Life Insurance Services

Through our referral partners, A.L.F. Group Services Inc. is proud to provide our customers with a broad range of life insurance solutions.

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Term Life Insurance

Excellent choice for budget-conscious young families. This insurance offers level premiums for a term (e.g. 10 years, 20 years) after which the premiums increase to a new level for the next term.

It eventually expires, usually around age 75 or 80. However, you may find that, after one or two terms are up, you no longer need insurance, in which case term insurance is the best choice - we will shop the market for you and give you your lowest rates!

However, if you're thinking about keeping your insurance for longer, or for tax- or estate-planning purposes, then permanent is the best for you.

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Permanent Life Insurance

The right choice for tax planning, estate planning, business succession and supplemental retirement income. As opposed to term insurance, permanent insurance offers level premiums for life and will not expire.

The premiums start out higher than term insurance, but eventually the term premiums will overtake the permanent premiums. There are 3 main kinds - Term to 100, Whole Life and Universal Life, each with its own advantages and disadvantages.

The latter two allow you to shelter investment income from tax and to prepay your premiums in a short period of time. You can even use the policy to obtain tax-free retirement income!

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Mortgage Life Insurance

What are the four main advantages of an individual life insurance policy as compared to mortgage life insurance from a bank?

1. Your death benefit stays the same throughout the policy, unlike bank insurance, where the death benefit will likely decrease without a corresponding drop in premiums.
2. You will benefit from being a non-smoker, unlike most bank insurance.
3. You have a private contract which you can take with you even if you switch banks and therefore have guaranteed coverage. With bank insurance, if you have since become unhealthy, you will not get insurance!
4. Your beneficiary has the flexibility to apply the proceeds as (s)he sees fit, unlike a bank policy, where the proceeds go to the mortgage, even if the rate is very low and there is a more cost-effective place to use the proceeds (e.g. other outstanding loans or debt).

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Disability Insurance

The interesting thing about disability insurance is that it is less understood and discussed than life insurance, but is more likely to be needed than life insurance. For example, in 1984, nearly half of the mortgage foreclosures in Canada were as a result of disability, while only 3% resulted from death (Society of Actuaries, 1985). 

Apart from buying an individual disability insurance policy, one may be covered against disability in one or more of the following ways:

1. Coverage under a group benefits plan provided for by an employer or an association. This is low-cost coverage, but the definition of disability is usually narrower than with an individual plan. In addition, it is non-contractual, and can therefore be terminated at any time, and if you leave your job, some plans can be converted to individual plans, but at very high premiums.
2. Coverage under a government plan. The coverage is even narrower here. For example, there is disability coverage under the Canada Pension Plan, but only if the disability is "severe and prolonged", thus excluding serious but temporary disabilities. If your employer is covered by Workers Compensation, then you will be covered for a work-related injury or illness, but not any other injury or illness, which is far more likely to occur. Finally, Employment Insurance may cover you, but only for a short time.
3. Coverage under your auto policy. Covers for car accidents only, and has further limitations. Who can really benefit from disability insurance? People who do not have group plans at work or an association, including self-employed people, or employees of small businesses that do not have plans. Who else? Highly paid professionals who can't afford to risk the limitations of a group plan.

Through our referral partners, A.L.F. Group Services Inc. will be pleased to help you navigate the maze!

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