In the previous issue, I had discussed the unique features of the extremely remarkable life insurance plan Adaptable underwritten by UL Mutual Insurance Company. While the plan is quite impressive, as a prospective client, one may have queries about the plan. I hope the below-mentioned questions and their answers will clarify your queries:
• For how long shall we have to pay?
You shall have to pay for a minimum of 20 years. To make it more affordable, we can increase payment period till age 25, 35, 45, 55, 65, 75, 85 and 95 life insurance available at age 75.
• Can we buy the lower face amount or shall we have to buy one million dollar coverage?
No, it’s not mandatory to buy a million dollar coverage. As per your own affordability, you can purchase coverage for lower amounts starting from $25,000. The great feature is that the cash values will be half the amount of coverage at age 65. For example, for 100,000 coverage- 50,000 cash value; for 200,000 coverage100,000 cash value and; for 500,000 coverage- 250,000 cash values at age 65- in all cases, if you buy the plan before age 45.
• Through which insurance company do you do this insurance? The Adaptable insurance plan in which the cash values at age 65 are ‘guaranteed’ half of the sum insured, is offered by UL Mutual. • Since when has this UL Mutual Insurance Company been in existence? UL Mutual is in the insurance business since 1889. Recognized in the insurance and financial services market for its financial strength, UL Mutual has a solvency ratio of more than 200% and has the strength of more than 250,000 members. UL Mutual is a member company of Assuris. Founded as a notfor-profit organization in 1990, Assuris is designated by the federal Minister of Finance under the Insurance Companies Act of Canada. It protects Canadian policyholders if their life insurance company fails.
• If I cancel my policy after five years, do I get something back? No, you won’t get anything. Term Life insurance is usually for short-term and Permanent Insurance is for long-term needs. If you cancel the insurance policy within ten years, there are no cash values and you will lose all the money. But, if you are planning insurance for a short-term period, it’s better to buy some Term Insurance such as Term 10, 20, 30 or till age 40. It should be kept in mind though – you cannot treat your life insurance as a bank account which can be encashed within 3-4 years. It doesn’t go like that – Life insurance is a long-term plan.
• When does the cash value start building up?
The cash values in the Adaptable plan start building up after ten years and the biggest attraction of the plan is that at age 65, cash values will be half of the face value and its guaranteed (applicable before age 45).
• Once the market fluctuates in case the interest rate goes down or if the company doesn’t make any income, will my cash values at age 65 change or reduce? No. Adaptable life insurance contract is a guaranteed and permanent plan. It doesn’t fluctuate with the fluctuating interest rate of the market and also, doesn’t depend upon the income of insurance company. If you pay your premium on time as per your chosen period, nothing can be changed. The life insurance contract is ‘fully guaranteed’.
• What options do I have, especially at age 65 if I want to withdraw the money? You have a few options: a) You can fully surrender the contract and encash the money/funds but tax will be applicable. The surplus of the total ACB will be imposed in relation to the total net surrender value. b) You can partially cancel the policy as per your requirement and encash the money from time to time. The tax will be applicable. The pro rata surplus of the total ACB will be imposed in relation to the total net surrender value. c) You can borrow against the cash values. In case of a loan, the excess of the ACB is taxable. (Note: Please, must see Provisions Adaptable at our website: https://www. punjabinsurance.ca/pdfs/ Provisions-AdaptableADA11510A.pdf)
• I like the plan, but right now, I can’t afford much premium. What shall I do if I want to purchase?
You can purchase the plan to select the coverage as per your future needs. Part A coverage ‘Term’ – can be done as per your needs (even for higher amounts of coverage, which is a very affordable/reasonable option). Furthermore, you have the option to upgrade it to Permanent Plan as per your needs, if you feel that your affordability will increase in the future. You will be given this opportunity three times – in 3rd year, 5th year and 7th year respectively.
• If I lose the job, how should I pay the premium?
We can add a rider on the insurance policy ‘WPLE’. By adding that, your premiums are waived for a maximum of 12 months per 5 years period. Once the insurance policy has been in force for one year and, if you lose your job due to a lay off (due to slow work), merger or acquisition of companies, strike or lock-out as well as pregnancy, your premium will be waived off as long as the disability lasts. For the period specified by Law. If you add disability rider, during your period of disability, after a waiting period of six months of total disability, your premium will be waived as long as the total disability lasts. Premiums paid during this waiting period of six months are also reimbursed. For the first 24 months, total disability means being prevented by an incapacity resulting from an accident or illness from performing each and every task related to insured’s principal occupation. WPLE is also very FAQs – One Million Life Insurance with Half Million Guaranteed Cash Values at age 65 Sandeep Ahuja good for female clients who are in the future plan of having a baby. If you have this rider, once the policy has been in force for one year, and you go on maternity leave, the premium will be waived off as per government provisions.
This Adaptable plan in very unique in nature. It is very close to the needs of the community who always want a secure future for their kids/family and also want to save money for their ‘golden age’. Parents whose kids are studying in some professional field and are planning to enter the workforce soon should purchase coverage under this plan so that they may help their kids make good financial decisions to start early for life insurance needs and saving habits. Those in 35-45 age bracket- if they don’t have any savings till date for their retirement and don’t have any insurance, they must consider this plan. It is important that Insurance advisors should do proper life insurance and financial needs analysis before advising the clients to opt for this plan. One has to be a Canadian citizen or a permanent resident to opt for this plan and the insurance company has to conduct thorough medical and financial underwriting beforehand. These points have been discussed for information purpose only. Once you do insurance, the underlying provisions of Adaptable plan govern.
It gives me delight to convey that due to its immense popularity among clients, this wonderful promotion has been extended till December 31, 2018. To reap maximum benefit of this unique opportunity, without wasting time, please contact me immediately. As an independent insurance advisor working through Punjab Insurance Agency and dealing with different insurance companies, I can explain to you in detail the features of this useful insurance plan and will assist you to avail the best insurance coverage suitable for your needs and resources. Besides, I can also help you to purchase mortgage insurance, super visa insurance, disability insurance, critical illness insurance, extended medical plans, group medical plans, RESP, RRSP, travel insurance, TFSA accounts, health, and dental plans along with estate planning suitable for your needs and resources. For a no obligation please contact me.