Life Insurance FAQs

What is Life Insurance?

Life Insurance is a type of insurance that pays a Tax-Free Benefit to a chosen beneficiary upon the death of an insured individual.

What are the different types of Life Insurance?

Although there are many variations of life insurance available today, there are really two types of life insurance. The first type is term (Temporary), and the second is permanent (Lifetime).

Term Insurance: is designed to provide life insurance protection for a specific length of time, usually 5, 10, or 20 years.

Permanent Insurance: is designed to provide life protection for as long as you live. Permanent Life Insurance comes in many forms, Universal Life and Term are the most common options. This insurance provides insurance protection for your entire life at a level cost. Some permanent insurance polices can offer accelerated payment options so as to avoid paying premiums forever, while still providing the lifetime insurance protection.

Which type is the best?

It really depends on your individual needs. The biggest factors are the amount of coverage you require and for how long you will need it. The best way to determine this is through a consultation with your Morgex Insurance Life Insurance Specialist.

I have Mortgage Insurance from the bank, isn't that good enough?

While the mortgage insurance from the bank is a good start, it certainly is not a very solid insurance option. This type of insurance only pays off the mortgage balance upon death, and decreases in value every month, just like your mortgage balance. It is important to understand that this insurance can be substituted with your own individual term policy with a fixed price and fixed payout for the entire term of the mortgage. This may be a much better option.

What about my benefits package at work?

While most employee benefits packages include life insurance, the coverage is usually very low (usually 1 or 2 times your annual earnings). This may not provide adequate coverage and your plan may be changed at any time. The insurance protection ends when you change employers with no insurance protection, and no other options.

Do I need to qualify medically for Life Insurance?

Yes, all life insurance companies require full medical disclosure at the time of application. Some will require urine, saliva or blood samples to test, while others will only require a paper application. It really depends on the amount of insurance protection needed.

I have a medical condition, does this mean I would be declined?

Not necessarily, most insurance companies have the flexibility to accept clients without perfect health, although they sometimes require additional premiums to accept that risk. We have been able to insure clients with multiple sclerosis, diabetes (even insulin dependent), high blood pressure, and many others.

How much insurance do I need?

It really depends on your specific situation. The best way to determine this is through a consultation with a licensed Life Insurance Agent.

How do I know what type of insurance is best for me?

The best way to determine this is to consult with an insurance agent. Our agents will meet with you to help you determine your needs, based on your own personal situation.

What happens if the insurance company goes bankrupt?

All of the insurance companies we deal with are protected against insolvency by Compcorp, an agency that guarantees at least a portion of each and every life insurance contract issued in Canada.

Can I cancel my policy at a later date?

Yes, you can always cancel your insurance policy if you decide you no longer need the protection.

I heard about some one using their life insurance to supplement their retirement, can this be done?

Yes,it is actually quite common. Many of our life insurance products have the cash values that can be accessed to supplement your retirement. Some people like this option since whatever is left in the policy is distributed tax-free upon death, unlike any other retirement funding options. This option is not for everybody, but for the right person it definitely has some advantages.

How do I get started?

The best way to start this process is to meet with a licensed life insurance agent to discuss your needs. You should discuss your wants and needs with your family beforehand, and make sure you are shown all of the options before you make this important decision.

If you have any questions please contact your personal insurance specialist.

Morgex Insurance
(780) 732-6694
1-800-272-8848 Ext. #6694
mailto:wealthmanagement@morgex.com