Term life insurance in Canada

Yesterday I reactivated the canadian life insurance section on the discussion forum. I had this discussion area over at http://www.quality-ins.com, but I feel that we'll get more mileage out of it here.

One thing I've found with most life insurance sites is that they might have a blog, but they don't have a discussion area. Life insurance is hard to understand for the lay person, and it deserves some time to learn about it.

Recently I saw a program on CBC's Marketplace that really scared me. The program was titled "Mortgage insurance: Not always a sure thing".

This Marketplace show was nicely researched and told me that if you buy mortgage insurance the chances of you collecting on it are much slimmer than regular life insurance .

Here are some points that CBC's Marketplace brought out.

How to buy life insurance that really will protect you
Be sure you qualify.
* There are many terms and exclusions associated with credit insurance policies. Learn what they mean and how they apply to you.
* Call the insurance company directly (NOT the bank that sold you the coverage) for clarification about pre-existing medical conditions.
* Call your doctor to clarify details of any pre-existing medical conditions you may be concerned about.

In my opinion it is better to get a real life insurance policy to cover your mortgage than to buy mortgage insurance. First off, it's cheaper in the run and you get more value for your money.

Secondly, with a life insurance policy to cover your mortgage, you're going to do a health exam which will immediately underwrite you with no worries of collecting in the future. There will no questions in future like there will be with these horrible mortgage insurance products.

BOTTOM LINE: Be sure you qualify first and are underwritten first before you purchase your life insurance.

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