Life Insurance Brokers in Canada
Life Insurance Brokers in Canada
An Life Insurance brokers in Canada is a professional who specializes in selling life insurance from various insurance companies. The main difference between a broker and an agent is that the agent sells insurance from a single company. Meanwhile, a broker represents multiple companies giving them more options to find you the most suitable coverage.
Licensing in Canada
In Canada each province is responsible for the licensing requirements for Life Insurance brokers in Canada. The life insurance industry is active and ever changing, and can be complicated; a professional broker is a necessary resource when you are shopping for life insurance. Brokers are tasked with keeping knowledgeable about the latest policy offerings and industry trends.
Facts about Life Insurance Policy Backdating
Life Insurance Policy Backdating
Life insurance policies are priced based on your health, family history, lifestyle, occupation and the most key factor, your age. In most cases the insurer will use age nearest i.e. which birthday are you closest to. However, there are some instances where a client can take advantage of Life Insurance Policy Backdating.
It is legal to backdate a life insurance policy by up to 6 months to help you get the lowest possible price for that age. While this can save you money, you need to be aware that you’ll have to pay the premiums for the months covered by backdating. You’ll have to do the math to see if the overall savings realized are beneficial.
What is Guaranteed Issue Life Insurance?
What is Guaranteed Issue Life Insurance?
Guaranteed Issue life insurance is a type of life insurance policy where acceptance is literally guaranteed. However, there may be restrictions for the first 24 months of the policy. For example: it may only pay for an accident for the first 24 months, after that the policy would pay for any cause of death. This might sound ideal, but it comes at a price, literally. This means if you are considering this type of policy, be absolutely sure that it’s truly your best option. An advisor may be able to save you substantially on your premiums with a more traditional form of life insurance, and get you better coverage in the process.
Life insurance to fund a buy-sell agreement
Protecting your business for the future
Why do we need a buy-sell agreement?
A buy-sell agreement sets out the terms under which the interest of the disabled or deceased shareholder will be sold. It also contains provisions for the transfer of ownership when you retire. As well, if properly funded, the shareholder’s family will receive fair market value for the shares. Thus, providing them with capital to help maintain their standard of living. Funding your Buy-Sell agreement with a Life Insurance policy may be right for you.
A properly Life Insurance funded buy-sell agreement can:
- Assure creditors that funds will be available to pay bills.
- Assure existing employees that the company will have the means to continue
- Ensure a market for each shareholder’s interest in the business
- Set the terms under which you and your fellow shareholders agree to buy and sell each others’ interest in the business
- Ensures surviving shareholders have the necessary funds required to buy out the deceased shareholders interest
- Provide for your family in time of need.
Preserve your wealth
A strategy to protect the value of your legacy
The Preserve your wealth strategy is designed for individuals who:
- Have built-up significant wealth in capital assets
- Have a second property that has appreciated in value
- Want to keep a vacation home in the family
- Are worried about leaving their family with a large tax burden
- Want to leave their full estate to heirs or favourite charity
- Want to provide funding for final expenses, outstanding debts, legal fees and taxes
The situation
You have worked hard to achieve a degree of financial success. As each year passes and you become financially independent,
