1. If I need a policy, what type should I buy?
We recommend term in almost all cases as it is 5 times cheaper than whole life. In other words a whole life premium that buys $100,000 coverage, could give you $500,000 of term life coverage.

2. How long a period should I cover?
Some people purchase life insurance for their entire lives while others purchase insurance for a specific term say 20 years to help pay off a mortgage. There is no right answer, each person's situation is different.

3. How much should I buy?
For such items as covering the amount owed on a mortgage, the answer is simple.
For general family coverage, the yardstick is approximately 5 to 7 times the family income. So if you earn $50,000 you need $250,000 to $350,000 for the needed period.
The general rule is don't overbuy, but don't under insure.

4. But what if I don't need all the original coverage in the coming years as dependants, such as my parents, have died?
Just write the insurance company and tell them by how much you want to reduce the amount of coverage and they'll lower the premium proportionally.

5. What about interest rates and inflation etc..?
Use our insurance calculator and work out some scenarios to come up with a figure that you are happy with.

6. When should I buy?
If you think that you need some life insurance you'll never be younger than today.

7. If whole life is 5 times more expensive than term, why are you even mentioning it?
At older ages and some joint cases the premiums may not differ that much if you compare a term with a whole life. In other words, you may pay a little more for the whole life, but get back a lot of it if you survive a certain period. Each case must be considered on its own merits. But you can never go wrong with a cheap term life policy.

8. My agent told me that whole life is for the whole of my life and the premiums will never increase?
True and the premiums on a term to age 100 policy will not increase either. And at age 100, most companies wave any further premium payments!
N.B. Term to age 115 is now available in some U.S. States.

9. So how do I shop to buy term insurance?
Go to our home page and complete all the details on the quote form. You'll receive ALL the quotes from the companies within 24 hours in your email box.

10. But which one should I choose?
We suggest the lowest priced "AA" company, such as Transamerica, Canada Life, Empire Life, Standard Life, etc; all the names you are familiar with. Indeed AIG, which is ranked "AAA," turns up as the cheapest company fairly frequently.

11. Is this the best way to proceed?
Yes, as you can shop in your own home at your own pace.

12. What is Joint Life?

First- to-Die In this type of policy, each party owns the policy and is insured for the same amount. When the first death occurs, the face amount of the policy is paid to the remaining owner.

Last-to-Die In this type of policy, each party owns the policy and is insured for the same amount. When the second death occurs, the face amount of the policy is paid to the beneficiaries.

13. What Is My Insurance Age?

At the top of the quote sheet, you will see your age, for example 40, written 40/40 or 40/41. This is due to the fact that some companies consider you a year older if you are within 6 months of your next birthday. But, don't worry, the computer takes all of this into consideration.

14. What Is A Paramedical Exam?

A paramedical exam consists of some questions about your medical history, measurements of your height and weight, blood pressure and pulse; a urine specimen is also collected.
Undressing is not required; a blood test may be required for higher amounts and older ages.
This exam will be done at a time and place of your choosing.

15. Which Canadian insurance companies do you deal with?

AIG Life Insurance Company of Canada
Great West Life Assurance Company
London Life Insurance Company
The Manufacturers Life Insurance Company
Sun Life Assurance Company of Canada
The Canada Life Assurance Company
Standard Life
Transamerica Life Canada
Maritime Life Assurance Company
Industrial alliance Life Insurance Company
Unity Life of Canada
Reliable Life Insurance Company
ACA Assurance
Assumption Mutual Life Insurance Co of Canada
AXA Insurance
Blue Cross Life Insurance Co of Canada
Co-operators Life Insurance Company
L'Entraide Assurance-Vie
L'Excellence Insurance Company
Finactive/Desjardins Finacial Security
Industrial Alliance Pacific Life (NWL)
Primerica Life Insurance Co of Canada
La Survivance, Compagnie Mutuelle
Union of Canada Life Insurance
Wawanesa Life Insurance Company

16. What does underwriting mean?
When the underwriter is assessing your application he or she looks at the medical and social history of you and your family. It is impossible to give a precise premium in advance but the following general guidelines will show you how the system works.

All companies use similar guidelines so that each person will very likely receive similar ratings by each company. Each company will likely agree whether you are in fair, good, better or the best health possible.

Accordingly the only real difference is in the premium which can fluctuate monthly as each company strives for its share of a particular age market. Thus you can be confident that the premium you pay today will be the lowest available from any AA company. These are some of the guidelines.

17. What are some Personal History questions will I be asked on the application?

- Personal history of cancer, diabetes, heart or cardiovascular disease or stroke (including TIA's).
- Medication for high blood pressure or evaluated cholesterol treated as controlled.
- Participation in hazardous sports, avocations or aviation (except as a commercial pilot) in the last 2 years and none anticipated in the future.

- Alcohol or drug abuse in the last 10 years.
- More than 3 moving violations in the last 5 years.
- Driving while impaired or reckless driving charge in the last 5 years.
- Ratable foreign residence or travel.
- Smoking history
- Health impairments such as asthma, depression etc.
- Age

18. What are some Family History questions will I be asked on the application?

- Family history of heart disease, bowel, breast or prostate cancer prior to the age of 65 in parents or siblings.
- Death at an early age.
- Number of incidents or occurrences per family

While this list is not exhaustive, you can see why only some 11% of all applicants can qualify for the very best rates. But each company is in business to sell insurance and the underwriter will give you the very best rate he or she possibly can.

19. What insurance companies do you recommend?

We prefer to deal only with companies that have a minimum AA rating. We are living in uncertain times and believe that the stronger the company, the better. Standard and Poor rank these companies "Very strong financial security. Highly safe."

Some Standard & Poor's Canadian Insurer Ratings as of January 30, 2003

AIG Life Insurance Company of Canada AAA

Great West Life Assurance Company AA+

London Life Insurance Company AA+

The Manufacturers Life Insurance Company AA+

Sun Life Assurance Company of Canada AA+

The Canada Life Assurance Company AA

Standard Life AA

Transamerica Life Canada AA

Maritime Life Assurance Company AA-