Personalized Insurance Quotation and Quote Help Definitions

British Columbia
Please Note: Comparisons and quotes are intended for guidance and educational purposes only.  The consumer is urged to seek the advice of independent life insurance advisors.

    
Face Amount

(Amount of Coverage)

This figure represents the Death Benefit that would be payable should the life insured (the person whose life is insured by the policy) die during while the insurance policy contract is in force (valid and in effect).

The “Face Amount” may either remain constant (as in most guaranteed term, T100, level Whole Life and Level Death Benefit Universal Life contracts) or may vary down or up.

While in most cases the “Face Amount” would remain constant, it would decrease over time with such policies as “Reducing Term” or “Mortgage Insurance”… or may reduce in non-guaranteed products or may be reduced in “participating” or “variable” or “adjustable” contracts. In other cases, the Death Benefit may increase, such as through use of certain “dividend options” in “participating” Whole Life policies or when a Universal Life contract is structured for increasing death benefit over time.

To view the coverage amount (“death benefit”) over time, run a survey then click on any premium amount shown to display future years’ renewal “death benefit” amounts and premium costs.

Premiums

The “Premium” is the amount of money, all inclusive, that is to be paid for the continuation of the insurance coverage. The “Premium” amount consists of numerous components, including actual cost of insurance, administrative and maintenance costs including salaries and insurance company head office expenses, promotional expenses, taxes and research expenses.

The “sales costs”, part of the “promotional expenses”, are the same for each contract regardless of whether the contract is purchased through an independent broker, an insurance company commissioned or salaried representative, by direct mail or through an insurance for sale site on the Internet. In other words, the “premium” cost of the same contract from the same company to you, the consumer, is the same regardless of the method by which it is sold to you.

The figures under the heading “Premium” represent the amount that is to be paid on the basis of the Premium Payment Mode chosen in the earlier input screen and as noted on the heading.

If “Annual”, this means that the premium amount is payable once yearly – If “Semi-Annual”, this means that the premium amount is payable every 6 months, twice per year – If “Quarterly”, this means that the premium amount is payable every 3 months, 4 times per year – If “Monthly”, this means that the premium amount is payable each month, 12 times per year

The Premium amounts shown are based on information from the insurance companies. Health, lifestyle, occupation, avocation, driving record, immediate family history and the like may cause underwriting decision variations. The policy contract governs in all cases.

Annual

By the word “Annual” for “Annual Premiums” it is meant that the total sum of the premium amount for the year is payable once per policy year in advance.

By the words “in advance”, it is meant that the premiums are payable at the beginning (theoretically on the first day) of each policy year.

The “policy year” commences with the day of the month as stated in the policy contract and its duration is for a full year, commencing with the first day and ending at the end of the preceding day of the following calendar year. For example, a policy year that commences on September 12th continues to and includes the day of September 11th of the following year

The payment of premiums by means of “annual” payments is the most cost effective way, and most recommended particularly if the premiums are paid with “after-tax” dollars (“after tax” dollars represent the money that is left from earnings, after income taxes are paid; for example a person in the 50% income tax bracket would have to earn $2,000 in order to have $1,000 in “after-tax” dollars to pay for the premium).

Semi-Annual

By the word “Semi-Annual” for “Semi-Annual Premiums” it is meant that the total sum of the contract-stipulated semi-annual premium amount for the half-year is payable twice per policy year in advance of each half-yearly policy period.

By the words “in advance”, it is meant that the premiums are payable at the beginning (theoretically on the first day) of each half-year of the policy.

The “policy year” commences with the day of the month as stated in the policy contract and its duration is for a full year, commencing with the first day and ending at the end of the preceding day of the following calendar year. For example, a policy year that commences on September 12th continues to and includes the day of September 11th of the following year. The “half-year” commences with the day of the month as stated in the policy contract and its duration is for a half-year. The “policy year” then consists of an additional, second “half-year”, that commences immediately upon the end-point of the prior “half-year”.

The payment of premiums by means of “annual” payments is the most cost effective way, and most recommended particularly if the premiums are paid with “after-tax” dollars (“after tax” dollars represent the money that is left from earnings, after income taxes are paid; for example a person in the 50% income tax bracket would have to earn $2,000 in order to have $1,000 in “after-tax” dollars to pay for the premium).

The payment of premiums by means of “semi-annual” payments is less cost effective than the “Annual” premium payment mode. The “semi-annual” premium payment mode is not offered for all products (policy contracts). If the “semi-annual” premium payment mode is requested on WinQuote(tm) comparison surveys, products that do not offer the “semi-annual” premium payment mode are not excluded but are surveyed on the basis of the aggregate sum of “monthly” premiums that would be payable over six months. When a semi-annual premium payment mode survey is requested on WinQuote(tm), and when one or more products that are included in the WinQuote(tm) comparison survey do not offer “semi-annual” premium payments, WinQuote(tm) places a special marking notation “m”, next to such products to indicate that the premium figure displayed represents the equivalent of six “monthly” premium payment mode payments (for comparison purposes only).

Quarterly

By the word “Quarterly” for “Quarterly Premiums” it is meant that the total sum of the contract-stipulated quarterly premium amount for each policy quarter year is payable four times per policy year in advance of each quarter-year policy period.

By the words “in advance”, it is meant that the premiums are payable at the beginning (theoretically on the first day) of each quarter year of the policy.

The “policy year” commences with the day of the month as stated in the policy contract and its duration is for a full year, commencing with the first day and ending at the end of the preceding day of the following calendar year. For example, a policy year that commences on September 12th continues to and includes the day of September 11th of the following year. The “quarter-year” commences with the day of the month as stated in the policy contract and its duration is for a quarter-year. The “policy year” then consists of three additional “quarter-year” periods, with each quarter commencing immediately upon the end-point of the prior “quarter-year”.

The payment of premiums by means of “annual” payments is the most cost effective way, and most recommended particularly if the premiums are paid with “after-tax” dollars (“after tax” dollars represent the money that is left from earnings, after income taxes are paid; for example a person in the 50% income tax bracket would have to earn $2,000 in order to have $1,000 in “after-tax” dollars to pay for the premium).

The payment of premiums by means of “quarterly” payments is less cost effective than either the “Annual” or “Semi-Annual” premium payment mode. The “quarterly” premium payment mode is not offered for all products (policy contracts). If the “quarterly” premium payment mode is requested on WinQuote(tm) comparison surveys, products that do not offer the “quarterly” premium payment mode are not excluded but are surveyed on the basis of the aggregate sum of “monthly” premiums that would be payable over three months. When a quarterly premium payment mode survey is requested on WinQuote(tm), and when one or more products that are included in the WinQuote(tm) comparison survey do not offer “quarterly” premium payments, WinQuote(tm) places a special marking notation “m”, next to such products to indicate that the premium figure displayed represents the equivalent of three “monthly” premium payment mode payments (for comparison purposes only).

Monthly

By the word “Monthly” for “Monthly Premiums” it is meant that the total sum of the contract-stipulated monthly premium amount for each policy month during the policy year is payable twelve times per policy year in advance of each month during the policy year policy period.

By the words “in advance”, it is meant that the premiums are payable at the beginning (theoretically on the first day) of each month of the policy.

The “policy year” commences with the day of the month as stated in the policy contract and its duration is for a full year, commencing with the first day and ending at the end of the preceding day of the following calendar year. For example, a policy year that commences on September 12th continues to and includes the day of September 11th of the following year. The “month” commences with the day of the month as stated in the policy contract and its duration is for one month. The “policy year” consists of twelve “month” periods, with each month commencing immediately upon the end-point of the prior “month”.

The payment of premiums by means of “annual” payments is the most cost effective way, and most recommended particularly if the premiums are paid with “after-tax” dollars (“after tax” dollars represent the money that is left from earnings, after income taxes are paid; for example a person in the 50% income tax bracket would have to earn $2,000 in order to have $1,000 in “after-tax” dollars to pay for the premium).

The payment of premiums by means of “monthly” payments is normally the least cost effective while the “annual” premium payment mode is normally least costly.

Risk - Preferred

“Preferred” premium rates are offered to a segment of the population who satisfy stringent underwriting qualification acceptance requirements. These stringent requirements normally include but are not necessarily limited to:

  • Much better than average cholesterol levels
  • Strict adherence to stringent blood pressure level requirements (usually) without medication
  • Strict adherence to defined height/weight ratios
  • No significant personal medical events history
  • No significant immediate family medical history.
  • No involvement in hazardous or dangerous occupations
  • No involvement in hazardous or dangerous avocations or sports
  • No travel to or residence in hazardous areas in the world
  • Absence of personal criminal history
  • Absence of personal bankruptcy
  • Rare or no use of alcohol or drugs (other than where “preferred” may be offered for consumers of tobacco and/or related substances/products) have either never smoked or consumed tobacco products or strictly meet the respective insurance company’s specified “non-smoker” requirements. Note: Misstatement of tobacco and/or related substances consumption/use history may render the contract “void”.
  • Other requirements as may be stipulated in each respective company’s underwriting guidelines from time to time.

Note 1
Although “Preferred” rates may appear very attractive, there may be other reasons for a company to decline to issue a term life insurance policy at “Preferred” rates. It is VERY STRONGLY recommended that you consult with a qualified life insurance agent be consulted prior to the making of an application and that you view “Preferred” rates only as an “optimistic scenario” possibility.

Note 2
Please note that renewal costs and/or premium guarantees, including during the initial term period may vary substantially among policies and companies. Please review these carefully with a qualified agent who is equipped with the independently produced WinQuote™ Professional Insurance Comparison Software.

Health Risk - Select Regular

Select Regular” premium rates are offered to a segment of the population who satisfy stricter than normal insurance company specified underwriting qualification acceptance requirements. These stricter than normal requirements may include but are not necessarily limited to:

  • Better than average cholesterol levels
  • Better than average blood pressure level requirements (usually) without medication
  • Better than average height/weight ratios
  • No significant personal medical events history
  • No significant immediate family medical history.
  • No involvement in hazardous or dangerous occupations
  • No involvement in hazardous or dangerous avocations or sports
  • No travel to or residence in hazardous areas in the world
  • Absence of personal criminal history
  • Absence of recent personal bankruptcy
  • Moderate or no use of alcohol (other than where “Select Regular” may be offered for consumers of tobacco and/or related substances/products) have either never smoked or consumed tobacco products or strictly meet the respective insurance company’s specified “non-smoker” requirements. Note: Misstatement of tobacco and/or related substances consumption/use history may render the contract “void”.
  • Other requirements as may be stipulated in each respective company’s underwriting guidelines from time to time.

Note 1
Although “Select Regular” rates may appear attractive, there may be other reasons for a company to decline to issue a term life insurance policy at “Select Regular” rates. It is VERY STRONGLY recommended that you consult with a qualified life insurance agent be consulted prior to the making of an application and that you view “Select Regular” rates only as an “optimistic scenario” possibility.

Note 2
Please note that renewal costs and/or premium guarantees, including during the initial term period may vary substantially among policies and companies. Please review these carefully with a qualified agent who is equipped with the independently produced WinQuote™ Professional Insurance Comparison Software.

Health Risk - Regular

“Regular” premium rates are offered to a segment of the population who satisfy normal insurance company specified underwriting qualification acceptance requirements. These requirements may include but are not necessarily limited to:

  • Average cholesterol levels
  • Average blood pressure level requirements (usually) without medication
  • Average height/weight ratios
  • No significant recent personal medical events history
  • No significant trend in immediate family medical history
  • No involvement in hazardous or dangerous occupations
  • No involvement in hazardous or dangerous avocations or sports
  • No travel to or residence in hazardous areas in the world
  • Absence of personal criminal history within the past 10 years and no major criminal history
  • Absence of recent personal bankruptcy
  • Moderate or no use of alcohol (other than where “Regular” may be offered for consumers of tobacco and/or related substances/products) have either never smoked or consumed tobacco products or strictly meet the respective insurance company’s specified “non-smoker” requirements. Note: Misstatement of tobacco and/or related substances consumption/use history may render the contract “void”
  • Other requirements as may be stipulated in each respective company’s underwriting guidelines from time to time

Note 1
Although “Regular” rates may appear attractive, there may be other reasons for a company to decline to issue a term life insurance policy at “Regular” rates. In such cases, where the company may decline to issue a contract at “Regular” rates, the company may make an offer to issue the contract with a premium surcharge. It is VERY STRONGLY recommended that you consult with a qualified life insurance agent be consulted prior to the making of an application.

Note 2
Please note that renewal costs and/or premium guarantees, including during the initial term period may vary substantially among policies and companies. Please review these carefully with a qualified agent who is equipped with the independently produced WinQuote™ Professional Insurance Comparison Software.

Product Type/Term

Term life insurance provides for temporary coverage for a defined period of time.

There are two basic types of term life insurance policies. These are “Level Face Amount” and “Reducing Face Amount”. Level Face Amount policies provide for life insurance coverage that remains constant during the term of the policy contract. Some “Level” face amount policies also offer valuable options wherein the coverage may be increased at certain points in time. In contrast, “Reducing Face Amount” policies decreases over the term of the policy. “Reducing Face Amount” policies are also sometimes referred to as “Mortgage Term”.

Term life insurance policies may be “renewable” or “convertible” or both “renewable and convertible”. These provisions, if they are provided for, are stipulated in the policy contract wording.

Renewable
“Renewable” means that the life insurance policy may be renewed at the option of the policyholder without requiring the person whose life is insured to submit renewed proof of eligibility for the policy. Renewable term life insurance policies normally have a “final expiry date” or “final expiry age” beyond which the coverage cannot be renewed. When a term life insurance policy is renewable, it means that the insurance company cannot refuse to renew the coverage regardless of insurability of the person whose life is to be insured.

For term life insurance value comparisons, it is of utmost importance to consider the renewal costs that would be charged upon renewal. Policies that appear competitive on the basis of the premiums charged at inception (at commencement), may or may not be as attractive once the renewal costs are taken into consideration. It is also of utmost importance to check the frequency of renewal rate increases for renewable term life insurance policies. For example, US-style renewable term life insurance policies often renew as Yearly Increasing Premium policies – sometimes with prohibitive and punishing yearly skyrocketing renewal costs. Canadians are more fortunate as most Canadian renewable term life insurance policies feature “Level” renewal terms.

If the term life insurance policy is “renewable”, check for the following items:

  • What is the “final expiry age” beyond which you will not be able to renew the coverage?
  • What are the guaranteed renewal costs and how often and to what extent do the renewal costs increase? (Be particularly careful if the renewals are structured on a Yearly Increasing Cost basis!)

WinQuote(tm) provides you with the ability to view both the “final expiry” year, beyond which you will not be able to renew the coverage, as well as the guaranteed renewal costs. To view the year by year renewal detail for any policy quoted by WinQuote(tm), click on the premium amount displayed in the WinQuote(tm) comparsion survey.

Convertible
“Convertible” The option to convert a term life insurance policy to a permanent one is a very important and valuable contractual provision. Term life insurance contracts that are non-convertible should only be considered if the policyholder and life insured are confident and certain that the life insurance coverage will not be required beyond a known date during the affordable duration of the term life insurance policy (Note: Some life insurance policies, particularly those of the US style “Level to YRT” design, can become prohibitively expensive shortly after the expiry of the initial term!)

Convertible means that the term life insurance policy may be converted at the option of the policyholder to a “Permanent” life insurance policy with coverage “for life”, without requiring the person whose life is insured to submit new proof of eligibility for life insurance.

Convertible term life insurance policies normally have a “final conversion option expiry date” or “final conversion option expiry age” beyond which the term life insurance policy is no longer convertible. Some convertible term life insurance policies also have an exclusion period in the early years of the term life insurance policy during which the convertible policy is Non-Covertible.

If the term life insurance policy is advertised as “convertible” check at least for the following items:

  • Does the contract stipulate an exclusion period in the early years of the term life insurance policy during which the convertible policy is non-convertible?
  • What is the “final conversion option expiry date” or “age” of the policy being offered?
  • Is the policy offered for conversion known and guaranteed with respect to coverage and rates? If not, does the Company freely disclose the nature and rates for the conversion option policy?

Notes:

  • The short-form reference to term life insurance as “R&C” means “Renewable and Convertible”. Similarly “C&R” means “Convertible and Renewable”. Both have the same meaning.
  • Catch life insurance sales phrases such as “preferred”, “super-preferred”, “preferred plus”, etc. have made their way into life insurance sales ads. These words and phrases should not be considered generic – they are not – but should be recognized as merely sales terms.
  • Tobacco and related substance use (including marijuana) is a foremost aspect of underwriting qualification and of contractual wording and interpretation thereof. The only definition of a “non-smoker” that is applicable to all underwriting category-classifications by all insurers is “never ever smoked or used tobacco or related substances”. The only definition of a “smoker” that is applicable to all underwriting category-classifications by all insurers is “currently smoking cigarettes”. All other situations and cases differ widely among insurers and their respective underwriting category-classifications. Intentional or accidental mis-statement of your exact present or past use or consumption of tobacco or related substances may lead to forfeiture of the coverage under the policy, even beyond the two-year initial contestability period. Cost comparisons that fail to provide for accurate and detailed consideration of your present and/or past consumption of tobacco or related substances may be seriously deficient, may lead to overly optimistic expectations or to missed opportunities or both. Beware of so called “comparisons” that, with respect to tobacco and related substance consumption, rely merely on a “Yes” or “No” answer to an inadequate question such as “Do you smoke” or “Are you a smoker”! The crucially important factor of present and past tobacco and related substance consumption is recognized in the design and working of WinQuote(tm) and WinQuote(tm) therefore does provide for accurate data entry and consideration of past and present consumption or use of tobacco and related products.
  • Term insurance is an affordable means to commence life insurance coverage and to purchase larger face amounts of life insurance coverage. The considerations required to achieve the best value in term life insurance can be quite complex, with long-term consequences. It is in your best interest to consult with a qualified Canadian financial services broker or agent who uses the CompeteCA Professional multiple company life insurance comparison and evaluation software.
  • The above is a general overview of some of the aspects of term life insurance and is not meant or represented to be complete or comprehensive. For your individual needs and for your benefit we strongly recommend that you contact a Canadian financial services broker or agent who subscribes to the CompeteCA Professional software.
1 Year Term

1-Year Term is sometimes referred to as “YRT” (Yearly Renewable Term) and/or “ART” (Annual Renewable Term). The premium is established at inception (when the policy is issued) and, with few exceptions will increase every year in accordance with a predetermined yearly premium cost increase.

The yearly premium cost for future years may be either guaranteed or not guaranteed. For Canadian policy contracts, however, the maximum to which the premium could rise for each year is guaranteed.

1-Year Term is best suited for very short coverage needs but can also be used for situations where, temporarily, premium funding resources are very low and coverage needs are comparatively very high.

The key words are “short term” and “temporary” and the increasing cost aspect of 1-Year Term have to be kept in mind.

The foregoing is only a general description and it is strongly recommended that you consult with a qualified financial practioner, agent or broker, who can provide you with professional advice and with detailed CompeteCA(tm) comparisons and evaluations.

5 Year Term

5-Year Term policy contracts feature a guaranteed level premium for the initial period and, where the contract is “renewable”, subject to the “final expiry date of the contract”, for at least one additional guaranteed 5-Year level premium period.

The term “renwable” means that the policy may be renewed at the option of the insured without having to re-qualify for the coverage.

A “level premium period” is defined as a multiple-year period (in the case of 5-Year term, five years) during which the premium is guaranteed to remain constant and not to increase.

The “final expiry date of the contract” is a date beyond which the policy may no longer be renewed at the option of the insured. The “final expiry date of the contract” may differ among various term insurance offerings and is an important matter for consideration.

5-Year Term policy contracts may be either “convertible” or “non-convertible”. A “convertible” policy contract provides for the conversion (‘exchange’) of the term policy contract to a permanent policy, at the option of the insured, without requiring the insured to qualify for the new policy contract. “Convertible” term policy contracts provide important and valuable flexibility.

The “conversion period” is the period during which the term insurance policy may be converted at the option of the insured and without requiring the insured to qualify for the new policy contract. The “conversion period” is often different among term insurance offerings. The policy contracts offered by the insurance company for conversion purposes are also different. It is therefore important to consult with a knowledgeable financial advisor who is equipped with the CompeteCA(tm) Professional insurance and financial planning software.

10 Year Term

10-Year Term policy contracts feature a guaranteed level premium for the initial period and, where the contract is “renewable”, subject to the “final expiry date of the contract”, for at least one additional guaranteed level premium period.

The term “renwable” means that the policy may be renewed at the option of the insured without having to re-qualify for the coverage.

A “level premium period” is defined as a multiple-year period during which the premium is guaranteed to remain constant and not to increase.

The “final expiry date of the contract” is a date beyond which the policy may no longer be renewed at the option of the insured. The “final expiry date of the contract” may differ among various term insurance offerings and is an important matter for consideration.

10-Year Term policy contracts may be either “convertible” or “non-convertible”. A “convertible” policy contract provides for the conversion (‘exchange’) of the term policy contract to a permanent policy, at the option of the insured, without requiring the insured to qualify for the new policy contract. “Convertible” term policy contracts provide important and valuable flexibility.

The “conversion period” is the period during which the term insurance policy may be converted at the option of the insured and without requiring the insured to qualify for the new policy contract. The “conversion period” is often different among term insurance offerings. The policy contracts offered by the insurance company for conversion purposes are also different. It is therefore important to consult with a knowledgeable financial advisor who is equipped with the CompeteCA(tm) Professional insurance and financial planning software.

15 Year Term

15-Year Term policy contracts feature a guaranteed level premium for the initial period and, where the contract is “renewable”, subject to the “final expiry date of the contract”, for at least one additional guaranteed level premium period.

The term “renwable” means that the policy may be renewed at the option of the insured without having to re-qualify for the coverage.

A “level premium period” is defined as a multiple-year period during which the premium is guaranteed to remain constant and not to increase.

The “final expiry date of the contract” is a date beyond which the policy may no longer be renewed at the option of the insured. The “final expiry date of the contract” may differ among various term insurance offerings and is an important matter for consideration.

15-Year Term policy contracts may be either “convertible” or “non-convertible”. A “convertible” policy contract provides for the conversion (‘exchange’) of the term policy contract to a permanent policy, at the option of the insured, without requiring the insured to qualify for the new policy contract. “Convertible” term policy contracts provide important and valuable flexibility.

The “conversion period” is the period during which the term insurance policy may be converted at the option of the insured and without requiring the insured to qualify for the new policy contract. The “conversion period” is often different among term insurance offerings. The policy contracts offered by the insurance company for conversion purposes are also different. It is therefore important to consult with a knowledgeable financial advisor who is equipped with the CompeteCA(tm) Professional insurance and financial planning software.

20 Year Term

20-Year Term policy contracts feature a guaranteed level premium for the initial period and, where the contract is “renewable”, subject to the “final expiry date of the contract”, for at least one additional guaranteed level premium period.

The term “renwable” means that the policy may be renewed at the option of the insured without having to re-qualify for the coverage.

A “level premium period” is defined as a multiple-year period during which the premium is guaranteed to remain constant and not to increase.

The “final expiry date of the contract” is a date beyond which the policy may no longer be renewed at the option of the insured. The “final expiry date of the contract” may differ among various term insurance offerings and is an important matter for consideration.

20-Year Term policy contracts may be either “convertible” or “non-convertible”. A “convertible” policy contract provides for the conversion (‘exchange’) of the term policy contract to a permanent policy, at the option of the insured, without requiring the insured to qualify for the new policy contract. “Convertible” term policy contracts provide important and valuable flexibility.

The “conversion period” is the period during which the term insurance policy may be converted at the option of the insured and without requiring the insured to qualify for the new policy contract. The “conversion period” is often different among term insurance offerings. The policy contracts offered by the insurance company for conversion purposes are also different. It is therefore important to consult with a knowledgeable financial advisor who is equipped with the CompeteCA(tm) Professional insurance and financial planning software.

25 Year Term

25-Year Term policy contracts feature a guaranteed level premium for the initial period and, where the contract is “renewable”, subject to the “final expiry date of the contract”, for at least one additional guaranteed level premium period.

The term “renwable” means that the policy may be renewed at the option of the insured without having to re-qualify for the coverage.

A “level premium period” is defined as a multiple-year period during which the premium is guaranteed to remain constant and not to increase.

The “final expiry date of the contract” is a date beyond which the policy may no longer be renewed at the option of the insured. The “final expiry date of the contract” may differ among various term insurance offerings and is an important matter for consideration.

25-Year Term policy contracts may be either “convertible” or “non-convertible”. A “convertible” policy contract provides for the conversion (‘exchange’) of the term policy contract to a permanent policy, at the option of the insured, without requiring the insured to qualify for the new policy contract. “Convertible” term policy contracts provide important and valuable flexibility.

The “conversion period” is the period during which the term insurance policy may be converted at the option of the insured and without requiring the insured to qualify for the new policy contract. The “conversion period” is often different among term insurance offerings. The policy contracts offered by the insurance company for conversion purposes are also different. It is therefore important to consult with a knowledgeable financial advisor who is equipped with the CompeteCA(tm) Professional insurance and financial planning software.

30 Year Term

30-Year Term policy contracts feature a guaranteed level premium for the initial period and, where the contract is “renewable”, subject to the “final expiry date of the contract”, for at least one additional guaranteed level premium period.

The term “renwable” means that the policy may be renewed at the option of the insured without having to re-qualify for the coverage.

A “level premium period” is defined as a multiple-year period during which the premium is guaranteed to remain constant and not to increase.

The “final expiry date of the contract” is a date beyond which the policy may no longer be renewed at the option of the insured. The “final expiry date of the contract” may differ among various term insurance offerings and is an important matter for consideration.

30-Year Term policy contracts may be either “convertible” or “non-convertible”. A “convertible” policy contract provides for the conversion (‘exchange’) of the term policy contract to a permanent policy, at the option of the insured, without requiring the insured to qualify for the new policy contract. “Convertible” term policy contracts provide important and valuable flexibility.

The “conversion period” is the period during which the term insurance policy may be converted at the option of the insured and without requiring the insured to qualify for the new policy contract. The “conversion period” is often different among term insurance offerings. The policy contracts offered by the insurance company for conversion purposes are also different. It is therefore important to consult with a knowledgeable financial advisor who is equipped with the CompeteCA(tm) Professional insurance and financial planning software.