Rather than risk leaving your family with a stack of bills to pay after you pass away, a life insurance policy can ensure that they are adequately covered financially. This is especially helpful if you still have dependents in the home who continue to rely on you and your income to pay the bills, especially big ones like your mortgage.
Life insurance policies are available from a variety of sources in Canada, including Equitable Life, one of the largest mutual companies in the country. The company has been around since 1920, providing a variety of financial, wealth, and insurance products and services to Canadians.
With a long track record in the insurance industry, Equitable Life has plenty of experience and knowledge when it comes to finding the ideal solutions for individuals and businesses. And since the company is owned by policyholders rather than shareholders, clients can rest assured knowing that their best interests are always top of mind.
Types Of Life Insurance Equitable Life Offers
Equitable Life offers a wide array of life insurance products, including term life, whole life, universal life, and critical illness insurance.
Term Life Insurance
Term life insurance is designed to last for a certain length of time and is not meant to provide lifelong coverage. Policyholders can choose which term they’d like based on their needs and budget.
Premiums are guaranteed for that specific term, and once the term expires, the policy will either end or will renew at a higher premium. Most term life insurance policies can be converted into a permanent policy to cover long-term needs.
This type of policy is a more affordable option than permanent life insurance because it still offers coverage during a person’s working years where there are big bills to be fully repaid.
Term life insurance is also great for Canadians who may have kids at home and want to ensure that they have enough money to cover the cost of post-secondary education, or to provide enough money to help them get a head start in life. These policies can also ensure that the family can still maintain the same lifestyle without having to make major sacrifices after the policyholder passes away.
Equitable Life offers the following term life insurance policies:
- 10-Year Term. This is the most affordable policy that offers coverage for 10 years, with premiums renewing every 10 years up to the age of 85 years.
- 20-Year Term. Coverage lasts 20 years, with premiums renewing every 20 years up to the age of 85 years.
- Term 30/65. Coverage lasts 30 years, and premiums are payable up to 30 years or up to age 65, whichever comes first. There are no premium increases.
Whole Life Insurance
Unlike term policies, a whole life insurance policy is meant to provide lifelong coverage that never expires, no matter how long you live. As long as the premiums are up-to-date, coverage will never cease. Your beneficiaries will receive a death benefit when you pass away, which will be free of taxation.
Equitable Life offers Equimax whole life insurance, which provides permanent coverage with guaranteed premiums. In addition to the death benefit, there is also a cash value component, which can be accessed at any time to cover the cost of things like post-secondary education, home renovations, or retirement income. Just be aware that any funds that are tapped into will reduce the policy’s cash value.
With whole life insurance, not only can you ensure coverage for your family in the event of your passing, but you can also use the policy as a way to build wealth over time. As such, the plan can be seen as both a life insurance policy and an investment plan.
Universal Life Insurance
A universal life insurance policy is a type of permanent coverage that comes with an investment savings component along with low premiums. Under the terms of this type of policy, any premium payments that are above the current cost of the plan are contributed to the cash value of the policy, plus interest. That way, you can use your policy as a way to ensure financial coverage for your family while building the cash value investment portion of your plan.
Equitable Life offers Equation Generation IV universal life insurance, which is designed for those looking for a cost-effective policy that ensures financial coverage for loved ones and comes with a tax-advantaged investment opportunity. There are 2 types of plans that fall under this category:
- Equation Generation IV with Bonus – This plan features a bonus and guaranteed investment bonus, no matter how the market performs or what the rates of returns may be.
- Equation Generation IV Low Fees – This plan features a bonus and lower fees that help maximize the return on your investment.
Critical Illness Insurance
If you are ever diagnosed with a critical illness that forces you to stay home from work, your income can quickly diminish. Rather than suffering financially, a critical illness insurance policy can kick in to help out.
Equitable Life offers EquiLiving, a critical illness insurance plan that pays out a lump-sum benefit in the event of a critical illness diagnosis. The benefit payment can be used in any way you want, including to pay bills or to cover the cost of therapies and treatments.
You can add EquiLiving critical illness insurance to a term, whole life, or universal life insurance plan through Equitable Life to provide more comprehensive coverage.
Pros Of Equitable Life Insurance
Policy rates are relatively affordable compared to other Canadian life insurance companies, particularly for those who are younger when they first take out a policy.
Policyholders have the option to bundle coverage with critical illness and other life riders to create a more customized plan.
Term Policies Can Be Converted To Permanent Plans
If you have a term policy in place, you can choose to convert to a permanent policy, no matter what your current health status may be.
Get access to your policy directly through the Equitable Life website online.
Financial And Wealth-Building Products
Since Equitable Life is also a financial and wealth advisor, you can get all your financial needs taken care of in one spot.
Equitable Life has been in the industry for over 100 years, during which time it has exhibited financial stability.
Cons Of Equitable Life Insurance
Term policies only come in limited-term lengths of 10, 20, and 30-years.
No Other Insurance Plans
Only life insurance is offered through Equitable Life. Other types — such as auto or home insurance — are unavailable.
No Electronic Policy
There are no paper policies offered; only electronic policies are available.
Overview Of Term Life Insurance Through Equitable Life
|Max Coverage||$10 million|
|Term||10-, 20, and 30-year terms|
|Optional Riders||-Children’s protection rider-Guaranteed insurability option-Disability waiver of premium provision-Accidental death benefit-EquiLiving critical illness insurance|
Cost Of Life Insurance With Equitable Life
There are several key factors that are assessed by life insurance companies like Equitable Life to arrive at a price for a plan, including the following:
- Family health history
All these factors contribute to a person’s risk level. For instance, an older person who smokes and is in poor health would be a higher risk for an insurance provider than a younger non-smoker in good health. That’s because the older person has a higher risk of dying sooner.
The higher the perceived risk for the insurance provider, the more expensive the insurance policy will be.
To give you an idea of how much you could pay for life insurance through Equitable Life, consider the premiums associated with a 20-year, $500,000 term policy for non-smokers:
Receiving The Death Benefit
A death benefit will be paid out to your named beneficiaries in the event of your passing, as long as your policy is still active and you’ve paid your premiums on time. Your family will have to submit a few pieces of information to Equitable Life when filing a claim, including a copy of the death certificate. Once all information has been provided, your family will be paid out a tax-free death benefit in one lump sum.
If you are filing a claim after being diagnosed with a critical illness, you’ll need to supply information related to your diagnosis, including the condition and when you were diagnosed. If the claim is successful, you will be paid out a lump sum payment as promised according to your policy contract.
Equitable Life Insurance Application Process
To apply for a life insurance policy with Equitable Life, you’ll need to either call an agent directly with the company at 1-800-722-6615, or speak with an independent insurance advisor who can help you apply for a policy.
When you apply, you’ll need to provide detailed information about yourself, including your health, family health history, whether or not you smoke, and your job.
Depending on the type of policy you apply for, you may also need to participate in a medical examination to verify your health status, though you may be able to avoid a physical exam for certain policy types.
Having a life insurance policy is a good way to ensure that your family is not left in a difficult financial situation after you pass away, especially if your life ends short. Equitable Life offers several plans and optional riders that you can purchase to provide the right type of coverage for you and your family at a price point you can afford.