Whole Life Insurance could be an answer…

Whole Life Insurance could be an answer…

 Many insurance companies have increased their rates by around 20-25%. Particularly the increase has been on Universal Life plans with a level cost of insurance where the cost of insurance is guaranteed to remain constant.

Do we generally know why this is happening?

Yes, this is because the interest rates are at an all-time low which impact the profitability of the insurance company. This makes the cost of doing business for insurance companies high and hence that impacts the increase in prices. On top of this the requirements to increase the reserve requirements impacts company liquidity. This would also result in the rates going up.

A whole life Plan from Industrial Alliance named the Ultra 15 Whole Life remains quite an attraction both in terms of costs and benefits.  The life insurance industry has seen tremendous change over the last 24 months.

The Ultra 15 Whole Life has the following interesting features:

  1. A return of premium plus death:  in the event of death, the L15 Ultra coverage provides for the return of premiums, in addition to the death benefit. The premiums returned include the basic annual premium for L15 Ultra coverage. Excluded are policy fees, the modal premium, extra premiums (if any) and premiums for riders and/or additional benefits.


       2.      Higher Surrender value than some competitive plans

The guaranteed surrender value represents the sum available at a given time if the policy should be surrendered. Note that the surrender value may be subject to the Income Tax Act.

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


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Prepared by: Aman Kapur


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