Life Insurance rates are going up Again!

For those who have been thinking about Life Insurance to protect their Families or their Business, the time is now.

As of September 17th there will be another round of re-pricing of almost all Life Carriers products.

In the last year we have seen a dramatic change in the Life Insurance Landscape, and those who still offer Permanent Life Insurance, will be re-pricing shortly.

Of those Companies, Sun Life, Canada Life, Forresters Life and RBC Insurance will be increasing their cost of Permanent Insurance. It is not known as of yet how much the increases will be, but one thing is for certain, they will be going up.

Many Life Insurance companies, have discontinued Permanent Life Insurance altogether in response to two major changes in the Life Insurance Landscape.

1. Bond rates are at historic lows right now, with no end in sight. The Bank of Canada has stood pat on a 1% interest rate for almost two years now, which has put incredible pressure on Long Term obligations such as Life Insurance.

2. New accounting rules which have been implemented to prevent another Financial Crisis such as 2008 have also put incredible pressure on the pricing of Life Insurance. With the new rules in place, Insurance Companies now have to have far more cash on hand than they ever did before. This is a strange request to have of an Insurance Company, as most of their obligations are long term into the future, but all commitments must be based on today's Low Interest Rate environment.

These two factors alone leave the Insurance Companies with only two options, either stop providing Permanent Insurance altogether, or raise prices to generate more cash on hand for reserves.

So if you have been sitting on the fence, wondering when is a good time to talk about Life Insurance, the answer is Now!

Call our office and let us help you understand the best solutions for your particular situation...

- stef@dgfinancial.ca