What age should I consider Life Insurance?

Right now, you may never have the chance to get it in the future. You can apply for life insurance early in life which if you qualify you can get insurance at a lower cost. Getting it earlier in life lowers the risk as you may not be able later in life due to health changes. If you plan on having a family someday or a mortgage it is advantageous to buy it now. We never know when death will occur as it has no respect to your age.

What Products are available to me?

Bayside Associates, as a true independent brokerage, offers various forms of products through the very best Insurance companies in Canada. We work with you to obtain the best possible rates available in today’s market. For those that qualify we can provide such products as:

  • Life and Critical Illness
  • Term to 100 Life Insurance
  • Term Life Insurance
  • Whole Life Insurance
  • Universal Life Insurance
  • Mortgage Life Insurance
  • Joint Life Insurance
  • Critical Illness Insurance
  • Disability Insurance
  • Final Expense Insurance
  • Disability Insurance
  • Travel Insurance
  • Annuities
  • Segregated Funds

Are premiums expensive?

Term life insurance is the least expensive form of all life insurance if you require the insurance for a short period of time. With a term life policy, the policy can provide protection up to age 80 on most contracts. The actuaries compute what the odds are based on your age, gender, smoking status and lifestyle. If you live past the term, they will never have to pay the death benefit. With a permanent life policy, the insurance company knows that they will have to make payment unless you let the policy lapse or cancel the coverage. This is why a permanant policy is more expensive than a term policy.

The cost of life insurance goes up as you get older and the type of policy you take will determine the length of the term that the premiums are guaranteed if you qualify medically and continue to pay the required premiums. If you are not healthy it can cost you more than the average person and becomes more expensive the less healthy you are. This is why it is important to buy your life insurance now before your health changes. However, if you purchase a term insurance policy and you have it and your term is almost up for renewal and you can still qualify as a healthy applicant you could apply to get a new policy at a lower rate and save money by not having to pay the renewal rates on your existing policy. However, it is very important not to cancel your existing contract until your new one is in force in the event you are uninsurable due to a health issue. In most cases your existing term life insurance policy is guaranteed to be convertible so should you find yourself uninsurable we can work with you to turn it or a portion of it into a permanent policy. With the assistance of our knowledgeable representatives at Bayside we will assist you in obtaining the right policy which will be the right solution for you and provide you with an understanding how policies are priced which over time will save you money.

How do I obtain life insurance?

When you decide which life insurance plan is right for you, contact us online and one of our representatives will contact you to arrange completion of all required insurance company forms. An insurance medical health assessment will be required and one of our client service team members will arrange a time and place that is convenient for you to complete the necessary life insurance health assessment. We will handle all the details to obtain your coverage as quickly as possible. Once you have been approved, your policy will be delivered to you for your review and you will have 10 days to review the policy contract and during that 10 days if you choose you can rescind the contract and receive a full refund from the insurance company within that 10 day specified period of time.

What happens if I have a pre-existing condition can I still apply for Life Insurance?

Pre-existing medical conditions make you a higher risk for the insurance company however, it is possible to get life insurance with a pre-existing condition. At Bayside Associates we operate under a true brokerage system so we have the ability to access all of the insurance companies and have developed strong relationships with aggressive underwriters with the top insurers in the country and are experienced in "impaired risk" cases and will present your case in the most favorable way.

At the point of application you need to put together all the facts that you are aware of relative to your pre-existing medical conditions as you will need to make a full disclosure that includes the names of the diseases or disorders with which you've been diagnosed with as well as the medications or treatments that you have been prescribed. Bayside Associates Representatives and our licensed client service team will assist you to create the positive aspects of your health on your application and we will apply to a few insurance companies that are most likely to make an offer and will walk you through the health assessment in advance to ensure the best possible results. Often, after several years and proven recovery, even with cancer survivors can get slightly standard priced policies.

What are the dangers of having mortgage Insurance through the bank?

Having your life insurance through a bank only pays off the balance of your mortgage. As you pay down your
mortgage the death benefit decreases however the premium stays consistent during this time.

I have Life Insurance through work, so why would I need more?

If you were to leave your employer there are no guarantees you can take the coverage with you, some group plans allow you to convert the policy but your individual rates will be much higher compared to buying one on your own. The average Canadian will change jobs over their lifetime and owning your own life insurance policy makes sense as you will have it as long as you are paying the premiums and you still want and need the coverage. Most group insurance offered by your employer only cover you for a very small amount and typically falls under a formula of two times your income where reality is typically for income replacement alone you should be looking at about ten times income to cover off your income in the event of your untimely passing plus final expenses.

I have life insurance coverage I got years ago, is a new policy better for me?

A consumer would replace a policy with a new policy to put themselves in a better financial position in the future. The two-year contestable period begins again under a new policy. During this period, if you die and the insurance company finds out that you gave wrong information on your policy application, the insurance company won’t pay the death benefit. A new policy will be a good thing and save you money if health or mortality improvements across the general population occur as they may result in the accuracies re-pricing insurance coverage at a lower cost. Always make sure your new policy is in force before cancelling an existing policy. A new life insurance policy may have more desirable features or benefits. A new policy is advantageous cost wise if you medically qualify for coverage versus accepting the much higher renewal premiums.

Which policies have the best guarantees?

Life Insurance policies all have different qualities and guarantees whether they are Term, Universal Life or Whole Life. Term Life insurance will offer a guaranteed death benefit and a guaranteed premium payment. Whole Life on the other hand may also have a guaranteed premium and death benefit but the life insurance company maybe allowed to make adjustments to the premium or the death benefit portions that are not guaranteed. Universal Life contracts can be both guaranteed and non-guaranteed depending on how it is structured. At Bayside Associates we help our clients acquire Universal Life policies that have the following qualities; guaranteed cost of insurance, guaranteed expense charges and transparent investment options. We work closely with our clients to determine which are the best guarantees for their current situation.

How often will the premiums go up?

Depending on your obtained age you can purchase term life insurance contracts based on 10, 15, 20 and 30 year terms. The premiums are guaranteed not to increase for the life of the term period. The longer the term period of the contract, the higher the premium will be because it is more expensive to insure someone over more years and this is reflective of the premium. At the end of the term period, your premium can increase dramatically; therefore it is important to choose the proper contract and to be aware of when that term ends. There are other forms of life insurance contracts that you can purchase that have fixed premiums that cannot be increased as they are completely guaranteed at the time of purchase.