citing opinion as fact.

after reading the above recommendations I understand why one should have an insurance license
Hey Kerry...no LLQP
NO OPINION

Put your money in a hi interest savings insurance is a rip off

I think you forgot to mention Universal Life Insurance. Having life insurance for your child is a good thing and isn't costly at all for just 10000 to pay to bury your child. Plus, you're not putting alot on your child cause you are not dependent on their imcome for support like you would be from your other half.

Number 3 is not entirely correct. Child should be covered for the amount is takes to bury them, god forbid anything will ever happen. It makes a child passing away more difficult to grieve for parents paying off a loan to bury your child every month for 10 years. It is not the way to keep their memory alive.

Utter nonsense.

Whole life has it's place just as term has it's place. For most people, a combination of both is acceptable.

I would like to know what qualifications Kerry has to post sold a bold, and idiotic post.

My 'investments' in a quite simple Canadian equity fund, declined by 40% in 2008 (I understand its a paper loss as I'm investing for the long term 30+ years) My Whole Life (Insured deposit investment policy) is what it should be called, paid a dividend in the neibourhood of 6%.. Look up the history of the 'dividend scale' with WL contacts, they are rock solid over 100 years of dividends paid to policy holders.. Term has a place, U.L has a place.. Brutal to post an artice like this that is very misleading.. Understand what you are purchasing, and for what perpose (Income replacement-Estate Planning-Insured Asset Transfer etc...)

The sad truth is although Kerry's advice is pretty much accurate,most insurance is only good if one never uses it.Case in point;CBC's marketplace has exposed mortgage insurance as basically a fraud,qualifying people very easily only to underwrite and investigate after the policy holder dies.I could state other real life examples of insurance ripoffs ,primarally by insurance companys.Take notice of where the critisisim of Kerry's advice is coming from,those with a vested intrest in the sale of these products or shareholders in insurance companies.

Paul,
You said,"If people wish to understand insurance - GO TO A QUALIFIED FINANCIAL ADVISOR! This one-size-fits-all article does not help to clarify the issue of insurance, just confuse it. Stop giving advice on issues that are out of your area of expertise"
Paul who do you think sells the expensive Whole Life and Universal Life policies?? Give you a little hint... Qualified Financial Advisors!
Having a licence doesn't mean they are ethical!
Read the books i have listed paul and become more aware yourself before posting... I am licenced in the industry for over 13 years. Can't fool an expert Paul!
Oh by the way there are many tax advantage portfolios that give better return with out all the fees of Life Insurance.

I personally don't agree with the comments about the chilren's life insurance or the whole life insurance.

It may be more expensive in some cases but if you are one of the unfortunate people like me who become uninsurable at an early age then it is the only way to go. In my case my parents had bought a children's policy and gave it to me when I was an adult. At 21 I was diagnosed with a medical condition that made me basically uninsurable and had I not had that policy then I would not have life insurance. As a now single mom it is very important to me to know that my kids are protected financially even if I was to die.

If people are fortunate enough to become selfinsured as they get older than that is great but sometimes life doesn't always work out that way and having a whole life policy to cover a funeral and and some debts is not a bad thing to leave your family with so atleast they will be able to grieve without having to worry about too many creitors banging down their doors.

Here are some postings you should all check out!!
Done by financial experts who don't make money on what they recommend!

http://www.oprah.com/omagazine/Suze-Ormans-Twelve-Steps-to-Wealth-Step-8
http://www.youtube.com/watch?v=J99gYzTjJNo
http://www.youtube.com/watch?v=gvjir8yxPUI&feature=related
http://www.youtube.com/watch?v=6vnN9liFWaE&feature=related

Excuse me?! Are you a financial advisor? Are you qualified to be making generalized comments about insurance and as to whether or not whole life policies are good or bad? The last time I spoke to a financial advisor, they qualified the fact that each person has different needs based on their own personal goals. If I am using insurance for advanced tax planning, is term life insurance going to help me? No! If I have a lot of disposable income and wish to build wealth in a tax efficient manner and I've maxxed out my RRSPs and TFSAs, where else can I shelter my money? Not in term insurance! Stop trying to make insurance "sexy"! It's not supposed to be sexy! It's supposed to be boring! If people wish to understand insurance - GO TO A QUALIFIED FINANCIAL ADVISOR! This one-size-fits-all article does not help to clarify the issue of insurance, just confuse it. Stop giving advice on issues that are out of your area of expertise.

I apologize if my comments have already been voiced by someone else as I didn't read through all the posted comments. I agree with points 1 & 2 but disagree with point 3 regarding life ins for a child. RESP is a great vehicle to set aside for a child's education - but that's it - strictly education - not very flexible. What if that child develops an illness or disability that would prevent him/her to obtain the proper insurance in adulthood. Starting them on a life insurance policy young has a number of benefits: low cost of insurance, guaranteed insurability in future, and a potential savings vehicle (if it's a UL) that a parent can pass on to the child as a gift when he/she is responsible enough.

Kerry: please do more homework before misguiding your audience, especially in an area that has long-term implications.

I'm a financial educator, licensed insurance rep and licensed mutual funds rep. Located in Vancouver. a_kuei@hotmail.com

What Kerry is saying is 100% correct. Go out and pick up any book from the library on Finance and they all say the same thing. Buy Term Insurance and Invest the difference outside your insurance policy. (The Wealthy Barber, Canadian Best Seller,) Financial Freedom Without Sacrifice, The Idiot's Guide to Finance, Wealth Without Risk, also Consumer Reports Canada has done numerous articles on Life Insurance and they have always been pro Term Life and against expensive/poor value Whole Life and Universal Life.
Do your own research before buying like I did. Don't trust any firm, doesn't matter how long they've been around. Kerry hits it on the head when she says the agents make crazy commissions selling expensive Whole Life and Universal Life Insurance.
Ask your agent what happens to the Cash Value on death of a whole life policy. If they are honest with you they will tell you the company pays the face amount but keeps the cash value. if you take all the cash value out later to retire on, it cancels your insurance...yikes! Then they tell you it's a benefit to be able to borrow your own money! What would you tell the bank if they said you had to borrow your own savings if you wanted access to it??

I got screwed by Manulife on my 1st to die insurance taken out 10 years ago, doubled in premium in year 10. Could not afford a double hit so had to cancel it. Wasted a lot of money over 10 years for nothing. No one said it would double in premium ever.

what your NOT saying is......TERM LIFE can carry a huge surprise .....in premium increases when renewal time comes at the end of the term

Can someone recommend a better source of information (book etc.) that provides a simple decision making criteria / tool for choosing the right type of life insurance?

It amuses me to read comments by "licensed professionals" who cannot even write a sentence without a grammar mistake. Professional?

Kerry's article is right on: if you calculate the Net Present Value of the premiums charged on a Universal Life policy, you will quickly realize that, had you taken those premiums and invested them yourself, even in a GIC, you would have tens of thousands of dollars more than the cash value in your policy! And that, dear readers, is how the insurance industry makes their lucrative profits!

Funny how none of you are mentioning the "Vanishing Premium" debacle of the 80s. There was a class action suit against life insurance companies who deliberately mislead their customers regarding the "huge" (not) cash values that you can build up in a Universal Life Policy.

Clearly, the so-called "financial advisors" (don't make me laugh) and life insurance "professionals" (I use that word loosely) do not want their fuzzy mathematics and questionable sales tactics exposed for all to see. So much easier to insult the writer of the post, isn't it?
This is an excellent article and, having been ripped off by a Universal Life policy myself, I can only second Kerry's advice, which by the way is echoed in David Chilton's most excellent book "The Wealthy Barber."
Do your research, and the math, before you buy Life Insurance!

Hi I think that everyones situation is different. That is why there are so many options out there. Speak to someone knowledgable about it, do not buy into internet articles that are written by people who do not have the proper education and references to back up what they are saying. If you would like to know more about what would work best for you and your family please contact me at branch.destiny@gmail.com. It can be very overwhelming trying to figure it out on your own, as we are all trying to do the best for our families to make sure they are as protected as possible.

Kerry, should not be able to utter such nonsense. people are confussed enough when it comes to Insurance. Each situation is different. You can not just paint everyone with the same brush. Individuals should sit down with their Financial Advisor(who has an Insurance licence) and go over what is need for their situation. Chils riders are very inexpensive and ensures your child has insurance when they are older, should they run into health problems and may not qualify. Perhaps you are not a saver and you have non one to get advice from, whole life may be the answer for you. Term insurance also has it's place, you can get term 100 that does not have a savings component, but it does allow you to lock in your premium for life. There is so many reasons to not listen to what Kerry has said. She is very missinformed. Shame on her for passing on such poor advice!

Heather you are correct. Term life is only in force for the term and once expired you are no longer insured.

I agree that mortgage insurance is overpriced, but this article is not well thought out and whole life and insurance for your kids has it's place. Using fees as a rationale for ditching important and valuable insurance products is a sure sign of ignorance. Don't take advice from this column, but find a knowledgeable insurance broker (brokers don't work exclusively for one company, so you are sure to have more balanced options) you trust to get the right insurance. Yes, insurance sales people have a conflict of interest, but they are also ethically bound to put your interests ahead of their own. It's not as hard as you think to find one who will do so.

There seems to be a lot of confussion here... As a licenced Advisor in both insurance and investments... I will lay this out the best I can... Term life goes up in price at every renewal eg. 5 year term every 5 years 20 year term every 20 years, and it has an expiry date as well. For example my Primerica life policy would cost me over $8000.00 per month after age 85!! only $128.00 per month for the first 15 years, then it increases every 5 years after that! Whole life policies.. price is locked in for life and usually has a Cash Value and or dividends... I have some clients with a policy costing $200.00 per year and the dividends are over $600.00 per year. Not a bad deal. The best Universal Life policy has a death benifit PLUS the investment side account... eg. death benifit 200,000 and lets say I die at age 65 and the investment side account is $800,000, total death benifit would be $1,000,000 TAX FREE to my wife.

In the last down turn in the market where people lost thier jobs, and could not pay the premiums on thier term life polices, they had to let the policies go, and in some cases the clients were now uninsurable, meaning they can't get coverage even when they return to work! If they had a UL or whole life policy the permiums could have been paid out of the investment side account or a policy loan on whole life, and the clients would still have the coverage till they found new work! Make sence?? Does to me!

As far as the bankers comments to this... if you were any good at giving Financial advise they would not be working at the bank for $65,000 - $85,000 a year! Lets get something straight... The banks are only interested in the Bank!! Not you as a client! If your investment account goes down at the bank...Banker still gets his pay Check the same as last month... If my clients lose money so do I in my trails... So I have a vested interest in my clients!

All I can really say is seek out good advise from a full time Licenced Advisor, and do your business with a Strong Company within Canada, that has been in business for over 100 years! Canada has the best Financial Companies in the world!!

First of all, trust the comments from Brian, CFP - not only is he correct, but he has the education and designation to back his comments. As for Kerry - read the brief bio about her. Obviously she is looking for sponsorship for her triatholon, or a backer for her next book to be pulished.
Ms. Squwakfox should be like a bird and squwack off!!

I see Primerica Lifers are loving this, as they only sell Term Life! Like I said I worked with them for a year before moving over to Sun Life for the past 5 years! There are many cases where term life fits the bill, BUT NOT ALWAYS!! I have yet to find a Primerica Life policy that I can not replace for a lot less money than Primerica!!! I have replaced many of them! Even 4-5 years after they were written for less money per month!! The big kicker with Primerica life is...it can't be converted to permanent insurace NO HEALTH QUESTIONS ASKED!! Like all the other term policies sold, Why in earth would anyone buy Primerica Term for more $$$$ and it can't be converted if need be????

My understanding is that term policies are just that, they expire after the "term" is up and quite often to renew at an older age the premiums tend to jump considerably. My understanding on a whole life policy, is just that, it does not expire but is effect for the "whole life" until the person passes away. Am I correct on this or mistaken?

we bought both universal life and term the universal covers all our exisiting debt and the term is for 3ys expenses. at 55 the term runs out and we will not renew it we are hoping by then to be debt free and then the universal will cover expenses. there is no right answer when in comes to insurance just make sure you have enough to cover what you need.

I feel sorry for anyone who takes her advice and ends up underinsured, or not insured at all. Kerry clearly has no idea what she is talking about, and how she is able to post such misinformation is as confusing and inappropriate as her comments. She should not be allowed to post again, and I refuse to support a site that supports her.

There seem to many commenting with no real understanding of insurance theory and actuarial mathemetics.

For most parents, decreasing term is THE BEST BUY!

My father was a Confederation Life agent for many years. At eighty, he finally cashed in his whole life policies. I cashed in the whole life policy on my life immediately after his death.

What happened to Confederation Life? It invested heavily in real estate. Ted bought the corporate headquarters at Bloor & Jarvis after the company went down the drain.

Terry should be fired

Hello all,

As a Financial advisor, I would like to tell those who read this artical to be aware... I started with Primerica Life, "the Buy term invest the rest" company... I does not work in most cases, the reason I left them to become and advisor with Sun Life. There are needs for both term and Whole life as well as Universal Life! each person is in a different stage of life and financial stage in life! Talk to your LICENCED ADVISOR!!!

This post is way wrong on most accounts but the Bank Mortgage Insurance. I have insurance on all my children with the option to buy more no questions asked!! This is to protect thier future more than anything!! Please be informed!!

It seems rather short sighted to not look at all your options. Term has its place as well as whole and universal life. Each situation is different and requires different things to choose from. Having life insurance on children to build cash value is not appropriate in most cases but the idea of locking in a low rate due to their age is not something to shy away from. Death is the one thing we can't escape. Even children die and who do you want to be in control of the finances for the funeral etc, you or some charity agency?

people have too much time on their hands to be making so many comments - figure out what works for you - when has the internet ever been the best source for info - it's easy for anyone to put some letters after their name and spew their "advice"

Sounds like short-term young people thinking to me.

I agree with some of the information, but there are some pretty important points missed.

The big downfall with mortgage insurance is that it is underwritten after death not prior to death - personal insurance policies are underwritten prior to death. This can and does give the underwriter of mortgage insurance lots of room to deny a claim.

I agree that kids don't provide an income to the family but what would you do if your child died? I know that I would need some time to straighten out my head if (god forbid) something happened to my kids. One years worth of household expenses and funeral costs seem pretty reasonable to me.

This article was obviously written by an ignorant monkey, on what planet do you live on? You're recommending term life insurance over whole life but what happens at the end of the term???? premiums and jump 10X!!! so unless youre sure of your death taking place within the next ten years (or will not require it after ten years) term life insurance will royaly screw you!

Congratulations on helping people to totally screw themselves over, I wish I could meet the ignorant dummy that wrote this so I could punch them in the crotch

Thanks Mark,
I think that it makes much more sense for everyone to look at THEIR individual situations before deciding what's right. Insurance is in place to cover the liklihood of something happening. If it doesn't happen GREAT!!! You're alive and healthy, who cares if you get premiums back?!?

I am having a large degree of dificulty understanding how that whole article can be printed for the masses to see. The incorrectness and oft seen misconceptions used in it are beyond anything I have ever read in a published article.
I am a Financial Planner with one of the largest and most respected institutions in Canada, and Insurance plays a LARGE part of many of my clients' plans. Not because I get paid to do it, but because it is needed in most cases, and in others it simply makes sense. Term insurance gets more expensive every time the term renews; it doesn't stay a constant premium until one turns 80. A Universal Life policy can be completely paid in 20 years, and ammasses a cash value after that point, in many cases with a guaranteed rate of return far above what you would see in a GIC today, as well as market return options. No, it's not for EVERYONE, but you can't say they should be avoided. You haven't even discussed the TAXATION merrits of the growing cash value of a Universal Life. In most cases this is tax free growth! The non registered savings piece you speak of would be completely open to taxation (unless using a TFSA for a portion). Used WITH a term life that is in place to cover a stated need for a stated time is usualy what fits best into a full financial plan's risk management section.
For the compounding of $150 a month until your 80 INSTEAD of insurance: That's great if you die at 80. The idea of insurance is to protect against the worst. What if you die in two years and have amassed a savings of $4,000?? What will that do for your family?
There isn't enough space here for me to run examples of every scenario, but please, if you want to know how different types of life insurance MAY or MAY NOT work in your situation, please drop me a line at mark.moloney@sympatico.ca, I will be more than happy to answer any questions that are pertinant to your situation.

In regards to having money to bury your child, in the event they pass away, many people are not aware that many pre-need arrangement companies will cover the cost of a buriel plot and sometimes other, at no additional cost, if you purchase your own. I bought my own before I had a child and in later years, when I paid it off and had a review, it was mentioned to me that if my child died before I did, that they would automatically be covered since it is a benefit included in the purchase price.

Since most families have a limited amount of money to work with in their budget, they do have to choose, so I chose to buy a Group RESP for my daughter, through one of the not for profit Foundations. I am hoping that when she gets a good education, even if she is diagnosed with something that would cause her to pay higher premiums for life insurance, that she will have a good job and be able to afford it.

Ed, when you dou your calculation are you tking into consideration on the increasing cost of term insurance over the life time of the policy?

Wow Terry, you really are a boob. I only hope you never have to know the pain and fear of watching a loved one go through chemo. I suggest you call an agent of your choice and get a policy

Hi Folks,

Please take a minute to find one of the thousands of online compound interest calculators and see why whole life insurance is a complete waste of money, unless you are retired, and have yet to save a penny (sorry, if that is you). Term life insurance, and a savings account are all you need. Here's the math (yes, I know, math is annoying, but it does not lie). BTW - term life insurance now goes to age 80. If your company doesn't offer that - CHANGE policies. You can get term, even with previous illness...whole policies, and disability policies are expensive - but you DON'T need them. Oh yes, the math. Take a 30 yr. old individual (your savings account won't care about what sex you are...you could even have both), with a term policy that expires at 80. At 81, it will expire. If you live to 81, that gives you 51 of savings - or 51 years to give your money to some insurance company with a whole life plan who WILL take admin, management, etc... fees and give you a VERY small return on investment if you start taking it out. The math (of yes, the math again).

51 years, X 150 a month, at 8% (which is far lower than the average compounded annual return since TSX inception) = 1 MILLION, 208 THOUSAND, 385 DOLLARS, and 92 cents!!!!!!!!!! AND - you don't have to wait several months to get it, go through countless insurance interviews and phone calls, consult tax accountants or lawyers. Your family is WELL covered!

I know - you're probably all thinking - well the economy sucks! For an investor - that's the BEST time to keep investing! Buy LOW, sell HIGH! If you keep buying your investments...funds, bonds, bills, etc... every month - you get the lowest cost average. Whole life is only for those who have unfortunately not saved until it's too late, or for those who are poor at arithmetic. SAVE MONEY MONTHLY, don't give it to companies that make NET PROFITS in the BILLIONS on your silly whole life policies. Get a compound interest calculator, do the math, plan accordingly, take care of your family, and only spend the lowest possible amount on an inexpensive TERM policy in case of an unfortunate accident or early/pre-mature terminal illness. I am a financial analyst for a major CDN bank who knows where your money is going, and who knows how much the public is fleeced each day by these companies...I struggle with it, honestly. Our NET income for Q1, was $988 million. Who do you think is getting the "good" end of the bargain? Please, please, please, 1) Do the math 2) save and spend responsibly 3) only buy term and 4) that will take care of your family!

Sincerely.

I wish someone would have told me about RESP's when my kids were young...I am ashamed to say that I bought into the whole life insurance thing for them...the only saving grace is when they are old enough, they can take over the policy...

I think you need to be educated about life insurance policies before commenting on them. Permanent insurance policies serve many purposes which short term insurance policies can not. Permanent policies can be effectively used for estate planning and chartable gifting to reduce taxes. They can also be used for estate creation. Every policy in the market has its purpose and understanding them is the key. So saying outright that term is better then whole life is not right.

Zahid Syed

TERM baby, it is 100% right for families 100% of the time, with investing the difference....that is called financial planning. Not just selling a product. Remember guys there is a difference between an insurance sales person and a financial planner, coach etc.

When my son was born, my ex-husband & I took out a small policy for him. Six months after he was born, he was diagnosed with a brain deformity and other medical problems that took him from us a month before his 12th birthday. This was ten years ago and without that small policy, we’d have been in debt till now trying to pay off his funeral costs. You never know what curve ball life is going to throw at you.

Terry, can you confirm what types of insurance policy's Primerica is licensed to sell in Canada?

Kerry is obviously not very well informed on the subject of life insurance!!.

life insurance is a most definite need for children , besides the chance to buy insurance before illness is discovered as formentioned in some others comments , and i am glad they lived long enough to know the hassels of getting insurance when ill , but what if they did not survive cancer or an accident ? Could the parents afford the $ 10,000 ( or more ... ) funeral bill ? the most important thing is to just insure them for a low amount , just enough to cover funeral expenses , to give an idea of the price of such a policy , i still have the policy at the same rate 40 years later at $ 19 a YEAR !!

As per policies for children i say they are a must, as my parent did not have any on me at 18 i got kidney failure and no one wanted to touch me unless i pay a huge premium.. so it is a good idea to get your child insurance just in case the do get sick

It should be mentioned that only 1 percent of all TERM INSURANCE POLICIES is ever paid out. After age 71, your term insuranc ends. After age 71 is becomes difficult to buy insurance, bec ause of sickness, etc.
Your whole life policy stays with you, so long you live. And pays dividends as well as interest on all your dividends.A term rider with your whole life policy seems to be your best bet, in the long run.

RE Life Insurance for kids, you said "But this is one cost you don't need to incur."

I was born in Nov of 1965 and my parents took out a life insurance policy on me as an infant. In April of 1964 I was diagnosed with cancer. I received 2 surgeries, 28 radiation treatments, and a prognosis of 3 more months to live.

Fast forward to 2010 and by the grace of God I am 44. Twice in my life I have increased my life insurance based upon the terms of that policy. You see, it had the option to increase *without* a medical exam. We looked at getting a different insurance product once and the company would not touch me.

My story is not a reason for everyone to get life insurance for their children, but it is an argument against life insurance for children being not necessary.

I still pay the monthly premiums on that original "baby" policy an its yearly dividends which are not set to be re-invested (yeah, I know) now are about the same amount as the yearly costs. It's value has kept pace with the cost of burying me whenever, and the other policies are there for my retirement (yes it's whole life).

On paper my insurance situation looks unorthodox according to today's practices, but in my case it's better than anything I could hope fornow.

Brian check this out... http://www.marketwatch.com/story/primerica-inc-celebrates-ipo-first-day-of-trading-on-nyse-2010-04-01?reflink=MW_news_stmp

Cheers Terry H

Brian,
Check this out... http://www.tradingmarkets.com/news/stock-alert/c_primerica-expects-ipo-to-raise-nearly-290-million-865804.html

Brian, You are very fixated on Primerica. They must be replacing a lot of your whole life and universal life insurance. The readers of this blog are probably smart enough to realize that you never quote men's rates, Primerica is focused on families, not just women. Our rates per policy sold in the industry are on average roughly 1/3 the cost per thousand of our competitors... guys like you.
We'll keep focused on branch development serving the middle income market and helping people in all areas of finance, you keep selling insurance.
Cheers!

Terry,

Charging females higher rates than almost any insurance company in Canada and the lack of choice for consumers, is a poor way of doing business.

Then telling them to buy term (at high rates) and invest the difference in some mutual funds you sell.

Here is an other example for you:

Female (born may 15 1965) 45 year old (regular health)

term 20 $500,000 coverage

Canada Life 64.35/month
RBC Life 64.35/month
Equitable 66.15/month
Transamerica 68.85/month

way down the list

Primerica $118.75/month

Using your words:

"Insurance Agents to set higher premuims and much higher commissions. This is appalling!!"

Brian,
Thanks for changing your posting and now being up front and honest about the "custom financial plan" You were miss leading before stating it was free.
Also telling people they get their money back on your their Critical Illness insurance if they don't use it... Brian do you actually think people are that out to lunch... nothing is free Brian... those companies set higher rates to build in those costs, in turn those companies invest the overcharged premiums, and at the end give the original principle back to the unknowing clients.

Just another way for the Insurance Agents to set higher premuims and much higher commissions. This is appalling!!

If you want Critical Illness insurance, purchase it with no refund at the end that way you pay a lower fee and save the money yourself!
Only makes sense... common sense!

Terry,

The offer is custom financial plan. Thanks for spending time on my website. www.rightinsurance.ca

My new calculator person A vs. B (with permanent life insurance) pays less tax and gets to spend more money than person A (who has no insurance but more money).

Since it is tax time again, paying less taxes is very important in retirement.

Brian Poncelet,
i noticed that you say you offer a Free Financial Plan... WOW!! Here is what I copied off YOUR SITE... FREE FINANCIAL PLAN!
When you buy Critical Illness coverage, I'll give you a custom financial plan tailored to your needs for only $99 - a value of $549! Call now to take advantage of this offer, good until January 1st, 2011!

Is this legal??? What is free about having to buy a policy from you and then charging a fee????
If people can't trust your words on your site then how are they to trust you with anything else??? Typical use of false language... typicial whole life insurance agent... why would we think you would be any different Brian???

This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.
Ju8lia
**********

Gianni C,
Great posting!! Your cousin, JORGE VICENTE of FREEDOM 55 FINANCIAL, wants to thank you personally for the plug!! How low will these guys stoop??

Dave,

Let me help with a few ideas. The TFSA grows tax free and tax sheltered when you pull money out you earn what ever is left in the account.

The cash value in a whole life policy grows tax free and tax sheltered. If you take a loan out you still get dividends as if you never took the money out. Banks like the TD will loan the money out up to 90% of the cash value and the insurance is the collateral. When the loan is paid more cash value is available. The policy's cash value is actually allowing the insurance company to hold your cash value as collateral.

Term is insurance is great for short term coverage, is affordable at younger ages and people with limited cash flow, but only 1% is ever paid on term policies. The best return on term insurance is pay the first month's premium and die! Since most people live longer than their term policies the insurance company is off the risk and the opportunity cost continues.

Corporations eligible for the small business deduction enjoy taxes that are significantly below the top individual rates to which their share holders are subject to. Corporate owned life insurance cost much less, in some cases 30% less.

Many people are becoming incorporated, saving taxes, insurance with cash value helps even more.

As a consumer and not a seller of insurance/RRSP's/RESP's etc. I am wondering why when I purchase whole life insurance, I pay for a death, cash savings, and dividends benefit. However when I die my estate only receives the death benefit. What happens to the savings portion and the dividends?? If I borrow money from the policy and then die my beneficiary receives the death benefit less the amount borrowed. If the cash values and dividends are mine why do I have to borrow them and pay interest on my own money?? That does not make any sense to me. As for buying insurance to protect my investments from Government taxes, I look at it this way. If I do not have insurance the Government takes its share via taxes. If I buy insurance the insurance company gets the money. My question to myself is this, who do I want to get my money - the insurance company or the Government? The other way I see this is I am paying for the insurance while alive and thus adding more payout from my income. When the Government takes the money it is after I am gone and no longer need it. The argument that you are leaving an estate to your children is in my mind a weak one. I had to earn the money to invest it in the first place so I shall pass on my "wisdom" to my children and they can do their own investing. If there should be money left in my estate after funeral expenses, probate costs, and taxes then by all means I want that money to go to my children. I went with term insurance when the kids were young and invested monies in RRSP's, cash accounts, and now TFSA's. My children have left the nest, my mortgage is paid, and I have money set aside for retirement. I have never had any insurance on my children or my wife. Thinking back on it now I perhaps should have had insurance on my wife. Luckily I got away with that one. As I see it Life Insurance is inappropriately named. It should be called Death Insurance as you have to die in order to collect anything. In conclusion I would say that what I have done worked for me. I would advise anyone to check out different companies, and agents. Make sure you completely and fully understand what it is they are selling and what the benefits really are. Agents talk a good talk but they try to sell you the highest priced product they have. After all they have families to provide for and need a good income. Knowledge is power. No one gives you something for nothing. Agents have to eat, companies have to satisfy their board of directors and the board of directors have to satisfy the stockholders.

First of all Kerry should do her homework. Whole life and Universal life are not the same. They are both PERMANENT insurance, but that's the only similarity. Secondly, to suggest that all permanent insurance is a waste of money is irresponsible. It is an absolutely effective tool of any good estate plan. People seem to feel that they buy insurance for themselves. That's only true for car insurance and house insurance, disability and crtitical illness. LIFE insurance has nothing to do with you... it's to protect your family. I certainly agree that term insurance is the most important thing you can buy when you have a growing family, mortgage, education costs, etc. But term insurance means exactly what the name implies. It is for a specific term... 10 years or 20 years. When that term ends, people generally have their mortgages paid off, the kids are done school, and have moved out on their own, so the need for that much coverage no longer exists. That's when estate planning needs come into effect and where permanent insurance is useful. Mortgage insurance is a TOTAL rip-off and I am surprised it is even allowed anymore. Along with the things you mentioned, it is also underwritten after death. So they can go back through your medical history and find out that, at the age of 3, you were diagnosed with a heart murmur, and then disallow the claim since it was a pre-existing condition. Do yourself a favour and buy term insurance to cover your mortgage, its cheaper, lasts for 20 years, and, if you die, your beneficiary has the option to pay off the house, or invest the entire amount and withdraw the amount of the mortgage payments out each month. Most people think they HAVE to have mortgage insurance. You don't. The Banks love this though as it is an extra paycheque for them every month.