Universal Life:
Your premiums are going to be invested in managed accounts, indexed accounts (including Strategic Asset Allocation accounts), long-term deposit accounts and an account with daily compounded interest. The Perspecta plan also has a Shelter Optimizer and Account Optimizer designed to maximize the investment component of the policy, ensuring the policy maintains its tax-exempt status. To boost the creation of value, the policy introduces so-called client bonus payments some time into the policy.
To enhance the policy, you can choose from plenty of optional riders, such as: 10 and 20-year renewable and convertible term riders, critical illness riders for both children and adults, accidental death benefit, the benefit of guaranteed insurability, term riders for children and a disability waiver benefit which relieves the client from paying premiums in case of a disability.
It is unfortunate, Standard Life insurance (which used to have industry-leading rates on their Universal Life policy) introduced a significant rate increase across the board in 2005. Through this rate increase, Standard Life lost the attractiveness it had over their competitors - especially for certain age groups. On the plus side, they are one of the handful insurance companies in Canada to allow preferred rates on both their Term and Universal Life policy.
For instance, a 45-year-old non-smoking male who will apply for $250,000 of Universal Life coverage is going to pay a minimum premium (i.e., the premium to keep the plan in force) of $211.95 monthly.
Term Life:
Standard Life’s term insurance plans are payable on an individual or joint first-to-die basis.
Those in good health and have a good family health record may become eligible for preferred rates. As a bonus, if you are really very healthy, you could qualify for a super preferred rate! There’s a small caveat though - face amounts for term plans begin at a minimum of $100,000. This fact can prove crucial for senior applicants on a constrained budget.
In LSM Insurance, we will help you choose the right policy for you from the portfolios of more than 13 insurance companies.