Question 1

When will I receive payment from a life insurance contract?

Accepted Answer

A contract covers payment of the insured amount up to its maturity date, for specified dates at periodic intervals, or for an unfortunate death, if it occurs earlier.

Question 2

What are the hazards that Life Insurance protects against?

Accepted Answer

There are two main hazards of life that specific life insurance policies protect against, namely the risks of dying prematurely and leaving a dependent family to care for themselves as well as the risks of living into old age without financial security.

Question 3

Which types of Life Insurance are available to me?

Accepted Answer

There are two main types of life insurance: Temporary Life Insurance for short-term needs and Permanent Life insurance for long-term needs.

Question 4

What are the benefits of purchasing a Life Insurance Policy?

Accepted Answer

There are many benefits to life insurance, including security for the future of your children, your financial security after retirement, and your family’s security in the event of an untimely death. You can also redesign your tax structure to benefit your family, and repay your mortgage with ease.

Question 5

Does Life Insurance offer any benefit for people who are single?

Accepted Answer

For single people, life insurance is necessary to cover any sort of financial obligations such as loans or outstanding credit card payments so that in the case of any untoward incident, their parents remain free from any financial burden.

Question 6

Do I really need Life Insurance if I am young and fit?

Accepted Answer

Buying insurance when you’re young and healthy usually means lower premiums and easier approval, and it locks in protection before your health or responsibilities change.

Question 7

Why should I purchase Life Insurance if I have no kids?

Accepted Answer

Purchasing life insurance will secure your spouse’s comfortable lifestyle even if you do not have children and will provide a stable financial future for your spouse in your absence. In view of the fact that your spouse will still have to pay for the loan’s monthly installments, life insurance will help her/him cope and move forward.

Question 8

Do I need to review my insurance policy every few years?

Accepted Answer

Yes. It’s smart to review coverage after major life events—like marriage, a new job, buying a home, or having children—or at least every few years to keep it aligned with your needs.

Question 9

Can I defer buying this policy for a few years?

Accepted Answer

Life insurance is a valuable financial tool that you need until you accumulate sufficient liquid assets and/or decrease your dependence. You cannot speculate on the time of your death. Your loved ones may not have other means of income if you die prematurely without insurance coverage or after your current assets have depleted. As such, you should never put this decision off and you should consider purchasing insurance as a priority.

Question 10

How will I deal with the costs of Life Insurance?

Accepted Answer

Compared to the valuable financial security that life insurance offers, the price holds relatively little significance, as it depends on how much coverage you need, how much you can save for it, and which insurance company you choose. Nowadays, online tools are available at your fingertips for you to shop, compare, save, and buy plans that offer you a guaranteed return on your investment.

Question 11

What is the difference between the policyholder (client), the insured and the beneficiary?

Accepted Answer

The policyholder owns the policy and pays the premiums, the insured is the person whose life is covered, and the beneficiary is the person or organization that receives the payout if the insured dies.

Question 12

Do you have to notify the insurer if your health changes while the insurance contract is in effect?

Accepted Answer

For life insurance, the answer is “no.” The insurer assesses your health only at the time the contract is issued.

Question 13

In the event of death, when is the insurance paid out?

Accepted Answer

Once the insurer receives the claim forms and proof of death and finishes any required review, the death benefit is typically paid in a lump sum to the beneficiaries.

Question 14

Is the insurance paid out if the insured is the victim of a homicide?

Accepted Answer

If the person convicted of the homicide is the beneficiary, they will lose the right to the benefit. If there are other beneficiaries, and they had nothing to do with the insured’s death, they will be entitled to the insurance amount.

Question 15

Is the insurance paid out if the insured commits suicide?

Accepted Answer

Many policies include a suicide exclusion for the first one or two years. If death occurs during that period, premiums may be refunded instead of the full benefit; after the exclusion period, normal benefits may apply. If you or someone you know is struggling, it’s important to reach out to a trusted adult or professional for help.

Question 16

If the insured goes missing, is the insurance paid out?

Accepted Answer

Insurers usually require legal proof of death, such as a death certificate or a court declaration, before paying a claim when someone is missing for a long time.

Question 17

What is the difference between a revocable beneficiary and an irrevocable beneficiary?

Accepted Answer

A revocable beneficiary can be changed by the policyholder at any time, while an irrevocable beneficiary generally must give written consent before they can be removed or their share changed.

Question 18

What is a rider in a life insurance policy?

Accepted Answer

A rider is an add-on to a standard policy that offers additional benefits or amends the terms of the policy. Common riders include additional insurance including term or critical illness, hospitalization, waiver or return of premium, supplemental income, and accidental death benefit. For any specific inquiries regarding riders, please book a meeting with us.

Question 19

How can I reduce the cost of life insurance?

Accepted Answer

Buying life insurance when you’re younger and healthier, opting for term life insurance over permanent policies, living a healthy lifestyle, and accurately comparing different policies and providers can help reduce costs.

Question 20

What happens if I miss a premium payment?

Accepted Answer

Policies typically come with a grace period, allowing you some time to pay the premium without losing coverage. If payment is not made within the grace period, the policy might lapse, and you could lose coverage.

Question 21

Can I change my life insurance policy?

Accepted Answer

Yes, in many cases, you can adjust your life insurance policy. Term life policies may offer conversion options to a permanent policy, while permanent policies might allow changes to your death benefit and premium payments. Be sure to consult your insurer for specifics.

Question 22

How do I choose a beneficiary?

Accepted Answer

A beneficiary is someone you designate to receive the death benefit from your policy. You can choose anyone, such as a family member, friend, trust, or charity. It’s important to consider who would be most impacted financially by your death and to update your beneficiary designation as life circumstances change.

Question 23

Can I have multiple life insurance policies?

Accepted Answer

Yes, you can have more than one life insurance policy. Having multiple policies can help you cater to different financial needs and goals, or simply add additional coverage as your situation changes over time.

Question 24

Are life insurance premiums tax-deductible?

Accepted Answer

In most cases, life insurance premiums are not tax-deductible. However, the death benefit paid to beneficiaries is generally income-tax-free.

Question 25

What information do I need to provide to apply for life insurance?

Accepted Answer

You’ll likely need to provide personal information, health history, and possibly undergo a medical exam.

Question 26

Can I get life insurance online?

Accepted Answer

Yes, many companies offer the option to apply and even be approved for life insurance online.

Question 27

What is the difference between a life insurance agent and a broker?

Accepted Answer

An agent works for a specific insurance company and sells their products, while a broker represents the client and can sell policies from multiple companies.

Question 28

Can a life insurance policy be contested?

Accepted Answer

Yes, policies can be contested for reasons such as fraud or misrepresentation within a certain period after issuance.

Question 29

What is whole life insurance?

Accepted Answer

Whole life insurance provides lifetime coverage, includes a death benefit, and accumulates cash value over time.

Question 30

Can I borrow against my life insurance policy?

Accepted Answer

Yes, if you have a cash value life insurance policy, you can borrow against the cash value.

Question 31

How much life insurance do I need?

Accepted Answer

This varies based on individual circumstances, including income, debts, lifestyle, and dependents. A common rule of thumb is 10-15 times your annual income, but specific needs may vary.

Question 32

What is life insurance?

Accepted Answer

Life insurance is a contract where an insurer pays a death benefit to beneficiaries upon the policyholder’s death. This helps loved ones cover expenses or replace lost income after the policyholder passes.

Question 33

Who should consider getting life insurance?

Accepted Answer

Life insurance is ideal for anyone with dependents or financial obligations, such as mortgages or debts, who wants to ensure loved ones are financially secure after they’re gone.

Question 34

How does cash value work in a permanent policy?

Accepted Answer

Cash value is a savings-like feature that grows within a permanent policy. It can be borrowed against, withdrawn, or left to accumulate for later use.

Question 35

What is universal life insurance, and how is it different?

Accepted Answer

Universal life is a type of permanent insurance offering flexible premiums and adjustable death benefits. It includes a cash value that can grow based on interest rates.

Question 36

What is the death benefit?

Accepted Answer

The death benefit is the sum of money paid to beneficiaries upon the insured’s death. This amount is typically tax-free and can be used for any financial need.

Question 37

How does accelerated underwriting work?

Accepted Answer

Accelerated underwriting uses data from health records and credit scores to speed up approval, often eliminating the need for a medical exam.

Question 38

Can I change my beneficiary later?

Accepted Answer

Yes, you can change your beneficiary at any time unless the policy states they are irrevocable. This gives you control over who receives the payout.

Question 39

Are life insurance payouts taxable?

Accepted Answer

Death benefits are generally tax-free. However, if the benefit becomes part of a taxable estate, estate taxes may apply.

Question 40

What is term conversion?

Accepted Answer

Term conversion allows you to change a term policy to a permanent one without new underwriting. This is helpful as you age or if your health declines.

Question 41

What is the cash surrender value?

Accepted Answer

Cash surrender value is the amount you’d receive if you cancel a permanent policy. It’s the cash value minus surrender fees, which vary by policy and company.

Question 42

What is a no-medical life insurance policy?

Accepted Answer

No-medical policies don’t require a medical exam and use data analysis for approval. They’re convenient but may have higher premiums due to limited health data.

Question 43

What is the difference between fixed and variable life insurance?

Accepted Answer

Fixed policies offer stable growth in cash value, while variable policies let you invest cash in sub-accounts, which can lead to higher gains or losses.

Question 44

Can I withdraw money from my life insurance policy?

Accepted Answer

Yes, many permanent policies allow withdrawals from cash value, though this may reduce the death benefit or incur fees, depending on the policy.

Question 45

What are living benefits?

Accepted Answer

Living benefits allow policyholders to access a portion of the death benefit if diagnosed with a terminal, chronic, or critical illness, providing financial relief during illness.

Question 46

What is a policy loan, and how does it work?

Accepted Answer

A policy loan lets you borrow against the cash value of a permanent policy, usually with low interest. Unpaid loans reduce the death benefit if not repaid.

Question 47

What’s the difference between group and individual life insurance?

Accepted Answer

Group life is provided by an employer and may be limited in coverage, while individual policies are bought personally and customized to your specific needs.

Question 48

What does underwriting involve?

Accepted Answer

Underwriting assesses risk factors like age, health, lifestyle, and occupation to determine eligibility, premium rates, and coverage limits.

Question 49

What is the contestability period?

Accepted Answer

The contestability period, usually the first two years of a policy, is when the insurer can investigate and deny a claim if it finds serious misstatements on the application.

Question 50

What is the incontestability clause?

Accepted Answer

It’s usually a two-year period during which insurers can review and deny claims for misstatements. After this period, they typically can’t contest a claim.

Question 51

What is accidental death and dismemberment (AD&D) coverage?

Accepted Answer

AD&D is an add-on that pays an additional benefit if the insured dies or suffers severe injury due to an accident, offering extra financial protection.

Question 52

What is the free look period?

Accepted Answer

The free look period (10-30 days) allows policyholders to review the policy after purchase and cancel it for a full refund if dissatisfied.

Question 53

How are life insurance premiums determined?

Accepted Answer

Premiums are based on factors like age, health, occupation, lifestyle, and the policy type and coverage amount. Riskier profiles may result in higher premiums.

Question 54

Can life insurance cover burial or funeral costs?

Accepted Answer

Yes, life insurance benefits can be used for any purpose, including funeral costs, helping families manage these expenses without additional financial strain.

Question 55

Is super-visa insurance a mandatory requirement of Super Visa?

Accepted Answer

Yes.

Question 56

Who can purchase Super Visa Insurance?

Accepted Answer

Super Visa Insurance can be bought by Canadian citizens or permanent residents to offer protection to parents or grandparents visiting them on a Super Visa.

Question 57

What factors should I take into consideration before applying for the Super Visa?

Accepted Answer

You should review the income requirement, invitation letter, medical exam needs, and make sure your insurance policy meets the government rules for coverage amount, start date, and refund options.

Question 58

What is the age limit to apply for a Super Visa?

Accepted Answer

There are no age restrictions to apply for a Super Visa. You need to be a parent or grandparent of a Canadian citizen or permanent resident.

Question 59

What are the requirements to be covered for a 1-year, $100,000 medical insurance policy?

Accepted Answer

As per the Government of Canada, you are eligible to purchase this insurance if you are a visitor to Canada who is not covered under a provincial or territorial government plan.

Question 60

What are the payment options for a Super Visa Insurance?

Accepted Answer

The policy can be purchased through credit card, cash or cheque.

Question 61

Can I purchase Super Visa Insurance for 2 Years?

Accepted Answer

Most companies do not allow you to buy insurance for more than one year. However, in some cases , some companies may offer 18 months or 2 year plans.

Question 62

What's the difference between insurance for visitors and Super Visa insurance?

Accepted Answer

Visitor insurance is usually short-term and flexible. Super Visa insurance must meet stricter rules: higher minimum coverage, longer duration, and proof of payment to support the visa application.

Question 63

What if I travel for one or two months? Do I still need to get Super Visa Insurance?

Accepted Answer

If you are a Super Visa holder or applicant, then it is compulsory to purchase insurance for a minimum of 365 days with a coverage of $100,000 or more. Later you can get a partial refund with proof that you returned early with no claim filed, if you visited for less than a year.

Question 64

If the visa is denied, will I get a full refund of the premium amount?

Accepted Answer

Yes, the insurance companies reimburse the full premium amount upon receipt of the visa denial document.

Frequently Asked Questions