Life Insurance

What does life insurance have to do with estate planning? A lot, actually! 

While estate planning is an essential process that allows individuals to better preserve, manage, and distribute assets both during and after their lifetime, life insurance is the tool that protects and safeguards wealth for future generations.

If you want to learn more about the role that life insurance policies can play in estate planning, especially here in Canada, you have come to the right place. 

We at McIver Insurance fully understand that estate planning can be emotional and overwhelming at times. That is why we have compiled this short guide to help you understand the importance of estate planning and how life insurance can play a major role in its execution.  

What Is Estate Planning? – An Overview For Canadians

Estate planning is a process that allows individuals to lay out an actionable plan that helps them manage, control, and distribute assets and liabilities during their lifetime and after they die. 

Upon death, a well-thought-out estate plan can ensure the smooth distribution and transfer of assets to loved ones while preserving the maximum amount of wealth possible. 

Estate planning is also intended for everyone, not just wealthy individuals. Despite what many think, almost all Canadians have an estate. This is because the term ‘estate’ includes everything one owns whether that be vehicles, real estate, their home, investments, bank accounts, life insurance policies, or even personal possessions. 

As such, to make sure assets and other valuable personal possessions are passed down to the people or organizations you most care about and as per your long-term goals and objectives, you need careful estate planning. Without a strategic estate plan in place, the distribution of your assets will have to be settled in accordance with the law, which can lead to family disputes and also result in higher taxes and legal fees. 

What Is Life Insurance? What Are Its Different Types?

Life insurance, on the other hand, is a financial product that is a legally binding contract between a life insurance company and a policy owner. 

A life insurance policy guarantees that the insured will be paid out a sum of money by the insurer upon their death, in return for the premiums they have paid out during their lifetime. 

Depending on your insurance provider you can choose from a variety of different types of life insurance with the two most common types being term life insurance and whole life insurance (permanent life insurance). 

The Role Of Life Insurance In Estate Planning

Life insurance plays a major role in estate planning as it helps compensate your dependents, loved ones, and/or beneficiaries financially in the event of your death. 

The death benefit paid out by a life insurance policy can be used to cover funeral costs, pay off debts, cover estate taxes, and pay for monthly expenses. 

Moreover, life insurance payouts aren’t tax deductible and the payouts are often granted immediately upon submitting the claim; without any deductions such as legal fees and other expenses. 

By adding life insurance to your estate plan you can have the peace of mind knowing that your loved ones will be taken care of financially even after your death. 

4 Ways Life Insurance Is Used In Estate Planning

While there are many benefits of life insurance, when it comes to estate planning, life insurance is often used in conjunction with a will or a trust in the following ways:

To Ensure Proceeds Are Tax-Free

The distribution, transfer, and selling of assets upon your death can be a complicated affair depending on the nature of assets and total net worth. Liquidity can become a concern for family members who may need cash urgently to meet financial obligations. 

This is where life insurance becomes critical, as unlike real estate, stocks, FDs, and other investments, that come with maintenance expenses, legal complications, stamp duties, and capital gains tax, a death benefits payout is tax-free and paid out promptly without any deductions. The liquidity of a life insurance policy is a major advantage and that’s why life insurance is often a fundamental component of estate planning. 

To Preserve Family Assets

Canadians who have family-owned and operated businesses can have a life insurance policy that allows family members to “cash out” their share of the business with other family members if they choose to do so. This helps keep the business within the family while also preserving family peace which is good for the viability and continuity of the business.

To Assist With Estate Equalization

Selling estate assets and distributing the money released to loved ones can often take a considerable amount of time depending on the size of the estate and the nature of the assets within it. In the event of one’s untimely demise, loved ones might need money urgently to cover funeral costs and pay off any business debt. 

To ensure your family members aren’t put under immediate financial burden, or are forced to liquidate assets or use their own money to pay for expenses, a life insurance policy is used as a means to provide immediate liquidity.

To Disregard The Need For A Probate 

Most Canadians use life insurance as a way to pass down money immediately to designated beneficiaries upon death; without having to go through the complications of a probate process. 

Not only is the death benefit paid out in relatively quick time, but it is also distributed tax-free and can’t be touched by any potential debts or creditors!

Consult With Trusted Life Insurance Experts – McIver Insurance

While there is no denying that life insurance is a critical component of estate planning, it is always vital to consult with an estate planning attorney, a tax advisor, and a life insurance broker to consolidate the best estate plan possible for your family’s needs and current financial situation.

We at McIver Insurance specialize in all types of life insurance policies and work diligently with all our clients to understand their specific needs and financial objectives. If you would like to learn more about how life insurance can assist with estate planning please give us a call at 1-902-220-3279 or email Pat McIver, at [email protected]

Is there a perfect age for life insurance? Does having perfect health mean you get the lowest premiums? Is it worth getting life insurance in your old age? 

These are but a few questions that many Canadians have in mind when considering investing in a life insurance policy. The impact of age, health, and various other factors can all impact how much you pay in premiums which can make things confusing.

Luckily, to get all the answers you seek you have come to the right place! So, without further ado, let’s discuss the impact of age and health on life insurance premiums in Canada.

How Does Age Impact Life Insurance Premiums?

An individual’s age can have a significant impact on the type of life insurance policies you can get and the amount of premium you will have to pay. 

Many experts believe that the best time to buy life insurance is when you think you least need it. This is because when you are young and healthy the risk of you dying is significantly lower. The lower the perceived risk, the lower the premiums are likely to be.

However, that doesn’t mean older people shouldn’t consider life insurance. As the population of seniors increases in Canada, the options for life insurance policies have also increased. Individuals over the age of 60+ still have many options available for life insurance and should consider investing in a life insurance plan even if it means having to pay higher premiums.  

For those over the age of 75, however, life insurance isn’t a viable choice. Policies are hard to come by and the premiums tend to be astronomically high.

What Is The Ideal Age To Invest In Life Insurance?

As such, many consider the ideal age to invest in a 20-year term life insurance policy to be in the late twenties or early thirties. At this age, you will likely have dependents, a steady job, and be in sound health, all of which will mean much lower premiums.  

How Does Health Impact Life Insurance Premiums?

As you would imagine, a person’s health can play a significant role in determining how much premiums they will need to pay for life insurance. 

As such, most insurance providers will require a health assessment during their application process. Some providers may require a medical exam conducted by a healthcare professional as part of their application process while others might ask for medical records and family history. 

If you are in perfect health you will likely get a much lower monthly or annual premium quotation. However, if you have certain health conditions your premiums are likely going to be a lot higher.

So, does that mean unhealthy people can’t get life insurance? No, even if your health condition doesn’t make you eligible for standard life insurance you have other options available. 

In Canada, certain insurance providers offer Guaranteed Acceptance Life Insurance that doesn’t require an individual to answer any health questions or have a medical exam. Of course, the premiums for these types of insurance policies can be quite high, so it is always advisable to consult with a licensed and trusted life insurance advisor to ensure this type of policy is right for you! 

Other Factors That Impact Life Insurance Premiums

Apart from your age and health, life insurance premiums can be impacted by other factors as well. These include:

Type of Policy & Coverage Amount

There are various types of life insurance policies. Depending on the type of policy you want, premiums can vary significantly. 

The two most common types of life insurance policies are term life insurance and whole life insurance.

Term life insurance policies are generally offered in 10 or 20-year terms. The premium for 10-year coverage will be lower than a 20-year term.

Whole life insurance coverage tends to have the highest premiums as it offers coverage for the lifetime of the policyholder. 

The coverage amount for your policy can also impact premiums. A $100,000 policy will have a lower premium than a $200,000 policy as the insurer is taking a higher risk.

Gender

Males tend to have higher premiums than females, as statistically, males on average have a shorter life span than females and as such are associated with higher risk.

Smokers & Vapers

As a rule of thumb, if you are a smoker or someone who vapes your premiums are likely to more than double. Any form of smoking that involves the use of nicotine is considered ‘smoking’ and will automatically increase the premiums you will be liable to pay. 

In order to be considered a non-smoker one mustn’t have smoked any substance with nicotine at least in the past 12 months. 

Lifestyle & Occupation

If you work dangerous jobs or work in an industry that is prone to occupational hazards, you might find yourself having to pay higher than average premiums. 

Your lifestyle choices can also dictate the amount of premium you have to pay. If you have hobbies such as deep sea diving, skydiving, racing, etc. you will have to pay more in premiums to offset the risks.

Choosing The Right Life Insurance Coverage That Works For You!

There are many intricacies to a life insurance policy. Without the proper knowledge and legal know-how you can easily fall into the trap of paying more in premiums or opting for a coverage amount that is either too low or too high for your financial situation.

As such, when it comes to choosing a life insurance policy, it pays to consult with the experts. We at McIver Insurance Inc. specialize in life insurance and group benefit plans for individuals and small businesses. 

As Nova Scotia’s most trusted life insurance broker, we treat every case individually, helping our clients find the best insurance policy to suit their unique needs and financial objectives.

If you are ready to take the necessary steps to secure the financial future of your loved ones call us today for a free quote at 1-902-220-3279 or email [email protected]

Life insurance is an essential financial tool that pays out a sum of money or death benefit to your beneficiaries to help cover their expenses and compensate for lost future income. Over 70% of Canadians have some type of life insurance policy to help provide peace of mind and financial security for loved ones. 

It can take anywhere from 10 to 60 days to receive a life insurance payout after a claim has been submitted. The claim processing time varies depending on how and when the insured died and whether the right documentation has been submitted. If everything checks out a claim can often be issued in under two weeks, however, if there are complications the claim process can take two months or even more.

So, what can you do to ensure there are no delays or issues when your beneficiaries claim life insurance after your passing? To get the answer to this question and a lot more, read on!

Understanding Life Insurance Claims

What are life insurance claims? In layman’s terms, a life insurance claim is a process whereby a designated beneficiary on a life insurance policy formally requests an insurance provider to pay out the benefits attributed to them as stated in the policy.

There is no time period associated with filing a claim. A beneficiary can file for a claim even years after the insured’s death. As long as the insured dies while the policy is active the beneficiary will receive the payout regardless of when they apply for it. However, it goes without saying that the sooner you file for a claim the sooner you will receive the benefit payout. 

How To Start A Life Insurance Claim Process?

Claiming a life insurance benefit is a fairly straightforward process in Canada. Here are the steps involved when filing for a life insurance claim:

1. Provide proof that the insured is deceased. This is usually presented in the form of a death certificate that identifies the exact time, date, location, and cause of death. In certain cases, more proof may be warranted in which case you may also have to provide one additional document for proof. This can include an obituary, funeral home bill, funeral director’s statement, coroner’s report, or police or medical records.
2. Fill out the claim forms and attach the original life insurance policy document if you have it on hand. When filling out the forms also make sure the information you provide is accurate and relevant. This can help speed up the claim process. (If you can’t find the original document you can request the insurance provider to send you a digital copy instead)
3. Choose how you would like the death benefits to be paid out. You can either choose to receive a lump-sum payment or opt to be paid out in the form of an annuity. In the case of an annuity, beneficiaries are paid annual payments for a predetermined number of years or life depending on the terms of the policy and the insurance provider.
4. Submit all documentation and claim forms. Wait for the insurance provider to review and cross-check the information and fact-check the claim request. This can take anywhere from two weeks to two months.
5. Once the claim is approved the beneficiary will receive the payout according to the payment method they had specified. However, if the claim is denied the beneficiary can write an appeal letter, speak directly with a designated representative, or consider legal recourse if they feel the denial was unjust or unwarranted. 

How Long Does The Life Insurance Claim Process Take?

The life insurance claim process can take several weeks. It can take a few days for a beneficiary to fill out the necessary claim forms and gather the relevant documentation needed for submission. After submission, the insurance provider can take a further two weeks or more to cross-reference everything and issue the payout. 

In most cases then, it can take a minimum of three weeks to a month for you to be paid out and this is why it is essential to initiate claim proceedings as soon as possible. 

What Factors Can Delay The Claims Process?

Several factors can delay the claim process which can make things quite stressful and financially tasking on beneficiaries. Here are some of the most common reasons for delays that can be easily avoided:

• The submission of incorrect or vague information and wrong documentation is the most common reason for delays. This can be easily avoided by double-checking all the paperwork and ensuring that the directions provided by the insurance company are followed to the tee.
• Any missing paperwork can also cause delays. If even one form or document is missing it can cause delays in the claim process. 
• If the death has occurred during the contestability period there is likely going to be a delay in the beneficiary receiving a payout. The contestability period is a two-year window from the date of issue of a life insurance policy whereby an insurance provider can legally withhold the payout to a beneficiary until it has done its due diligence confirming there is no form of misrepresentation or insurance fraud involved. 
• Another reason why an insurance claim can be delayed is based on how the insured has died. If the insured was murdered, or died while engaged in any form of illegal activity the insurance provider can withhold the death benefit payment until a thorough investigation is conducted.

What If A Claim Is Denied?

If a claim is denied, the insurance provider has to legally provide a written explanation underlying the reasons behind the denial. If the beneficiary feels that the reasons aren’t valid, unjustified, and unwarranted they can appeal the decision and even take the insurance provider to court.  

The Importance Of Consulting With Insurance Experts!

When filing for a life insurance claim it is always best to consult with an insurance agent, brokerage company, or the insurance provider themselves as they can assist you in ensuring that you follow the steps required to receive your insurance benefit without any delays or setbacks.

At McIver Insurance we specialize in all types of life insurance policies and are the most trusted insurance brokerage firm in the Atlantic Provinces. To learn more about life insurance or its claim process feel free to call us now at 1-902-220-3279 or email [email protected]

As we go through the different stages of life, from infancy to adulthood, our wants and needs change and so do our financial needs and responsibilities. During our transition to adulthood, we tend to only think about ourselves and the present whereas as we age our goals and thoughts change. What becomes more valuable is our legacy and the thought of keeping our family and loved ones safe and financially secure even after our passing.

This is why life insurance is such a widely used tool for both financial and retirement planning, not just in Canada but around the world. A comprehensive life insurance policy can help protect individuals and loved ones if the unexpected occurs and give people peace of mind and a sense of security.

However, not all life insurance policies are the same. So, to find the right policy for you, in this guide, we will take a look at what life events can affect your insurance needs and the different types of policies available to ensure those needs are met!

What Are Some Major Life Events That Can Impact Your Insurance Needs?

Many major life events can impact your insurance needs both in the short and long term. As you transition from one stage of life to another your insurance needs may require reevaluating, especially in the cases of the following:

1. Getting Married

Getting married begins for many the next chapter of life. It is a bond of love and a promise to build a future as partners. As such, once a person gets married both partners must have a life insurance policy so that in case something unexpected were to happen to either one of them the other isn’t financially burdened with outstanding debt, burial/funeral costs, and other major expenses. 

2. Having A Child

Having a child is a blessing and a responsibility as you must protect and financially provide for them. As such, as soon as you have a child you should seek out a life insurance policy, whether that be a term life insurance policy or a whole life insurance policy to help protect your children financially should you or your spouse pass away.

3. Buying An Asset (Vehicle, Home, Etc.)

When you buy your first home or even a rental property, it is always important to consider mortgage insurance, especially if you don’t have enough money to pay the 20% down payment on a new home. Having mortgage insurance can increase the chances of you getting approved for a mortgage as this type of policy helps minimize the risk for lenders.

In the case of buying a vehicle, you will also need vehicle insurance whether that be third-party insurance or full vehicle coverage as per Canadian law. 

4. Starting A Business

In a rapidly changing world, many consider entrepreneurship the key to accumulating wealth and being successful. However, starting your own business isn’t an easy ordeal as it requires a lot of hard work and plenty of sacrifice. It also means you are no longer going to be covered by your previous employer’s life insurance or group insurance policy and will have to take responsibility for your own insurance needs. 

This would require purchasing life insurance, health insurance, liability insurance, disability insurance, and more for comprehensive coverage which can be quite challenging. The best way to figure out a coverage policy when starting your own business is to consult with an insurance broker or expert who can help you navigate through the various options and find you a policy best suited to your new insurance needs.

5. Changing Jobs

When transitioning from one job to another, or considering a job offer, it is important to look at not just how much more you will be getting paid in terms of salary or hourly pay but also the perks and benefits that your current job offers versus your new job. 

Some Canadian companies offer comprehensive life insurance policies that cover health, life, vision, dental, and disability insurance while others may only offer health and life insurance. You must ask about what your policy entails and if there are gaps in the coverage how much it would cost to fill those gaps. 

6. Retiring

Upon retiring many people think or assume that they no longer need life insurance. However, if you still have outstanding debt, plan on continuing to work, or have a spouse or child that is disabled it is vital that you consider future coverage.

7. Divorce

Divorce is hardly ever smooth. In most cases, it is messy and emotionally and physically taxing. You are not just splitting up assets and belongings but also splitting up your lives and the lives of your loved ones. It is no surprise then that in the unfortunate event of a divorce, your insurance needs will also drastically change and you will need to revise or seek out new insurance policies to protect your children and yourself.

What Are The Different Types of Life Insurance Policies?

Based on the life events you are currently passing through here are the different types of life insurance policies that can cater to your changing insurance needs.

Term Life Insurance

The least expensive of all life insurance products, term life insurance is designed to offer more flexibility and can be purchased for a 10, 20, or 30-year term. 

Permanent Life Insurance

This type of policy lasts the entire lifetime of an insured person for as long as the premium is paid. It has a higher cost but offers lifetime coverage, flexible payments, and the opportunity to build cash value.

Variable & Universal Life Insurance

Permanent life insurance can be further broken down into variable vs. universal or whole life insurance. The main difference between the two policies is that whole life insurance offers a guaranteed death benefit but slower cash value growth whereas a variable life insurance policy offers flexible premiums, flexible death benefits, and greater potential for cash value growth. 

The Best Life Insurance Policies For Nova Scotians – McIver Insurance!

With the right type of life insurance policy and provider, you can ensure that your loved ones are well taken care of if anything unfortunate were to happen to you, giving you peace of mind and allowing you to live more fearlessly. 

If certain life events have changed your insurance needs, consult with McIver Insurance! When it comes to life insurance companies in Halifax no one can beat our level of professionalism, experience, and pedigree.  

Call now at 1-902-220-3279 or email [email protected].