Insurance World

Many people-particularly those with children-recognize that life insurance can help protect their family financially in the event of their death. Still, some delay any action due to their confusion regarding the amount of insurance needed or the types of coverage available.

Help is available from the National Association of Insurance Commissioners (NAIC), a voluntary organization of state insurance regulatory officials, which has assembled useful information about insurance on a consumer education Web site called Insure U (www.InsureUonline.org).

Understand The Basics

According to the NAIC, there are three key basics of life insurance:

1. Start by determining how many people are financially dependent on you, what their major expenses could be and whether you’re likely to leave them with substantial debts or estate taxes.

2. Evaluate the two main types of life insurance: term, which pays a death benefit if you die within a specified time period; and permanent life, which provides coverage for your entire life and typically includes both a death benefit and the ability to build up cash value. In general, term insurance is much less expensive than permanent life insurance.

3. Understand the major factors that affect life premiums. Some are uncontrollable, such as the age at which you purchase a policy or whether you have a serious pre-existing medical problem. Others are directly dependent on behavior, like poor health habits (e.g., smoking or excessive drinking), your driving record or engaging in dangerous hobbies.

Life Insurance Tips

By Life Stage

The NAIC’s Insure U Web site provides consumers with focused tips based on their needs for different life stages. For example:

• Young singles who want to be sure they can get life insurance later in their lives when they may develop health problems should consider inexpensive term life insurance that is guaranteed to be renewable.

• Young families should consider purchasing life insurance for both parents, even for a nonworking spouse, to help pay for child care and other domestic services.

• Established families should factor in the probable costs of their children’s college education when determining how much life insurance they may need.

• Empty nesters/seniors should evaluate the pros and cons of reducing their life insurance coverage based on whether their spouse is alive, their home is paid off or their children and/or grandchildren are financially independent.

All consumers should review their life insurance policy annually and update it to reflect major changes in their lives-such as marriage, the birth of a child, divorce or death of a spouse.

Individual Products and services

It is sometimes said by poets that life is but a span, and if something bad happened to you, yours family would have to go through a heavy time; the welfare of your family would be deteriorated.
Life insurance companies offer you various insurance programs, which will provide financial security of your family in case of death, disability in your future. They help you keep your head above water, as well as support your most optimal plans.

Most life insurance companies are reputable because of the strict regulations in Canada and throughout the world.

The best way to get a good selection of life insurance most fitted to your needs in this day is to use the Internet.

It could be quickly found out that Wawanesa Life is among best rating life insurance companies.

Wawanesa Life is a subsidiary company of the Wawanesa Mutual Insurance Co.

Wawanesa has a rich history dating back to 1896, when it was founded in the Village of Wawanesa, Manitoba.
Today executive offices are located in Winnipeg, Manitoba, Canada.

Wawanesa Mutual operates in all areas of Canada as well as in the states of California and Oregon in U.S.A.

Wawanesa was awarded an A+ (Superior) Rating for its financial strength from A.M. Best Co. the world’s oldest and most authoritative insurance rating and information source.

Some of Wawanesa traits are the out standing claims service and underwriting service, consistent range of quality products and among them:

Individual Products and Services.

It should be noted that a vast array of life insurance policy types available consists of one of two basic forms: Permanent insurance and Term insurance.

As the names imply, permanent insurance is permanent for life and term insurance is temporary. Examples of permanent needs are funeral expenses, survivors’ income, taxes at death on capital gains and charitable bequests. Examples of temporary needs are mortgages, education and business loans.

Permanent Products

Types of permanent insurance plan:

Universal Life is a permanent insurance plan providing for separation of the insurance and savings components of the policy. All premiums are generally deposited to interest bearing investment accounts. From these accounts it is deducted Cost of Insurance (COI) charges and administration fees. Policyholders could direct premiums to different account choices, such as a Daily Interest Account, a Canadian Equity Index-Linked Account, a U.S. Equity Index-Linked Account, an International Equity Index Account and a Canadian Bond Index Account. It may be selected two COI charge methods by the policyholder. The charge may be level for policy’s life, or may be level (at a lower amount) up to age 65 with a following increase to a new higher amount for policy’s remainder.
The tax-free death benefit will consist of the death benefit provided by the insurance coverages selected plus the value of the different investment accounts. The Account Value, less a surrender charge in the early years, will be available to the policyholder upon surrender before the death of the life insured;

Term to Age 100 – this plan provides a level amount of permanent life insurance, to ago 100 of the life insured, at which time the face amount of insurance is paid.
Premiums are level and payable to age 100. This plan is also available on a joint-last to die basis;

Fifteen Pay Term to Age 100 plan provides a level amount of permanent life insurance to age 100 of the life insured, at which time the face amount of insurance is paid. All premiums are guaranteed, level and payable for 15 years only. Commencing in the 10 th year.
A guaranteed cash value will develop to be available to the policyholder upon surrender before the death of the life insured;

Twenty Pay Term to Age 100 plan provides a level amount of permanent life insurance to age 100 of the life insured, at which time the face amount of insurance is paid. All premiums are level and payable for 20 years only.
Commencing in the 10 th year a guaranteed cash value will develop to be available to the policyholder upon surrender before the death of the life insured;

Final Expense Plan is designed for individuals age 45 to 75. This permanent plan is a guaranteed issue with just 5 qualifying questions.
Premiums are level and payable for 20 years only. The death benefit in the first 2 years will be the return of paid premium plus 10 % interest to the death date. When death occurs it is paid the full protection. The death benefit amount is paid to the policyowner if living after the later of 20 years, or age 85.

Types of Temporary Products:

Life Style Term – these plans consist of 10 years or 20 years Renewable and Convertible Term Insurance. The insured sum is level and premiums are guaranteed.
Life Style Term can be renewed until age 80 of the life insured, at which time the insurance terminates. These plans are also available on a joint – first to die basis;

Preferred Underwriting of Life Style Term
These plans allow applicant to be grouped into a greater variety of lifestyle categories resulting in a more appropriate premium being charged. In the past, healthier applicants subsidized the insurance costs of less healthy ones. Life Style Term rewards better risks with lower premiums. Three nonsmoker classes and two smoker classes are included in Preferred Underwriting classes available for Life Style Term;

Lifestyle Adjustment Plan (critical illness protection) – this plan is designed to provide funds helping you care financially for yourself and your family maintaining the same quality of life after surviving a critical illness.
The plan provides a tax-free lump sum living benefit to the plan owner on the occurrence of the first of the covered illnesses of the insured, provided the insured survives the waiting period following the critical illness onset.
The waiting period is 30 days from diagnosis, except for Loss of Speech (6 months) and Paralysis (90 days). No living benefit is payable if cancer is diagnosed within 90 days of issue.
Three types of Life style Adjustment plans are available: 10 year Renewable to Age 75, Level to Age 75 and Level to age with Return of Premium.
Wawanesa Life has a plan to meet any your insurance and financial needs which can be tailored fitting your needs.
For more information, please, contact an Insurance Advisor from Wawanesa Life.