Canada as we believe it, is the only country that offers consumers the ability to purchase Term to 100 or Level Life Insurance coverage. Most every other country only offers Term Insurance such as as Term10, 20 or renewable adjustable Term Insurance. This means that we are the only country that will guarantee a death benefit in the future for a guaranteed monthly cost today, all other types of Term Insurance bet on the event of death happening within the term, but as we all know death is a certainty and should be prepared for accordingly.

While it is true that Term Insurance is much more cost effective than permanent insurance, your Insurance foundation should be built with Permanent Insurance, and complimented with Term Insurance, instead of the other way around. This way you are able to get the most cost effective solution, but have options of conversion later on in both your, and the Insurance Contracts life.

Here is the main point though, because of Guaranteed Insurance contracts here in Canada, the costs are going up! Surprise Surprise right? One of the main parts of an Insurance Company's portfolios are long term bonds. It makes sense for an insurance company to purchase long term bonds, based on your mortality or how many years you will live. But over the last three years bond rates have fallen off dramatically. Due to the near zero Bank of Canada rate, as well as the US treasury committing to no interest rate increases until at least 2013 we are challenged to find a bond rate of even 10 years paying any more than 3%...

This puts incredible pressure on Insurance Companies to fund the future obligations of the policy holders, so in turn, rates must go up to cover the loss on bonds. Most all insurers last year increased their prices by nearly 10%, and we are now in the second round of repricing for the new policies coming onto the books.

"We led the first round [of increases last year] and we are leading this round," said Paul Smith, vice-president of marketing and product development at Manulife Financial about the bump due Oct. 15, which will see premiums rise as much as 12%.

Now while Manulife is usually the first insurer to historically raise their rates, nearly all will follow shortly behind. So if you have been sitting on the fence on whether to worry about insurance today, or make it a new years decision, smart money says that a decision sooner than later will end up saving you thousands of dollars over the life of the contract.

Call our office today, and let us help you build a foundation of Insurance that will not only protect you today, but far into the future.

Steffen deGraaf