Category Archives: Canadian Life Insurance
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.
Excuses for Not Having Life Insurance
As a Canadian insurance broker I have heard many excuses over the years as to why people won’t buy life insurance, here is a small list of the most common excuses.
- I don’t want to leave money to my spouse; after I die they are just going to spend it with their new partner.
- I’m totally healthy I will buy it when my health starts to fail
- We like to travel 2 or 3 times a year and we can’t afford any new expenses right now.
- My kids can deal with it when I’m gone.
- My father and mother lived into their 90s.
- I don’t believe in life insurance,
Life Insurance … What is the Underwriting Process?
Life Insurance Underwriting
Determining Cost
Life Insurance Underwriting is a process that determines the risk of insuring a person. Therefore, underwriting involves looking at the application and evidence. This provides the information to determine the risk the insurance carrier takes in insuring this individual. Ultimately, this calculation is translated into the cost of the policy. This means the more risky the individual is to insure, the more the policy will cost.
How Long does it take?
The underwriting process generally takes about 4 to 6 weeks. Sometimes, Attending Physicians Report (APS) is required this could add several more weeks. An APS is a report from your doctor summarizing your health history.
How is Life Insurance Evaluated?
Factors an insurance underwriter use include;
