Our Products

Get more coverage while paying less in premiums.

Quick Tips:

• Some providers allow for non-smoker ratings for occasional cigar or pipe use. Ask us for more information.
• If you are taking medication to control blood pressure or cholesterol levels and it is working, you will likely qualify for standard issue.
• In Canada, an alarming percentage of people qualify for a better health class rating, and subsequently lower premiums. Often the plan they currently hold life insurance under, is far from competitive.
• There are numerous tax smart insurance options to benefit the self employed and small business owners.
• Tax implementations can make a huge difference in the money paid out to a deceased person’s beneficiary.
• Death benefit, survivor benefits and pension life Insurance payment are just some of the synonyms used for similar products, including whether insurance or pension money is paid out.

Life Insurance Policies: Life insurance policies contain seemingly countless provisions, clauses and options that determine the type and scope of coverage as well as what will happen if premium payments lag or a claim is made. It is important to understand the provisions of the policy you have or any one you’re considering.

Incontestable Provision: With this provision, the insurance company may not contest any claims following a specific period of time from the initiation of the policy. Of course, this is not a license to commit fraud, and the discovery of fraud will lead the company to contest any claims and possibly pursue criminal charges.

Suicide Provision: With this provision, suicide within a specific period of time after the initiation of the policy will result only in the return of premiums plus interest. After that period, a claim on a death due to suicide will lead to a full payout.

Reinstatement Clause: With this provision, if premiums are not paid in a timely fashion and the policy lapses, it may be reinstated within a specific period of time if the policy holder remains insurable. This option must be weighed against the potential benefits and downsides associated with a new policy. These might include changes in premium costs and the resetting of provisions for contestability and suicide.

Excluded Risks: Depending on the policy, death under certain circumstances like war or an aviation accident may not be covered. Be sure that all risks you are looking to protect against are covered in your policy.

Settlement Options: There are a variety of options available for payout. The simplest is a lump sum payment of the value of the policy. It is also possible to leave the entire settlement with the insurance company and collect interest, retaining the right to withdraw principal funds at any time. Payment schedules are also available based on payment amount or duration. In either case, interest will accrue on the money that remains with the insurance company. There are also a range of options that pay benefits over the entire life of the beneficiary. Any decision on settlement options must take into account the current and future financial

prospects of the beneficiary and his or her dependents, so the best option will vary from case to case.

Life Insurance Don’ts

Life insurance can play an important part in an individual’s overall financial plan. Here are a number of common practical mistakes that could prove costly yet can easily be avoided.

• Naming the estate as beneficiary

  This brings the policy proceeds back into the probate estate where it will be subject to fees and expenses, inheritance taxes and creditor claims.

• Failing to name backup beneficiaries

  Without backup beneficiaries, if the original named beneficiaries die first, it’s back to mistake #1. It might be a good idea to do this with other tools as well such as wills, trusts, and retirement plans.

• Failing to do insurance policy check-ups

  It’s a pretty solid strategy to review policies every few years or so to look for changes in needs as well as changes in the family.

• Mismatching the product with the problem

  Check-ups will often point out situations where there is the wrong type of policy for current needs, new types of policies may address needs better, or the old needs have changed.

• Inadequate coverage for family security

  Family needs change over time. Analysis of survivor needs upon death or disability of a spouse, as well as the spouse’s expected lifestyle, could provoke policy updating.

• Policy payable outright to minors

  Guardianship or custodian proceedings can be a burden for survivors. Look into a trust or a settlement option with restricted payouts to provide for minor children.

• All life insurance owned by the insured

  Where there is a taxable estate, the insured might as well have named the revenue agency as a partial beneficiary. Getting it out of the estate through outright gifts or through a trust and then donating cash annually that can be used to pay remaining premiums can be a significant wealth preserver.

• Not maximizing business-sponsored benefits

  Where individuals have some control over a small, closely held business, they should look into the cash flow and tax-effectiveness of the business providing and paying for the insurance. Consulting a professional in this area is a wise move.

• Overusing term insurance

  Remember, term insurance runs out eventually while it also becomes more expensive. Re-evaluate needs and see if permanent products can address them better as time passes.

• Buying life insurance as though a commodityNot all life insurance contracts are alike. The lowest price and the highest return do not necessarily mean it’s the best policy. Guaranteed cash values and other features, plus service and experience of the broker as well as strength of the company are very important.

Of course, the correct uses of life insurance can only be recommended with the help of a professional who can address the specifics of your particular financial situation. Be sure to contact The Delsan Group to avoid these mistakes within your financial plan.

Delsan Group is there for you, to serve your needs in financial services, financial security and advice.

For more information, contact the Delsan Group.