Inside A Million-Dollar Life Insurance Policy: What’s Really Covered And What’s Not

Your monthly premium could go up for a number of reasons, such as your age, the riskiness of your occupation, family health history or lifestyle habits, like using tobacco or consuming alcohol. Certain Life Insurance carriers may also increase rates if you have low or unstable income when applying for a Million Dollar Life Insurance Policy.

There are Life Insurance Policies with non-medical underwriting available, but these types of plans generally carry higher premiums and lower coverage approval. Most insurance companies will still require a detailed medical exam and a very full disclosure for complete dollar Life Insurance Policy coverage, like one for a million dollars.

Yes, the option for conversion is a standard for most term life policies. You can convert to Whole Life Insurance or Universal Life without another medical exam. This means that you can lock in lifetime protection or accumulate savings while keeping the health rating status you started out with.

Absolutely. For business owners, Million Dollar Life Insurance Policies are commonly used for income replacement, buy-sell agreements and loans. The Life Insurance company payout provides a cushion with which to continue your business and also protects your family’s financial future & other financial liabilities.

Yes. A good number of families apply a portion of their death benefit from a Million Dollar Policy to fund future tuition. As tuition continues to soar in Canada, this type of Life Insurance guarantees your child’s education is never disrupted, at least for financial reasons, should you not be around to carry it through.

Your income, age, health status and existing financial obligations will determine your eligibility. Many Life Insurance companies will consider your lifestyle, the risk associated with your occupation, and whether you can afford to pay the premiums. We assist clients in determining how to calculate what they can afford while still being realistic.

Although missing monthly premiums can lead to a grace period, typically 30 days, failure to make the payment on time could cause your Life Policy to lapse, and you would lose your Life Insurance coverage. A few whole life or Universal Life policies have sufficient cash values to keep the policy in force for a period of time.

Surprisingly, yes. Term Life Insurance rates get cheaper the younger you are. Many young professionals secure cheap Life Insurance Plans in Canada relatively early to safeguard future dependents, manage student debt and provide financial stability for the long term.

Definitely, a $1m life cover assists in paying off substantial debts such as car loans, credit card debts and mortgage pay-outs. It’s designed to alleviate financial pressure, enabling your family to retain assets and cover other costs without undue tension.

Yes. Most Life Insurance Policies offer optional riders such as critical illness, disability waiver of premium or children’s protection. These riders lapse, and you lose the cost of premiums if it is not formed by age 100 (and will be harder to form as insurers adjust pricing with changes in interest rates) – but they give added dollar Life Insurance protection against unforeseen health or income events.

It will be wise to answer, depending on the client’s purpose. Whole life yields cash value and life coverage, but it is costly. On the contrary, term insurance is cheaper than a permanent policy, but difficult to afford after the end of the term. We, financial advisors, rely on our clients’ scheduling and income to recommend the best policy.