Life Insurance policy and rescission rights

Life Insurance policy and rescission rights

Consumers usually have the right to examine or test a product before they make a major purchase. Small purchases usually come with a satisfaction guaranteed or your money refunded policy.

However, insurance is different from most tangible consumer products. Even if an insurance applicant was provided with a sample policy to read before he or she applied for coverage, there is not guarantee that after underwriting, the insurer would offer a policy with the same rate class, premium structure of face amount as the sample.

So, most insurance companies issue new policies with a rescission period from 10 to 30 days. During the rescission period, the policy owner can return the policy for any reason, for a full refund. This gives the consumer lots of time to examine the policy, check the premium and coverage provisions, and decide if it is the right policy for them.

We at are experts in explaining the the various types of life insurance that could protect the entire family. Please feel free to contact us at or at 1 416 509 2540. Please visit us for a no obligation quote or advice.

Life Insurance is a wealth maximising tool

A life insurance policy serves the purpose of replacing the income in case of an untimely death of the family breadwinner. In case of a family with two or three small kids, a mortgage and some additional debt, a life insurance policy on the parents would be extremely important. If one of the parents were to die, the surviving spouse would find it difficult to take care of the responsibilities and maintain a standard of living.


Cash Back or Money Back Life Insurance

A very standard question from purchasers of life insurance is, ” I have paid into the policy for these many years…What will I get back in case I am still alive and healthy? “   A very pertinent question because we all want to know where our money is going and will there be any return on our money during our life time.


Universal Life Insurance: Providing tax savings related benefits

Universal life insurance provides several advantages to Canadians with regards to taxes. The following are four key tax advantages of universal life insurance.

1. Your savings within the policy grow tax-sheltered. Each universal life policy has a minimum and maximum premium. The minimum premium generally covers the cost of insurance and any administrative charges. When we overfund the policy beyond the minimum premium, that creates an accumulation fund which grows on a tax-sheltered basis.  Tax-sheltered growth facilitates a better compounding of money. Most insurance companies have a range of investment options that the insured can choose from. Certain companies have a few hundred different types of funds options to choose from.


Buying life insurance for kids

This could be a very sensitive topic for discussion for some. However, depending on the family situation, parents do consider taking insurance on their kids in the following manner:     Life Insurance on the kids is taken in small amounts as a rider to the parents’ policy. This is a very cost effective way to insure the kids.



Prepared by:  Aman Kapur


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