Don't buy Life Insurance where you buy Tires...deGraaf Financial Services

Do you want to buy Life Insurance where you buy Tires?

Published December 13, 2011 | By Stef

Is Life Insurance as valuable to Canadians as Snow Tires are? You bet it is. Do you want to buy them at the same place at the same time? Absolutely NOT!

Recently I was intrigued by the new offering from Canadian Tire, a retail store I admire, to be able to purchase Life Insurance from them as well.

Canadian Tire Life Insurance, really? Although Canadian Tire Life Insurance, is really only privately labeled Life Insurance from Canada Life, the thought of using a hardware store to protect my family's financial future seemed more than odd. I did a little research and here is what I found.

1. Canadian Tire Life Insurance is available with no medical questions (well, minimal medical questions). When I think of my family's financial future being secured by only a few medical questions, I do not have a lot of faith in claims time. If they don't ask the medical questions when I am applying for the Life Insurance, when do they ask them? Upon death... This leaves your family in jeopardy of the coverage not paying out.

2. Canadian Tire Life Insurance is 5 year Renewable Term Insurance. This means that every 5 years the cost of the Life Insurance increases. This is the worst type of Term Insurance you can buy, because every year that you get closer to your mortality age (the age you are most likely to die at) the Life Insurance becomes more and more expensive. By the time you near the age of when you will need it, you will more than likely have cancelled it because of the skyrocketing premiums you must pay on a monthly basis.

3. Canadian Tire Life Insurance cost is so expensive, you will end up paying more than double for the same coverage at one of Canada's top Life Insurer's. For a $250,000 policy from Canadian Tire Financial Services for a 50 year old male who does not smoke will cost over $100.00 per month Guaranteed cost for only 5 years. The same policy for a 10 year rate Guarantee from Empire Life only costs $44 per month. That is a lot of money you pay extra to Canadian Tire Financial to run the fancy TV ads you will see.

4. The plan is not convertible... This means that the premiums will continue to go up and up, with no ability to lock in the future costs. This becomes very dangerous for older Canadians who would like to know the future costs of Life Insurance. The problem with Term Life Insurance, is that at every renewal period (5 Years) the cost keeps going up and up, and you will more than likely end up cancelling your coverage because the cost of the Life Insurance will be too much to handle in your later years. Leaving all the money that you have ever invested in the program behind.

Although I do love Canadian Tire and their patio furniture and power tools, it is wrong to have such a prominent Canadian Company use their marketing machine to try and convince people of the value of their Life Insurance program. With the help of an unbiased Life Insurance Broker, we will work with you to provide the best solution at the best price for your family's financial future.

Call us today to see how Brokers are Better...

Steffen deGraaf