Some of the important things that actuaries look at when pricing life insurance are things we wouldn’t expect – like expected future costs and lapse assumptions. Making the assumption of lower future costs will have a noticeable effect on pricing. Assuming that a large number of policies will lapse instead of having to pay a death benefit can effect premiums as well. If you assume 2 people in a 1000 are going to own life insurance when they die, that’s one premium. But if you assume that only one person in 1000 is going to own the policy when they die because the other person cancelled before they died – well you can see that paying one less large death benefit can have a huge impact on the premiums.

However some life insurance companies have large case departments where they’re able to reduce commission and as a result premium, on a case by case basis. Nobody’s going to do that for you on a $200 a month premium, but if sufficiently large some agents will take a commission cut to get competitive pricing.

Here is your laugh for today “Veronica” who is related to “Terry” said almost the same comments within a few hours of each other on another site, http://www.milliondollarjourney.com

With out going into details term is a tool and is great for some people but is many cases like a family business or cottage term is just not going to help.

I came across Blue Cross mortgage disability plan. (All Blue Cross Member Plans in Canada are operated on a not-for-profit basis).

As you know disability insurance is very important. For people who are self employed this may help because of their low income even though they have a large mortgage. I will try to get you some info on this and maybe a powerpoint if you think it may help.

regards,

Brian

Also, Brian – if you would like to make a guest post on disability insurance in your own words, please do feel free to send me an article – always looking for good content!

http://www.wheredoesallmymoneygo.com/what-is-disability-insurance/

http://www.wheredoesallmymoneygo.com/why-disability-insurance-is-the-most-important-insurance-to-have/

You should also be talking about disability insurance. This is a topic many insurance agents don’t talk about yet there is a huge demand and need. When compared to term insurance (for disabilities over 90 days) in many cases one has a 8x better chance of a disability claim than death! Since this topic does not get raised by financial planners…investments are easier to talk about!

This explains why many policies are sold over the internet, instead of face to face across Canada. If you want some information your readers could use feel free to drop me a line.

regards,

Brian Poncelet, CFP