FAQ (FREQUENTLY ASKED QUESTIONS)
Many people are confused by Life Insurance. We get so many good questions! Here are answers to some of the best questions.
Do I need Life Insurance?
This should be the first question you ask. Life insurance is used to protect you or your family from a financial loss in the event that you die unexpectedly. There can be many types of financial needs at death, including:
- Final expenses, like funeral or cremation costs, lawyer’s fees and taxes
- Paying off any outstanding loans
- An emergency fund to tide your family over through a difficult time
- A fund to cover your children’s education
- A fund to replace your lost income
If your family has any of these financial needs when you die, then life insurance can help.
How much life insurance should I buy?
You should buy enough life insurance to cover all of the needs you have identified. Figuring out what your life is worth – or what kind and how much insurance you need – can be challenging. If you are unsure how much you need, you can call one of our Licensed Insurance Advisors and they will be happy to help you through the process.
What kind of life insurance is right for me – Permanent Insurance or Term Insurance?
There are only two basic types of policies: Permanent Life Insurance and Term Life Insurance.
Permanent Life Insurance provides permanent protection – coverage as long as you need it, which means coverage until you die (providing premiums are paid). This type of insurance:
- Generally provides a fixed amount of insurance, at a fixed premium, for the duration of the coverage.
- Usually offers a partial refund of premiums if, for some reason, you decide to cancel your policy before you die. This refund is called a “cash value”.
- Often offers a variety of premium payment options. Some permanent insurance plans are payable for as long as they are in force (sometimes called Whole Life insurance), while other plans allow you to pay a larger premium for a shorter period of time, such as 20 years and then no further premiums are required even though the coverage continues.
- May offer a variety of additional benefits, either at no cost, such as a Terminal Illness Benefit, or for an additional premium, such as an Accidental Death Benefit.
Term Life Insurance, sometimes referred to as temporary insurance, can last for 5, 10, 20 years, or for any other period that is defined in the policy. At the end of the term period, the insurance may end, or you may be able to extend it for another term. You may also be able to convert your Term Insurance policy into a Permanent Insurance policy. This type of insurance:
- Costs less than permanent insurance. Usually, the shorter the term period, the lower the premium.
- Generally is used for the purposes of covering a short term need like loans, mortgages or until the person can afford to purchase additional permanent insurance.
- Like Permanent Insurance, may offer a variety of additional benefits, either at no cost, or for an additional premium.
What is No Medical & Simplified Issue insurance, and what is the alternative?
Insurance companies have different ways of assessing risk, or deciding what policy you qualify for. The two broad approaches are referred to as “traditional insurance” and “No Medical or Simplified Issue Insurance” :
- Traditional insurance is underwritten, or assessed by an insurance company using an application that may be 20 to 40 pages long, with medical tests and doctors reports. It typically takes 4 to 6 weeks, or longer, to be issued. This type of insurance tends to be less expensive for healthier applicants who want larger amounts of insurance.
- No Medical & Simplified Issue insurance is typically underwritten with just a few medical questions, no doctors reports and no tests. It typically takes just a few days to be issued. This type of insurance tends to be for smaller amounts of insurance, tends to be for applicants who have more health issues, have been declined by a life insurance company in the past or who do not want to have the hassle of medical tests.
Assurance vie Michel Levesque Life Insurance specializes in No Medical & Simplified Issue life insurance. We offer several options with regard to the amount and the type of life insurance available. We also offer a wide variety of simplified underwriting options, from a very few simple questions (for an applicant with very serious health issues) all the way to what we consider to be the simplest form of traditional underwriting for a healthy applicant. Because we offer so many choices, we know we can find the best value policy available in the Canadian marketplace.
Assurance vie Michel Levesque Life Insurance believes that No Medical & Simplified Issue insurance can be an excellent insurance solution for many. But it is not for everyone. Our Licensed Insurance Advisers will help you to determine if No Medical & Simplified Issue Insurance is right for you, or if you would be better served by traditional insurance. Either way, our advisers can take the mystery out of insurance and help you to complete the necessary applications and obtain the insurance that you need.