The following is a list of special product highlights, features and new developments from Canadian term insurance providers:
AIG Life of Canada
The insurer offers a multi-policy discount for associated policies. It also features a joint survivor option and a double benefit option.
For its simplified T-10 product, AIG does not require medicals or fluids. Minimum death benefit is $100,000 for all ages. Note that the maximum issue age of this product is 50, as opposed to 75 for the preferred T-10.
The Canadian subsidiary of the French giant officially offers an extreme disability benefit. An automatic indexation privilege that is available at no extra charge
Blue Cross introduced a T-100 included in its platform product Tangible, launched in 2007.
A rare incursion into term life insurance for this insurer, the new T-100 product is payable either for 100 years, 20 years only or until age 65; it is then paid up.
Desjardins Financial Security
At DFS, there are no policy fees for an additional T-10 policy. T-10 is also available as a rider in universal life. In addition, legal assistance is included at no extra cost.
and Great-West Life
The policy fee at Canada Life was halved, from $40 to $20. The conversion deadline is now age 70 or two years after the policy is issued, if the issue age was 69 or later.
Great-West has upped the renewal limit to age 85 from 75. The maximum issue age was increased from 65 to 75. The term rider is now available at preferred rates when it is added to universal life.
At the first renewal after the insured has reached age 75, the premium becomes level until age 100, and is totally paid up after that. Coverage increases by 5% on each subsequent anniversary.
The Axis product includes T-20 R&T and T-100 as basic insurance for T-10.
Pick a Term (see main article) offers a renewal at annual renewable term (ART) cost, and the choice between a level or decreasing insurance amount. ART renewal can be extended until age 100. Preferred rates are offered on this product for a minimum insurance amount of $200,000. Alternatively, the minimum insurance amount is $20,000 and there is no minimum premium.
The Quebec insurer stands out because of its term product Source, which staggers the payment of the insurance benefit rather than disbursing it in a lump sum as all the other products do.
This term life insurance thus offers guaranteed monthly non-taxable payments, either decreasing or for a fixed duration. The choice of payment varies between $500 and $10,000 per unit of $100. The fixed duration of payments is 15, 20 or 25 years, and is selected at purchase time in the form of a guarantee.
In the case of decreasing payment, if a client age 45 buys a 20 year guarantee and dies at age 55, the beneficiary will receive a monthly payment for 10 years.
This product is convertible until age 65 and is non-renewable. Issue ages are 18 to 60.
RBC Insurance’s T-10 policy comes with an exchange option. Insured can exchange their T-10 for a T-20 without proof of insurability. This exchange must take place before the earlier of the fifth policy anniversary and the policy anniversary nearest the insured’s 60th birthday.
Sun Life Financial
Sun Life’s T-10 is also available in Sun Life T-5 and Sun Life 20.
The Quebec mutual insurer stands out in the T-10 market because of its automatic indexing guarantee. Under this guarantee, the initial insured capital of the Superior T-10 is automatically indexed by 10% without proof of insurability, at each anniversary of the contract during the first ten years of coverage.
UL Mutual uses the premium rates based on the age reached for the remaining duration of the initial period. Insured that refuse annual indexing are ineligible for subsequent indexing.
UL Mutual also offers a special conversion based on the original age. During the first five years of the contract, insured are permitted to convert their T-10 into another product, depending on the issue age of the policy. Premiums paid into Superior T-10 can be applied to premium instalments in the new permanent product. For partial conversion, the premium credit is applied proportionately.UL Mutual also has a T-5 product.
The insurance subsidiary of Bank of Montreal, BMO Life, offers a product with choice of terms ranging from 10 years to the insured’s 85th birthday.
This means that if you submit your proposal at age 44, you can select any term between 10 years and 41 years. Insurance amounts are available per thousand dollar bracket, and range from $25,000 to $5 million.
BMO Life is vying with the traditional distribution network by offering quick T-10 quotes online or through its call center. Clients simply answer a few questions about tobacco use, drug use and family medical history. If BMO Life needs slightly more time to examine the proposal, it supplies free accidental death coverage at an amount equal to that of the insurance requested, to a maximum of $100,000.
Manu and Costco
Of note, members of Costco retail outlets can now procure term life insurance underwritten by Manulife Financial for amounts ranging from $50,000 to $500,000, per $25,000 bracket (clients receive a 10% discount for insurance volumes of $250,000 or more). Non-smoking rates are available, and insured that are diagnosed with a terminal illness and are given less than 12 months to live can withdraw 50% of their insurance amount. Coverage to 80, and have conversion rights until age 75.