Canada Life - Two Needs One Discount

Canada Life's dual solutions premium reduction allows clients to satisfy two seperate needs and receive a 5% discount on each product. Depending on the size of the policies this can translate into significant.

Critical Illness pays out a lump sum tax free payout if the insured is diagnosed with one of the listed illness - this money can be used to cover one time out of pocket expenses such as home renovations or medical treatments outside of Canada.

Disability Insurance is used as an ongoing income replacment vehicle. Seperate needs often require seperate solutions and the dual solution premium reduction makes solving this need more affordable.

There are certain exclusions Premium reduction is only available if both policies are taken out simultaneously It is not available on critical illness conversions. It is not available on disability future insurability options It is also not available with any other premium reduction program.

Canada Life Term 10 and Term 20

Canada Life one of Canada's oldest and most reputable life insurance companies has a very well priced traditional Term 10 and Term 20 plan. The plans are renewable and convertible to any of their permanent policies. Both plans have a $100,000 minimum face amount and the Term 10 plan is available to applicants 18 to 75 while the Term 20 plan is available to applicants age 18 to 65.

Canada life offers preferred rates for those who qualify on amounts over $250,000 on both smoker and non smoker policies. The plans also have the following riders/benefits available as ad-ons: accidental death benefit, guaranteed issue rider, waiver of premium rider, limited waiver of premium rider and children's life insurance rider. The children's life insurance rider is available in multiples of $2,500 up to $25,000. It covers all children natural, adopted or step children of the insured up to age 25 and they can convert up to 5 times their coverage without a medical to a permanent plan.

On the downside the $100,000 minimum face amount makes it problematic for older applicants on a tight budget to cover a temporary insurance need like a mortgage or business loan.

Canada Life's Disability Plan

Canada Life offers 4 types of disability plans: lifestyle protection plan; independence plan; overhead expense plan and a buy/sell plan. Its flagship disability product is their lifestyle protection plan. The plan is non cancelable (i.e. you can cancel the plan but the insurance company can't) and is guaranteed renewable. The policy is designed for professionals, business owners and executives. The plan is very flexible providing basic injury and illness protection but allowing the applicant to choose from a host of riders which enhance your level of protection. One unique feature is their "own occupation" feature which ensures the insured will be entitled to claim under the plan as long as an injury or illness prevents them from doing their own occupation. This can advantageous especially for highly skilled professionals such as surgeons.

You can also add a cost of living feature which allows your benefit to stay in-line with inflation. Future income options allow you to upgrade you coverage as your income increases without any additional medical requirements.

Another very popular feature is their return of premium benefit which returns 50% of the eligible premiums paid after 7 years if no more than 20% of your premiums have been paid out in claims. An example of this is an individual who contributes $20,000 to their Canada Life disability plan over 7 years and remained healthy for the entire 7 years. The insured would receive $10,000 back. Therefore the net cost of the coverage is $10,000.

Canada Life's independence plan is geared towards the blue collar worker. The coverage is more limited than their lifestyle plan and is available with or without protection from illness related disabilities. The latter is available without a medical.

Canada Life's Universal Life Plan

Canada Life's Universal Life plan is available with face amounts as low as $25,000 and issue ages from 0 to age 85.

The plan also allows you to choose between multiple cost of insurance (COI) options including an increasing COI which allows the applicant to focus on cash accumulation in the early policy years.

The also have a level COI which guarantees your rates are fixed for life and quick pay COI options which allow you to COI charges to end after 10, 15 or 20 years. Their universal plan has a full host of guaranteed and market based investment options.

Best is of all is the Canada Life's universal life plan qualifies for their "astra program" This program gives a 50% reduction in premiums to all rated policyholder. A rated policy is one which the insured is charged an extra risk premium to certain health or lifestyle issue.

The savings can be dramatic. An example would be a 45 year old male non smoking diabetic who applies for $250,000 of universal life level cost coverage. Let's assume the insured is rated plus 50% for his diabetes; the minimum premium (i.e. the premium to keep your plan Inforce) is $259.57 a month - with the astra program the same individual's premiums reduce to $176.45 a month. This can have a tremendous impact on the premiums you pay over the life of the policy.

The plan which is one of the best is the industry does have a surrender charge on all withdraws in the first 10 policy years.

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