Tackling your New Year’s resolution to get life insurance

Now that the New Year’s Eve champagne fog has cleared let’s take a look at those resolutions. Currently, the top five New Year’s resolutions are:

1. Spend more time with friends and family
2. Improve fitness
3. Lose weight
4. Quit smoking
5. Enjoy life more

Let’s tackle that last resolution – ‘enjoy life more’. Perhaps you might enjoy life, just a little more knowing that your loved ones would be taken care of, financially, no matter what happens. With this in mind and knowing that this time of year is popular for people purchasing life insurance, here are the top ten tips and points so you can easily get the insurance you need to help you achieve your resolution.

Top 10 life insurance shopping tips

1. Who should buy life insurance? If you can answer yes to any of the following questions, then you should consider buying life insurance.
   • Does anyone rely on you for financial support? If so, life insurance will help to protect their financial well being.
   • Do you have a mortgage, car loan or any other outstanding debts? If so, a life insurance policy can provide a way to take care of these outstanding bills, along with any others like funeral expenses, legal fees, taxes, and medical expenses.
   • Do you own a business? If so, you are liable for the debts your business owes. Your personal assets could be liquidated to pay these debts, which could leave little left for your family. Plus, if you have a partner, life insurance could help them buy out your portion of the business.
   • Do you want to leave money to a charity? You can use life insurance to leave money to your favourite charity.


2. Who you would like to insure? You can get a policy on your own life, for other members of your family, or a joint one for you and your spouse.



3. What would you like your life insurance policy to achieve? Some of the things a life insurance policy can take care of include: pay funeral expenses, pay outstanding balances on your mortgage and other debts, offset the loss of your income for a period of time, and/or contribute to the future education of your children.



4. How much life insurance do you need? Well that will depend on what you would like your life insurance to accomplish. As a result, there is no one-size fits all answer. However, tools like kanetix’s Term Life Insurance Calculator can help. Tools like these will help you find out roughly how much life insurance you'll need to have in order to ensure that your family, loved ones and your debts are looked after in the event of your death.



5. How long will you need life insurance for? Again, this is often determined by what you would like your life insurance to achieve. You can estimate the timing of your life insurance needs by asking yourself questions like: When will my mortgage be paid off, when will my children be finished school, and when will I retire? Also, there are online tools like kanetix’s Term Life Insurance Analyzer that can offer guidance.



6. What type of life insurance do you need? There are two kinds of life insurance: term and permanent. Term life insurance offers protection for a set period of time, usually 10 to 20 years; while permanent insurance provides a lifetime of protection. Term insurance is more affordable than permanent insurance, offering you an opportunity to get a large amount of coverage at a lower cost. Permanent life insurance on the other hand is more expensive than term, as it offers lifetime coverage along with possible savings and investment options. The good news is if you want a permanent-style policy without the savings or investment options, you can go for a Term to 100 policy which offers coverage until age 100.



7. What medical information will you need to provide to obtain your policy? Typically, the more medical information you provide, the better the price. A life insurance policy that asks few or no medical questions will likely be far more expensive then a policy that asks for your medical information. Plus, depending on the insurer, your age, and the amount of coverage you want, you could be asked to provide blood or urine samples. For these, a nurse will visit, at no cost to you.



8. What are the renewal options and requirements of the policy? Most term policies are renewable until you reach the age of 70 or 75. Questions to ask your broker: will I have to take a medical to renew, is the renewal premium guaranteed, and if not how much can I expect my rate to increase at the time of renewal?



9. What are the conversion options and restrictions of the policy? As your life changes, you may want to convert your life insurance from term to permanent. When you purchase your policy, find out if there are any limitations for conversion, like age or into what type of permanent policy you can convert to – the fewer limitations the better.



10. What will the cost be? Well that depends on the individual. The best way to get the cheapest rate is to shop around. Thanks to the Internet, it is fast, free and easy to go to life insurance shopping comparison websites like kanetix.ca, to compare rates. By shopping online, you are sure to find the best deal on life insurance from the major carriers. Click here to get started - shop for life insurance.

Life (insurance) after divorce

When a couple gets divorced, the person making support payments is under no obligation to protect the income they provide if they die. The estate of the deceased ex-spouse is also not obliged to continue any support payments if not stipulated in the original divorce agreement. However, many ex-spouses depend on support payments to live and if children are involved, can be left without the funds necessary to provide for basic needs.

Financial obligations

Family law experts suggest including a clause in the divorce settlement making it mandatory the provider of support payments have a current life insurance policy. These settlements usually include a mandatory minimum coverage amount and often require the ex-spouse be named as the beneficiary. The life insurance policy should include enough coverage to provide the recipients of support payments with an income similar to that which they would have received before the payer's death. In the case where one spouse is paying to help support one or more children, life insurance arrangements should provide enough coverage to ensure each child is cared for until they are an adult.

The benefits of term life insurance

If you are purchasing life insurance to protect income provided to your ex-spouse, term life insurance can be an attractive option. Term life insurance policies are less expensive than most types of life insurance, and the rate is usually consistent for the entire term of the life insurance policy. If the policy is renewable, you can purchase a new one when the current one expires, without having to take another medical.

Since term life insurance is a cost-effective and simple way to purchase life insurance coverage, it is one of the most popular ways to protect payments made to an ex-spouse.

Choosing a beneficiary for the life insurance

The purchaser of a life insurance policy can specify who they want to receive the benefits when they die - even if the intended beneficiary is under the age of 18. This can be important if the supporter is concerned about making sure the proceeds of the policy go directly to the child.

If you choose to name your child as your beneficiary, you will need to set up a trust, governed by a trustee until the child is of a certain specified age. The money doesn't automatically go to your child on their 18th birthday. You can choose to extend the time the trust is in force until you think your child is old enough to be financially responsible.

If you are comfortable that your ex-spouse would properly manage any life insurance benefits, you could name them as the beneficiary, knowing they would still be in charge of providing for your child.

As the recipient of support payments, you may also want to name your ex-spouse as the beneficiary on your own personal life insurance policy as they would most likely become the primary caregiver of your child if you died.

The gift of life insurance

During the holidays our thoughts turn to our family and the future. It should come as no surprise then that this time of year is often when people consider getting their financial plans organized. Life insurance after all, is regarded as an important part of a comprehensive financial plan that offers protection to your family and loved ones.

What's the point of having life insurance?

Life insurance offers you an opportunity to ensure the financial security of your family and loved ones, no matter what happens. Life insurance can be used to:

• Pay off any final expenses or personal debts like credit cards, car loans or a mortgage
• Offset the loss of your income for those who rely on you for financial support
• Contribute to the future education of your children
• Protect your estate by helping to pay the taxes due on an estate upon death
• Leave a legacy to your favourite charity

Who should buy life insurance?

The purchase of term life insurance is often associated with major life events like getting married, buying a home, or having children. However, if these don’t apply to you ask yourself the following questions. If you answer yes to any of them, you’ll want to consider life insurance:

• Does anyone rely upon you for financial support? Whether it’s a spouse, child, grandchild, parent or dependent adult, life insurance will help them protect their financial well being no matter what happens.
• Do you have a mortgage, or any other debts? If so, a life insurance policy can provide a way to take care of these outstanding bills along with any others like funeral expenses, legal fees and taxes, and medical expenses.
• Do you own a business?
  • For sole proprietors, you're accountable for the debts your business owes. If you do not have enough life insurance to cover these debts, your personal assets could be liquidated to pay them off, possibly leaving little left for your family.
  • If you’re in a partnership, a life insurance policy where the other partner is the beneficiary means the surviving owner has the cash easily available to buy out your portion of the partnership from the estate.
• Do you want to leave a legacy? Life insurance policies can be used to leave money to your favourite charity.

How much will life insurance cost?

There's no such thing as a one-size-fits-all insurance policy. Insurance professionals need to look at a lot of different things before they come up with a final insurance rate. They'll consider your age, gender, whether you're a smoker, and your past and current health record. Then they'll balance all that with the amount and type of policy that you're applying for, like a term or permanent policy.

What types of life insurance are there?

Essentially, the life insurance you can buy can be broken down into two basic groups: term or permanent. Permanent life insurance provides a lifetime of insurance protection and usually includes a cash surrender value. You can opt to purchase participating life insurance (where policyholders are eligible to receive dividends), non-participating (where the policyholder will not receive dividends) or universal (where there is an investment component to the policy). Permanent life insurance is more expensive than term insurance, because it offers lifetime coverage as well as savings and investment options. Term life insurance offers protection for a specific amount of time, the term of the policy. The most popular term policies are for 10 or 20 years, but there is also a product called Term to 100 available. A Term to 100 policy means you’ll have coverage until age 100. Term insurance is more affordable than permanent insurance, and as a result, you can get a large amount of coverage at a lower cost. Term life insurance plans offer Canadians the opportunity to meet their immediate life insurance needs while also providing the option to later convert into a permanent life insurance product without having to give any further medical information. Another favourable feature of term insurance is that you are never locked in and can cancel your coverage at anytime without penalty. This is really attractive for those who want affordable coverage, but are not sure they want to make a lifelong commitment.

How can you get started?

Thanks to the Internet, getting term life insurance quotes is fast and easy. Even better, if you want to shop around first, getting quotes online means you can avoid hard-sell tactics by someone sitting across from you. There is no sales pressure or obligation to buy when you get quotes online. It’s easy, can be done any time at your convenience and is simply a better way to shop for life insurance because of it.

kanetix helps you get covered

Get online term life insurance quotes from some of the top life insurance providers in Canada, or contact us at 1-888-854-2503 if you wish to discuss permanent life insurance options with our affiliated life insurance representative. They are available to help you get the answers you need about life insurance. Compare life insurance quotes at www.kanetix.ca/term-life-insurance today.

Is mortgage or term life insurance the best choice for you?

Whether you're buying a home for the first time, or refinancing an existing mortgage, someone has probably suggested you purchase mortgage life insurance. But don't rush into buying a policy until you've looked at all the possibilities. You could end up saving money and getting added life insurance coverage at the same time by purchasing a term life insurance policy instead.

What is mortgage life insurance?

Mortgage life insurance, also known as mortgage insurance or creditor insurance, is offered by most banks and lending institutions. It is a life insurance policy that pays the balance of your mortgage to the lending institution if a person listed on the mortgage passes away.

How does term life insurance cover your mortgage?

When you purchase a term life insurance policy, you take into account all the money your family will need in case you are not around to help out. This includes your mortgage payments.

Mortgage life insurance vs. term life insurance

Depending on your age and health, the premiums on mortgage life insurance can be much higher than what you would pay for a term life insurance policy. Take a look at these comparisons for $250,000 coverage:

For a couple aged	Monthly bank mortgage insurance premiums*	Term 10 monthly life rates**
30	$36.00	$24.53
35	$52.00	$28.13
40	$80.00	$36.00
45	$116.00	$73.58
50	$160.00	$73.58

*Based on the information available in October 2007 from the websites of two major Canadian banks.
**Based on the best rates available for joint coverage (male and female non-smokers) in October 2007, using the kanetix Term Life Insurance Quotemaker. Original rates are shown in annual premiums. For comparison purposes we have shown these annual rates as their monthly equivalent.

What do all these numbers mean?

Well, these numbers suggest that a couple buying a home can get a better life insurance rate if you chose a term life insurance policy over a mortgage life insurance policy from your lender. While getting mortgage insurance through your lender is convenient, a term life insurance policy might be the way to go if you're looking to save money.

Extra coverage with term life insurance

A term life insurance policy gives you added coverage and flexibility over a mortgage life insurance policy;

• The beneficiary of a mortgage insurance policy is the bank, whereas your family receives any payout from your term life policy directly. This gives them the flexibility of using the money to pay off debts, or, if they can still carry the mortgage payments, they can use it for investing and securing a future income.

• Mortgage insurance policies only cover you for the amount of your mortgage you owe to the bank. As you pay down your mortgage, your coverage amount decreases with it. This is called a reducing balance. With a term life insurance policy, you have a constant level of coverage for the whole term and are getting better value for your monthly payments.

Shop, compare and save

When purchasing your new home, take the time to shop around for life insurance. Compare the cost of a term life insurance policy to a mortgage insurance policy. Chances are you'll find a term life insurance policy will have lower yearly premiums and offer more coverage and flexibility than a mortgage insurance policy.

For more information about term life insurance, see the kanetix Quickguides for an "Introduction to life insurance in Canada."

Compare life insurance quotes

Compare your own set of life insurance quotes from Canada's leading providers with the kanetix Life Insurance Quotemaker. See how much you could be saving!

Please Note - Some insurance companies have different rules about what is covered and under what circumstances. The above information is for general reference only. Please check with your insurance provider for exact coverage rules and regulations.

Buying a home? Cover your assets with life insurance

If you are buying a home, chances are someone will suggest you buy life insurance—usually mortgage life insurance or term life insurance. Doesn’t really matter which, because life insurance is life insurance, right? No way.

Mortgage life insurance and term life insurance: Let's talk price

Mortgage life insurance rates-- With mortgage life insurance you pay a premium rate per $1,000 of your mortgage balance. This premium rate is the same for everyone in your age bracket in part because fewer, if any, health questions are asked resulting in relaxed medical underwriting. Depending on a person’s health, this will benefit some people more than others.

Mortgage life insurance pays off your mortgage if one of the people listed on the loan dies before it’s paid. Because with each payment your mortgage decreases, so too will your life insurance coverage. Your payments on the other hand will not. This means that with each payment made to your mortgage, the cost for your mortgage insurance gets more expensive.

Term life insurance rates-- Term life insurance rates are usually more affordable than mortgage life insurance because some medical questions are asked. While this may seem odd, the fact is, because the insurer knows your health status they can offer you the best available rate—they don’t have to take into consideration “the good, the bad and the ugly” of the rest of the group. You pay your premiums based on your current status only, no one else’s.

With term life insurance you can cover more than just your mortgage. You choose the amount of coverage, so if you want to have enough to pay off the mortgage, other debts (like car loans or credit cards), or for the regular living expenses of the surviving family members—you can get it. What’s more, the coverage you get and the premiums you pay are set for the length of the term you’ve chosen, often 10 or 20 years.

Mortgage life insurance and term life insurance: Policy points to ponder

Mortgage life insurance	Term life insurance
The amount of coverage is determined by how much you owe on the mortgage.	You determine how much coverage you want.
The beneficiary is the mortgage lender.	You choose the beneficiary.
If you move your mortgage to another lender because of a better interest rate, you will have to qualify for a new policy.	So long as you keep the policy active, your coverage will follow you regardless of who you have your mortgage through.
If you sell your home for another, you’ll have to get and qualify for a new policy.	So long as you keep the policy active, your coverage will follow you regardless of how often you move.
Once your mortgage is paid, you no longer have coverage.	Once your mortgage is paid, you can keep your policy for as long as you like.

There’s more to your family then the family home

While mortgage life insurance may be convenient - you can get it from your mortgage lender - it only pays what's left of your mortgage. What’s more, you often pay more than a regular term life insurance policy for this convenience. But what about the rest? Term life insurance offers coverage that can be used for anything, including funeral expenses, paying down a mortgage, car loan and credit cards, or to offset the loss of income into the family finances.

When purchasing your new home, take the time to shop around for insurance. Compare the cost of a term life insurance policy to a mortgage insurance policy. Chances are you'll find a term life policy will have lower yearly premiums and offer more coverage and flexibility than a mortgage insurance policy.

Compare term life insurance quotes today.

Term life insurance: Money-saving tips (they do exist)!

Term life insurance is the most affordable way to protect your family’s future. As inexpensive as term life insurance is, there are money-saving tips that will ensure you are paying only what you need. Get the most value for your dollar by checking out the following helpful tips that will save you money while still getting great protection.

1. Get life insurance coverage early...the younger you are the less your annual premiums will be.

Some people are gamblers by nature and choose to take their chances by skipping out on life insurance when they are young. Although it is unlikely you'll die during your working years, you're not insuring for what's likely to happen but instead, for the worst-case scenario. That's why term life insurance is inexpensive for young, healthy people. Buying life insurance when you are young means you'll be providing financial security without spending a lot of money for it.

For example, if we look at the cost to purchase a $250,000 Term 10 life insurance policy you’ll see how delaying purchasing a policy by just a few years could cost you more in annual premiums. The Term 10 life insurance policy was chosen here because it is the most popular life insurance product sold in Canada.

Age	Premium - Male	10-year Total Cost	Premium - Female	10-year Total Cost
30	$203	$2030	$153	$1530
35	$215	$2150	$173	$1730
40	$260	$2600	$215	$2150
45	$373	$3730	$273	$2730
*Lowest quote offered online at kanetix for a non-smoker in January, 2007. Premiums shown are the premiums if paid annually.

2. When your age, isn’t really your age.

Your next birthday may be 6 months away but in the eyes of most life insurers you’ve already hit that next magical number. When you get a life insurance quote, the rate you are given is usually based on the age you are closest to which, 50 per cent of the time is your age at your next birthday. It’s a term called “Age Nearest”, and that half-year price increase could really add up. See the difference yourself.

Age	Premium - Male	10-year Total Cost	Savings	Premium - Female	10-year Total Cost	Savings
35	$215	$2150	$100	$173	$1730	$70
36	$225	$2250		$180	$1800
40	$260	$2600	$230	$215	$2150	$130
41	$283	$2830		$228	$2280
45	$373	$3730	$270	$273	$2730	$250
46	$400	$4000		$298	$2980
*Lowest quote offered online at kanetix for a non-smoker in January, 2007 for $250,000 in coverage. Premiums shown are the premiums if paid annually.

3. If you’re a smoker ask about incentive programs aimed at helping you quit.

While not all life insurance companies offer incentive programs to help you quit, some do and could save you money if you are thinking about buying life insurance and quitting smoking. For example, one such company will refund you an amount equal to the difference between the premiums you already paid as a smoker and those you would have paid had you not smoked. What’s more, once you quit smoking, this same company will adjust your premiums to non-smoker rates based on the age you were when you purchased the life insurance policy, not the age you are at the time you quit!

4. Check out your payment/billing options.

Many life insurance companies offer discounts to consumers who pay their annual premiums up front. If you have the money handy, you could save anywhere from 3.5 to 12 per cent of your policy’s premium each year. Check it out:

	Male		Female
Age	Annual cost if paid in advance	Annual cost if paid in monthly installments	Annual cost if paid in advance	Annual cost if paid in monthly installments
30	$203	$219	$153	$165
35	$215	$233	$173	$187
40	$260	$281	$215	$233
45	$373	$403	$273	$295
*Lowest quote offered online at kanetix for a non-smoker in January, 2007 for $250,000 in coverage.

With these money saving tips in hand, term life insurance is more affordable than ever. There is no better time than now to get the coverage you and your family need.

Life insurance rates are on the decline

During the last few years, Canadians have increasingly benefited from reductions in term life insurance premiums making this already relatively inexpensive life insurance product even more affordable.

Everyone benefits

Improved life insurance rates are not just available for a select few. Lower life insurance premiums are seen across almost all the kanetix term life inusurance quotes, regardless of your age or gender.

What does it cost for life insurance?

Term 10	Term 20
Term 10 life insurance, the most popular Term product in Canada, offers a premium guaranteed not to change for 10 years. A non-smoker seeking $100,000 in coverage could be paying as little as: Annual Premium Age Male Female 30 $125 $101 35 $129 $109 40 $154 $130 45 $199 $155 50 $270 $214	Term 20 life insurance, popular with young families, offers a premium guaranteed not to change for 20 years. A non-smoker seeking $100,000 in coverage could be paying as little as: Annual Premium Age Male Female 30 $150 $125 35 $166 $140 40 $209 $164 45 $307 $223 50 $470 $333
Quotes obtained from the kanetix website January, 2007. Lowest quote shown.

Why consider life insurance?

From the time you marry, buy your first home, start a family and enjoy retirement, life insurance means you and your family have the financial security to reach your goals.

With the affordability of term life insurance, there is no better time than now to get the coverage you and your family need.