Sun Life is the third largest life insurance company in Canada in terms of revenue in 2014. Even with its success, Sun Life understands that life insurance is a competitive market. Therefore, it recently announced that starting on February 2, 2015, it will be making improvements to its term life insurance policy, also known as SunTerm.
The critical illness insurance marketplace is highly competitive, with most insurance companies offering some sort of product. It's becoming increasingly simple for consumers to acquire coverage with competitive rates and flexible riders, and Manulife has fallen behind its competition with its critical illness insurance product, Lifecheque.
According to a recent survey by RBC, Canadian workers are underestimating the importance of disability insurance. Out of 1,000 employed Canadians polled, 45% believe disabilities occurs infrequently. However, current statistics indicate that 1 in 7 adults are currently disabled, and 1 out of 3 adults will become disabled for longer than 90 days before the age of 65.
On Monday, July 28, Assumption Life launched Critical Protection, a simplified issue critical illness product. Critical Protection is Assumption Life's first foray into critical illness insurance, having previously offered only life insurance. Let's take a look at Critical Protection and how Assumption Life plans to target this product.
The three main players in disability insurance in Canada have all within the last year announced premium decreases for their products. Starting with Manulife in late 2013, followed by Great-West Life and its subsidiary Canada Life in April, and now RBC Insurance. The reasons cited were to remain competitive in the individual disability insurance marketplace and changing morbidity trends. Morbidity is the rate of disabilities among the general population, similar to how mortality is the rate of death. The lowering of premiums means that morbidity is decreasing.
Most Canadians understand that life insurance is an integral part of a sound financial plan. The death benefit helps pay off debt and provides an income for the survivor and should be top priority for the average Canadian. Despite this, in a new article published by Investment Executive, statistics show that fewer Canadians are purchasing life insurance compared to three decades ago. Although the percentage of people who have life insurance is on the decline, the need for life insurance is not. What can be done to reverse this trend?
Do you think you can get away with defrauding an insurance company? A couple from Toronto apparently thought they could by having the husband fake his death to collect on death benefits of around $3.5 million. The couple pleaded guilty to insurance fraud after the husband, Alireza Shojaei, was found alive in California.