Why Life Insurance for Children is Important

What many people think about life insurance, they usually don’t think of children? Most people think that life insurance is something for adults. This is because many adults take out life insurance in order to protect their families in case of their early demise. However, there are a number of companies, especially in Canada, that are geared towards providing life insurance for children. Just as many people prefer to make sure that their children are properly prepared for school, there are parents that consider the financial stability of their children and want to make sure that they are okay in the future. In order to do this, some parents seek out life insurance for children. A number of popular Canadian life insurance companies such as Canada Life, BMO Life and Assumption Life all provide life insurance for children at various rates. Those parents that want to know for sure that their children are protected in the future should seriously consider obtaining some form of life insurance for their children.

Why do Children Need Life Insurance?

Even though insurance companies promote life insurance for children through television commercials and pamphlets, not everyone is really sure why children need life insurance. In fact, many financial professionals are split on whether or not life insurance for children is even needed. Those that support the need for children to have some form of life insurance state that it is a way for parents to ensure that their children are properly protected. Since parents have no idea what could happen to them over the course of their children’s lives, having an insurance policy in place for the children is something that is seen as being very security minded. However, there are other financial professionals that believe that life insurance for children in not necessary. It should be noted that some parents that know they have a terminal disease will take out life insurance for their children so that they know their child will be taken care of financially in the future. Ultimately, the decision to obtain life insurance coverage for children is based on the parents’ desire to make sure children are protected financially in the future.

Type of Life Insurance Coverage

When considering life insurance for children, there are several options available. The three main options for life insurance coverage for children include term, whole and universal life insurance. Term life insurance provides coverage at a fixed rate for a certain time period. For example, a parent can purchase life insurance for their children at a term of 25 years. During these 25 years, the parent will pay a fixed rate per month. Whole life insurance is highly preferred by some parents for life insurance for children. This particular type of life insurance covers a child for the duration of their life. With this type of insurance that parent pays a fixed amount usually annually, but this can vary. As long as the premiums are paid, the child will receive coverage for the duration of their life. Finally, there is universal life insurance. This type of life insurance for children is considered to be the most comprehensive of all the insurance that is available. It not only provides insurance coverage for the life of the child but it also has an investment account attached to it which allows the insurance policy to increase in value. No matter which type of life insurance for children is decided upon, it is important that parents really consider which type of coverage they would like their children to have.

Life insurance for children is a very effective way to make sure that youngsters have a firm base of financial security in the future.

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Marijuana and Life Insurance

Various surveys have shown that partaking of Marijuana is quite popular in Canada, not only with the stereotypical student and young users, but with the well to do middle class as well. Some statistics show that over 50% of Canadians believe that the drug should be legalised and taxed like normal cigarettes.

So how does using Marijuana affect your prospects of getting life insurance?

First of all life Insurance companies are going to treat you like a smoker, someone who has a greater chance of contracting some sort of life threatening condition because they inhale smoke on a voluntary basis. Even although medical data has shown that Marijuana is actually safer than cigarettes; which contain dangerous carcinogens, the life insurance company will tar you with the same brush – forgive the pun.

Next, you have to consider your usage of the drug. Is it rare, occasional, or frequent?

If you have smoked Marijuana within the last year, you should still declare it on your life insurance policy application form, and you will probably be given a standard smokers policy.

(A person is considered by insurance companies to be a non-smoker if they haven’t smoked for over a year).

If your use is occasional, then there is no getting away from it – you will be given the more expensive smoker’s policy.

If your use is frequent, your life insurance company are probably going to ask you questions; specifically, “Why”. Most frequent users of Marijuana are using it for medical benefits, which implies that there is an underlying medical condition that your insurance company will want to know about.

This brings us to a thorny subject, telling your life insurance company about your usage. Marijuana is still illegal with the exception of a few places that allow it to be prescribed for medical use. So you are going to have to confirm on a form that you partake in an illegal activity.

This may put a lot of people off, admitting to their usage of an illegal substance.

(If you are asked to complete a life insurance form for a company funded insurance scheme, you should consult with your personnel department and ascertain what level of confidentiality is maintained with regards to the contents of your form).

If you use Marijuana, you must put it on your life insurance application, not because it is illegal not to do so. But because if you die and the medical examination shows that you were a marijuana user your life insurance company is well within its rights to refuse to pay out on your policy. (Similarly if you are a smoker and don’t tell the insurance company, they will refuse to pay if they find out after your death that you were) 

For frequent users you have to be a little more careful, you should use or consult with an life insurance agent before approaching a company with a view to asking for a life insurance policy. An insurance agent will be able to tell you which companies are likely to accept you and which will probably turn you down. You need this information before you apply for a policy because if you are turned down for an insurance policy, you are legally obliged to tell any other insurance company you apply to that you have been turned down for a life insurance policy in the past.

“Have you ever been turned down for Life Insurance ?” is part of a standard life insurance application, and will affect how a life company treats, and charges you.

Some life companies will allow you to ask them if they are likely to turn you down based on the contents of your application, without actually processing the form and generating an official insurance refusal.

So, in conclusion, getting life insurance if you are Marijuana user is not that difficult. You will be expected to pay a standard smokers premium if you are a rare or occasional user. If you use the drug  regularly or for medical reasons then not only will you be placed in the smoker bracket, you will also have to undergo the same procedure as anyone else who has a notable medical condition. You will need to divulge the condition and face the prospect that some life insurance companies may deem you too great a risk to issue you with a life policy.

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Obtaining Life Insurance for a Key Employee

There is always that one individual that is an essential person to a business. Whether this person is the founder, a partner or a creative force, they are what is considered a key employee. The key employee is so valuable that a number of businesses and organizations have actually taken to obtaining life insurance for a key employee. There are a number of reasons why some businesses and organizations do this. Just imagine that the key employee is suddenly no longer part of the company because of an illness or worse death. Many times, the loss of the key figure in a business can spell significant trouble for a business’s bottom line and future. Thus, to prevent this many businesses and organizations opt to obtain life insurance for a key employee. This provides a base of protection and security in case something should happen to the key employee of a company. 

The Importance of Key Employee Life Insurance

There are a number of reasons why life insurance for a key employee is very important. Often times there is one or two people who really make a company or business with it is. Whether it’s the person that designs all the clothes for a particular company or the person that is the creative force behind the company, this individual is what gives a company or business its brand and selling power. The sudden loss of this person could spell potential trouble for the business because of the huge impact that that key person made. Often times, it is very hard to replace a key employee of a company or business. Knowing this, many companies and businesses will obtain life insurance for a key employee in order to make sure that they have some type of financial support in case something should happen to this very special person. To be quite honest, not having life insurance for a key employee is like hoping that a key player will always be around even though this is not feasible. Thus, it really is in every business and organizations best interest to obtain life insurance for key employee

Benefits of Obtaining Key Employee Life Insurance

There are numerous benefits of obtaining life insurance for a key employee. One of the main benefits is protecting a business organization from the possibility of financial ruin in case a key employee should suddenly pass away. Key employees possess a significant amount of influence when a company on brand to the point that their absence could literally destroy a business’s future. Because of this, life insurance for key employee provides the company a payout upon the demise of the key employee. Furthermore, when a business has this form of insurance, it really does offer some assurance to creditors that even if the key employee passes away the company itself won’t end up failing miserably as the life insurance for key employee does provide benefits in the loss of income should the key employee pass away. Life insurance for key employee also protects investors which is also important because there have been incidents where a key employee has passed and this resulted in the plummeting of stock market prices for that particular business stock. Life insurance offers some assurance to stockholders that the business is still solid even though the key employee has passed on. Finally, life insurance for a key employee not only provides benefits to the business or corporation but also allows the key employee to receive a retirement benefit under the cash surrender value of the insurance policy. These are just some of the benefits that are associated with obtaining life insurance for a key employee.

Requirements for Obtaining and Maintaining Key Employee Life Insurance 

In order for a business or corporation to obtain and maintain key employee life insurance there are some requirements that must be met. For obtaining life insurance for a key employee, the company must prove that there is a particular individual within the company that is a significant force behind a business’s ability to be profitable. Also, businesses and corporations are required to provide some form of value for the key employee in order for the insurance company to provide a value for the work of an insurance policy. Also, many insurance companies will ask general questions such as how old the key employee , what physical state of the key employee and how strong the business is financially at the time of application. To maintain life insurance for the key employee, the business must be willing to pay the premium for this particular insurance on a monthly basis in a timely manner.

Anyone that has a company or business that has one particular individual that really is the lifeline should definitely consider life insurance for a key employee.

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