lifeinsurance-onweb.com

The beneficiary is the person indicated in the life insurance police to receive with your death the amount of the insurance. You can designated a beneficiary (your spouse for example), or you can leave the money to a trust? If you choose to leave the money to your having right, the money will be fixed with expenses of homologation at the time of the payment of succession. If you choose a trust, you must take care to inform a tax adviser.

If you indicate a beneficiary, the money does not enter in your succession, but is directly versed to the person or the organization that you indicated. The beneficiary does not have homologation expenses to pay.

PROTECTION AGAINST CREDITORS

Depending of who is the designated beneficiary, the assured capital can be or not under the shelter of the creditors. Provincial and States insurances laws stipulate that if the beneficiary is a spouse, a child, a small-child, the father or the mother, the assured capital can be seized by creditor. Within Quebec, the beneficiary must be related to the police holder. In the other provinces, it must be related with the policy-holder. In US it depend on wich states. This provision applies to the adoptive children in the majority of provinces, but not with an ex-conjoint, except if this one were indicated profit irrevocable.

IRREVOCABLE BENEFICIARY RECIPIENT

You can designate a beneficiary recipient or a trust on a purely irrevocable basis. That means that as the holder of the police, you can't change or revoke the beneficiary recipient without consentment.

The assured capital is protected from your creditors and it do not enter into your succession. In Quebec, the spouse is considered like an irrevocable recipient but, in the event of divorce, it loses automatically this statute.

CHARITABLE ORGANIZATIONS DONATION

You can use life insurance for making charitable organizations donations. At your death, the sum you dedicated to is paid to the organization that you designate. In that case premiums may be income taxable deductive if the charity organization is approved by the Customs Agency and Revenue Agency Canada or other state or federal government agency.

Last Wills and Testament

It should be noticed that a new recipient designation will not cancel one insurance policy designation made before, except if the will mentions specifically the insurance policy (even in this case, the irrevocable beneficiary recipient keeps all its rights).

Jurisprudence bring back the case of a man who indicated on testament his new wife sole legatee of his succession. But he had not modified life insurance policy designation in favor of his new wife. The preceding life insurance policy beneficiary, in this case his ex-wife, claimed against the last wills and testament. The court has decided that assured capital will return to the preceding wife.

Divorce and Life Insurance

In the event of divorce if you receive an alimony make sure that the payments are assured.

There are two ways of proceeding:

The beneficiary is the person indicated in the life insurance police to receive with your death the amount of the insurance. You can designated a beneficiary (your spouse for example), or you can leave the money to a trust? If you choose to leave the money to your having right, the money will be fixed with expenses of homologation at the time of the payment of succession. If you choose a trust, you must take care to inform a tax adviser.

If you indicate a beneficiary, the money does not enter in your succession, but is directly versed to the person or the organization that you indicated. The beneficiary does not have homologation expenses to pay.

PROTECTION AGAINST CREDITORS

Depending of who is the designated beneficiary, the assured capital can be or not under the shelter of the creditors. Provincial and States insurances laws stipulate that if the beneficiary is a spouse, a child, a small-child, the father or the mother, the assured capital can be seized by creditor. Within Quebec, the beneficiary must be related to the police holder. In the other provinces, it must be related with the policy-holder. In US it depend on wich states. This provision applies to the adoptive children in the majority of provinces, but not with an ex-conjoint, except if this one were indicated profit irrevocable.

IRREVOCABLE BENEFICIARY RECIPIENT

You can designate a beneficiary recipient or a trust on a purely irrevocable basis. That means that as the holder of the police, you can't change or revoke the beneficiary recipient without consentment.

The assured capital is protected from your creditors and it do not enter into your succession. In Quebec, the spouse is considered like an irrevocable recipient but, in the event of divorce, it loses automatically this statute.

If it's easy to fix the price of one manufactured good according to materials cost and production expenses, it's different for a life insurance policy, which differs even from dwelling or car insurance policy since it can remain in strength during 50 years or more.

Insurance companies can in any way of knowing their costs exactly, theirs incomes of placement or theirs future technical results. In consequence, they make long-term projections which rest on statistics or actuarial data, with the mortality tables assistance, the death rates with the various groups of population age. They also melting their estimates with expenditure regards, interest rate and futures death rate. These calculations are carried out by actuaries who receive actuarial mathematics training applied to the life insurance.

Equitable Tarrifing

Before approving your proposal, the insurance company must evaluate the degree of risk you represent.

It is obvious that the risk grows with age and deterioration of your health. The pooling of similar risks makes it possible to obtain an equitable tariffing. The statistics data are joined together in order to divide the individuals by “categories of risk”.

The insurance price - the premium - translated the risk evaluation. More the risk is weak for a category data, plus the premium is weak. To evaluate the risk, the insurer takes many factors into account: the age, the sex, the medical antecedents and the state of health. Thus, in average woman pay lower premiums than men. Indeed, the statistics clearly show than men. Same for nonsmokers who pay lower premium rates.

If you are paid, this life insurance form can be offered to you by your employer or your trade union.

In General, it is about one temporary insurance (in theory up to 65 years) covering a group people under a contract collective term. A certificate is given to you attesting your coverage. When it is an important group, it often arrive that no justification of assurability, medical or other, is required.

The insurance group is one of the capital element of your total coverage. But the protection of which you profit can end as soon as you do not being part of the group anymore. Check if the mode allows you to transform your insurance in individual insurance if you leave the group, or if the collective cover ends for any other reason.