London Life - Whole Life - Par Policy

[Time&money]

London Life - Whole Life - Participating policy

I have received several phone calles asking about London Life - Par Policy. Quite a few do not fully understand how the dividends work.

Please check www.londonlife.com for one of the problems London Life has right now for its dividend option - Premium offset

{"Settlement Implementation

London Life has settled class actions regarding premium offset, policy values and income claims. The settlement was approved by the courts in B.C., Quebec and Ontario and covers all eligible policyowners, wherever they live.
London Life is in the process of implementing the settlement and providing information to eligible policyowners. }

Clearly dividend is NOT guaranteed and how long you are going to pay the premiums is Not guaranteed depending on the dividends.

On Page 6, "Your Guide to Londond Life's participating life insurance" it states that Dividends are not guaranteed and will vary upward or downward, from those illustrated depending on future dividend scales."

Please read your London Life - Par polciy before you makes your final decision. If you have any more questions, please feel free to email. Thank you.

 

[Time&money]

Here is some more info about National Life UL.

What Is Guaranteed Life Insurance?

Do you like knowing exactly how much things costs? Do you prefer safe investments like GICs that pay fixed interest over riskier alternatives like mutual funds in which you could lose money? If so, guaranteed life insurance may give you the peace of mind you're after.

There is no standard definition for guaranteed life insurance. Most life insurance policies already have many guarantees such as the cost of insurance rates and the tax exempt status of the death benefit. Those guarantees are very useful, but they are not enough for everybody. You may want more. You may want the assurance that paying specified premiums will keep a specified amount of insurance coverage in place for life without any other conditions. Not many products offer that. The worst situation is to buy something that does not perform the way you expected.

With National Life, you can have a choice of paying your premium for 10 years, 15 years, 20 years and for life time. These options are guaranteed.

For more info, please feel free to email. Thank you.

 

[Time&money]

Dividend Options - Par Whole Life

Participating Whole Life Policies have 9 Dividend Options (dividend payments are not guaranteed):

Accumulation
Premium reduction
Enhancement
Paid-up additions
Special term addition
Investment fund
Cash
Addtional Terms (one year term)
Premium offset or abridged

Please note future dividends can not be guaranteed.

 

[dkwan]

its good that you know the fixed cost for insurance, but a couple of things people should be thinking when buying whole life policy

1) Does the coverage enough? Many people have insurance based on cost, not on their needs because the premium is so expensive not many people can afford.

2) With whole life policy, where does the cash value component goes after insured die?

3) GIC is safe investment, but sometimes its too low that not even beat inflation?

4) Some life insurance product ( like segreate funds ), they are seperated from insurance policy, but also provide the capital safeness ( some 100%, some 75% ) and have the advantage of unlimited growth like mutual fund

5) How does the premium distribute between insurance premium and investment premium?

6) How does the money invested inside the policy? cause if you dont invest, where comes the dividend.