Ever wonder how to get the best life insurance policy in Alberta? In Canada, the distribution of insurance products is provincially regulated, and If any individual or business offers life or health insurance they must be licensed by their provincial regulator. In Alberta, the insurance regulator is the Alberta Insurance Council.
An independent insurance or financial advisor is the best way to get a life insurance policy. Independent advisors typically represent many leading life insurance companies and offer the best solutions based on clients’ requirements. Almost all Canadian life insurance companies are well represented in Alberta. Independent advisors are compensated for their services by insurance companies in a unified way, so clients would pay exactly the same price for the same product, from the same company, regardless of where they get it from. At Mission Insurance, we represent all the leading life insurance companies in Canada, including Canada Life, Manulife, Sun Life, RBC Insurance and BMO Insurance.
There are generally two types of life insurance policies, permanent and term. Permanent policies provide coverage throughout the entire life of the insured and term policies provide coverage for a predetermined amount of time, such as 10 or 20 years. Since permanent policies typically have an investment element, the decision of obtaining one would require a more detailed financial planning process. This includes tax, investment risk and estate planning, which is beyond the scope of this article. Here, we would highlight the necessary steps for getting the best term life insurance policy.
The first step in getting the best life insurance policy is to determine how much coverage you may need. Your advisor will help you determine the amount of coverage through a well-defined process called financial needs analysis. Your advisor will gather information about your financial liabilities, such as mortgages and loans. They will also discuss future goals such as replacing your income and children’s education costs to estimate the total amount of coverage that is needed if the insured should pass away. There are many online tools available, which could help you get a good estimate of the amount of coverage that is required. A user-friendly option is InsureRight, from Manulife Financial.
The second step is to determine the most suitable term for your policy. Based on your needs analysis, duration of the liabilities, age of your dependents, and your budget, your advisor will recommend the most suitable term for your policy, e.g. 20 years. During this term, premiums and benefits are fixed and contractually guaranteed by the insurance company. As long as the premiums are paid regularly, the policy will remain in force.
The next step would be to choose the best plan from various insurance companies. Here, your advisor would consider your age, amount of coverage, health profile, lifestyle, and other factors such as available options for conversion to permanent policies, additional benefits such as critical illness and disability, underwriting requirements, and premiums to recommend the best plans. Some policies require medical examinations, and some policies can be underwritten simply by completing a detailed questionnaire. This step is crucial because changing the policies or the providers in future might not be feasible, due to the insured’s health, age, or other reasons.
When the best life insurance plan has been selected, an application will be completed and submitted to the insurance company. This part can be completed electronically and remotely for your convenience. Your advisor will monitor the underwriting process and if there are additional requirements, he or she will make sure that the requirements are properly fulfilled, and the policy is issued, then the insurance coverage begins. When the policy is received, your advisor will check the policy for any potential errors and ensure that it is exactly as intended.
Throughout the time that you own your policy, you may need to make some changes, such as changing the beneficiaries, your address, your banking information, amount of coverage or adding other benefits, and converting your policy to a permanent plan. Your advisor will help you to maintain your policy and make necessary changes in the best way possible.
When choosing the best life insurance, there are many factors to consider. Here at Mission Insurance, we strive to help our clients choose the best product for them and their families to provide comfort, and value for years to come.
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