Financial Literacy Talks

What Happens to My Life Insurance If I Leave Canada?

pedro@irontrust.ca (Pedro Diaz) — Fri, 13 Jun 2025 20:49:26 GMT

What happens to your insurance if you move

If you're a Canadian planning to move abroad — whether it’s for work, family, or just a change of scenery — you’ve probably wondered: “What happens to my life insurance if I move out of the country?” It’s a smart question. And the good news is, you usually don’t have to cancel your policy. But there are a few important things to keep in mind.

The Short Answer
If you already have a life insurance policy in place before leaving Canada, in most cases it will remain valid — even if you move abroad . Canadian life insurance policies typically follow you wherever you go because the insurance contract is based on your residency and health at the time of application , not where you end up living later on.

So... Can I Just Move and Keep My Policy?
Yes, if:

Your policy is already active
You continue to pay premiums from a Canadian account
You keep your contact and banking info up to date with the insurer

Be careful if:

You’re moving to a high-risk country (e.g. war zones, countries under sanctions)
You let your Canadian banking or contact information lapse

In most standard cases, your policy continues as long as you keep up your payments and your insurer has a way to stay in touch.

What About Claims?
If you pass away while living overseas, your Canadian life insurance policy can still pay out. However, your beneficiary may need to provide:

An official death certificate from the local authority
A certified English translation (if applicable)
Additional documents, depending on the country

This doesn’t stop the claim from being processed, but it might slow things down slightly due to extra verification steps.

Pro Tip: Let Your Insurer Know
It’s a good idea to inform your insurance provider if you’re planning to move abroad. This helps them:

Keep your file and contact details current
Avoid billing issues or lapsed coverage
Be prepared in case a claim ever needs to be processed from outside Canada

Final Thoughts
Moving abroad doesn’t mean your life insurance disappears. As long as your policy is in good standing, it can continue to protect your loved ones even if you’re living on the other side of the world. A quick conversation with your advisor can help ensure that everything stays on track — no matter where life takes you.

Why Term Life Insurance Might Be the Smartest Choice for Most Canadians

pedro@irontrust.ca (Pedro Diaz) — Fri, 13 Jun 2025 20:39:34 GMT

Understanding Term Insurance

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¿Por qué hay tantas reseñas negativas sobre las compañías de seguros de vida?

pedro@irontrust.ca (Pedro Diaz) — Wed, 26 Jun 2024 13:42:06 GMT

Entendiendo la razón de muchas reseñas malas.

En la era digital, es común encontrar reseñas en línea sobre casi cualquier producto o servicio, y las compañías de seguros de vida no son una excepción. Sin embargo, una tendencia preocupante es la cantidad de reseñas negativas que estas empresas reciben. ¿Por qué sucede esto? Aquí exploramos algunas de las razones principales detrás de estas críticas.

1. Confusión entre seguros de vida y beneficios grupales

Una de las razones más comunes por las cuales las compañías de seguros de vida reciben reseñas negativas es la confusión entre los seguros de vida individuales y los beneficios grupales. Muchos clientes no entienden que los departamentos que manejan los reclamos de seguros de vida son diferentes de los que se ocupan de los beneficios grupales, como el seguro de salud proporcionado por el empleador.

Los beneficios grupales suelen ser gestionados por departamentos específicos que tienen sus propios procesos y tiempos de respuesta. Cuando los clientes tienen una mala experiencia con sus beneficios grupales, a menudo atribuyen esta frustración a la compañía de seguros de vida en general, sin darse cuenta de que se trata de áreas completamente separadas dentro de la misma empresa.

2. Problemas con los asesores y corredores

Otra razón significativa para las reseñas negativas es el comportamiento de los asesores y corredores de seguros. Estos intermediarios son la cara visible de la compañía para muchos clientes, y cuando actúan de manera poco ética o incompetente, los clientes tienden a culpar a la compañía de seguros en su totalidad.

Es importante destacar que la mayoría de los corredores son independientes y no son empleados de las compañías de seguros. Trabajan como intermediarios entre la compañía de seguros y el cliente, representando una variedad de compañías y productos. Debido a esta independencia, sus prácticas y niveles de servicio pueden variar considerablemente. Si un corredor no explica adecuadamente los términos de una póliza, no responde a las consultas de los clientes o no gestiona correctamente la documentación, estos problemas pueden causar una gran frustración. En estos casos, los clientes pueden dejar reseñas negativas en línea como una forma de desahogo, utilizando a la compañía de seguros como chivo expiatorio por las malas prácticas de sus representantes.

3. Expectativas no cumplidas

Las pólizas de seguro de vida pueden ser complejas, y las expectativas de los clientes a menudo no se alinean con la realidad de lo que estas pólizas pueden ofrecer. Las personas pueden esperar que su seguro de vida cubra ciertas eventualidades o proporcione beneficios que no están realmente incluidos en su póliza. Esta discrepancia puede llevar a la decepción y a la consiguiente reseña negativa.

A veces, estas expectativas se generan a partir de información leída en línea de fuentes no verificadas, o sobre productos completamente diferentes. Otras veces, se deben a la representación errónea o exagerada por parte de un corredor. La abundancia de información en internet, que no siempre es precisa, puede llevar a malentendidos sobre lo que realmente cubre una póliza de seguro de vida. Es crucial que los clientes verifiquen la información y se aseguren de entender completamente los términos de su póliza para evitar futuras decepciones.

4. Proceso de reclamos

El proceso de reclamos en las compañías de seguros de vida implica estrictos procedimientos y la validación de documentos. Aunque estas medidas son necesarias para prevenir fraudes y asegurar que los reclamos sean legítimos, muchos beneficiarios esperan "simplemente recibir el pago" y que las compañías "simplemente les crean". Esta expectativa poco realista puede llevar a la frustración cuando los beneficiarios descubren que necesitan proporcionar documentación y seguir procedimientos específicos para que su reclamo sea aprobado.

5. Reseñas falsas

Desafortunadamente, algunas personas simplemente odian a las compañías de seguros, aunque nunca hayan tenido una experiencia directa con ellas. Este odio infundado puede motivar a algunos a escribir reseñas falsas, simplemente por el deseo de dañar la reputación de la empresa.

¿Cómo sabemos que son reseñas falsas? Porque algunos de los detalles en estas reseñas son inconsistentes con las directrices y procedimientos reales de la industria. Muchos de estos detalles pueden pasar desapercibidos para los consumidores que no están familiarizados con los procedimientos o directrices de seguros, pero los expertos en la industria pueden identificarlos fácilmente. Estas reseñas falsas contribuyen a una percepción negativa injusta y pueden dificultar que los consumidores tomen decisiones informadas.

Conclusión

Es crucial para los consumidores entender que las reseñas negativas no siempre reflejan la calidad total del servicio de una compañía de seguros de vida. Muchas de estas críticas se deben a malentendidos, problemas con intermediarios, expectativas no realistas y, en algunos casos, a reseñas falsas. Sin embargo, las compañías de seguros también deben tomar estas reseñas en serio y trabajar para mejorar la comunicación y el servicio al cliente en todas sus áreas.

Al final del día, una mejor comprensión de cómo funcionan las diferentes partes de una compañía de seguros de vida puede ayudar a reducir las críticas injustas y mejorar la experiencia general del cliente.

How does smoking affect your life insurance rates?

pedro@irontrust.ca (Pedro Diaz) — Tue, 21 Feb 2023 18:28:55 GMT

Smoking and life insurance premiums

Smoking is a leading cause of preventable deaths in Canada, with an estimated 45,000 Canadians dying from smoking-related illnesses each year. The use of tobacco products, including cigarettes, cigars, and pipes, is associated with a higher risk of developing chronic health conditions such as cancer, heart disease, and lung disease. Smoking can also impact life insurance rates in Canada, with smokers typically paying higher premiums compared to non-smokers.

Life insurance companies in Canada typically classify individuals into two categories: non-smokers and smokers. The rates for these two categories are different, as smokers are considered to have a higher risk of developing smoking-related illnesses. Life insurance rates for smokers are typically higher than those for non-smokers due to this increased risk.

The exact rates for smokers and non-smokers will vary by insurance company and the individual's age, health status, and other risk factors. However, it is important to note that smoking can significantly impact life insurance rates, particularly for long-term policies.

For example, a 40-year-old non-smoker seeking a 20-year term life insurance policy in Canada may pay between $25 and $50 per month for $250,000 in coverage. However, a smoker of the same age and coverage may pay between $70 and $120 per month for the same policy.

There are several types of life insurance products in Canada, including term life insurance, permanent life insurance, and universal life insurance. Term life insurance is typically the most affordable option and provides coverage for a specific period of time, while permanent life insurance provides coverage for the entire life of the policyholder. Universal life insurance is a combination of both term and permanent life insurance.

It is important to note that smoking can impact not only the rates for life insurance but also for other types of insurance, such as disability insurance and critical illness insurance. These types of insurance products provide coverage for unexpected events such as illness or injury that may prevent the policyholder from working and earning an income.

In summary, smoking can significantly impact life insurance rates in Canada, with smokers typically paying higher premiums compared to non-smokers. The rates for these two categories will vary by insurance company and the individual's age, health status, and other risk factors. If you are a smoker, it is important to speak with a licensed insurance agent to explore your options and find the best life insurance product for your needs and budget.

If you'd like to discuss your life insurance options, fell free to schedule a cal below

Is it better to just buy Life Insurance Online?

pedro@irontrust.ca (Pedro Diaz) — Fri, 17 Feb 2023 21:38:45 GMT

Sometimes convenience is not worth it

Life insurance is an important financial tool that provides peace of mind and security to individuals and their families in the event of an unexpected death. However, purchasing life insurance can be a complex and confusing process, which is why it is important to work with a life insurance advisor rather than buying life insurance online.

There are several reasons why working with a life insurance advisor is important. First, a life insurance advisor has the knowledge and expertise to help you select the right type and amount of coverage for your unique needs. They can provide guidance on the different types of policies available, such as term life, whole life, and universal life, and help you choose the one that best fits your financial goals and family situation.

Furthermore, a life insurance advisor can help you navigate the underwriting process. This process involves the insurance company evaluating your risk profile and determining your premium rate based on factors such as your age, health, and lifestyle. A life insurance advisor can provide valuable guidance on how to improve your risk profile, such as quitting smoking or losing weight, which can lead to a lower premium rate.

In addition to helping you select the right coverage and navigate the underwriting process, a life insurance advisor can also provide ongoing support and advice. They can review your coverage periodically to ensure it still meets your needs and adjust it as necessary. They can also assist with any claims that may arise, ensuring that the process is as smooth and stress-free as possible.

Another advantage of working with a life insurance advisor is that they can help you save money in the long run. While purchasing life insurance online may seem like a quick and easy way to get coverage, it may not be the most cost-effective option. A life insurance advisor can help you compare policies from different companies and find the one that offers the best value for your money.

Finally, working with a life insurance advisor can provide peace of mind. By working with a knowledgeable and trustworthy advisor, you can be confident that you are making the right decisions for yourself and your family. You can rest assured that you have the coverage you need to protect your loved ones in the event of your unexpected death.

In conclusion, purchasing life insurance is an important decision that requires careful consideration. While buying life insurance online may seem like a convenient option, it is important to work with a life insurance advisor to ensure that you get the right coverage for your needs. By working with an advisor, you can get expert guidance, save money, and have the peace of mind that comes with knowing you have the right protection in place.

We can help you get the right insurance for your specific situation. Just schedule a call with us using the link below:

Myths and Realities of No Medical Life Insurace

pedro@irontrust.ca (Pedro Diaz) — Tue, 06 Dec 2022 02:18:41 GMT

Exploring some of the myths of no medical life insurance

If you are currently in the process of shopping for life insurance, you may have come across the term no medical life insurance and might be wondering what the difference between no medical life insurance and traditional life insurance is.

Simply put, no medical life insurance means an insurance application for which you do not have to do any medical tests. By medical tests, I mean blood test, urine tests, vitals, or ECG's. Although we won't get into the discussion of different types of insurance applications on this post we wanted to just mention some of the myths that have that we have heard over time regarding no medical life insurance.

Myth #1: no medical insurance means no medical information is be being asked.

Reality: Medical insurance means that there are no actual physical medical exams being done to assess the application. However that doesn't mean that there are no medical questions in fact that is the only way that the company can accurately assess the risk when underwriting and insurance application. Although questions are worded very differently on a simplified application versus a traditional application, there would still be medical questions needed to be answered in order to qualify for coverage.

Myth #2: n o medical insurance doesn't cover as much as regular insurance.

Reality: as mentioned in other posts, life insurance covers the death of the insured person. If someone has a $500,000 in coverage, whether it be a no medical policy or a fully underwritten policy, the actual type of coverage does not change. There are no additional exclusions, no additional fine print, and no additional terms and conditions when compared to a traditional policy.

Myth #3: no medical insurance has no underwriting.

Reality: medical underwriting is the process through which an insurance company determines the amount of risk that an applicant represents when they are applying for coverage. No medical policies still have to be underwritten and, even though there are no medical exams, people can still be declined for insurance coverage. Just because there are no medical tests does not mean that the insurance company will not check and verify that the answers given during the application are true and accurate.

Myth #4: no medical policies are underwritten at the time of claim.

Reality: this is simply just false. We have to make sure that we do not confuse no medical policies with creditor insurance coverage like the ones issued by banks and lending institutions. Any life insurance policy that you purchase through a licensed insurance advisor (not a bank or a mortgage broker) is underwritten at the time of application, not at the time of claim.

Myth #5: no medical insurance has a waiting period.

Reality: Although there are some insurance products that do offer a deferred coverage, this is not the standard for no medical policies. Unless your policy or contract specifically says that it is a deferred policy, there are no waiting periods when it comes to life insurance. Your insurance coverage will always begin on the date that your application is approved.

If you would like to learn more about the differences between no medical insurance, traditional insurance, simplified insurance or guaranteed acceptance feel free to schedule a call.

Term Life Insurance vs Mortgage Protection Insurance

pedro@irontrust.ca (Pedro Diaz) — Tue, 19 Jul 2022 18:07:07 GMT

Comparing the two. Which one is better?

For many people, their home is their most valuable asset. Protecting that asset with term life insurance can make sense for a number of reasons. Mortgage protection insurance is another option that can provide peace of mind in the event of your death. So, which is right for you? Here's a look at the pros and cons of each.

Term life insurance is a type of life insurance that provides financial protection for a set period of time, usually 10-30 years. If the policyholder dies during the term, the beneficiaries receive a death benefit. Term life insurance is generally less expensive than other types of life insurance, making it a good option for people on a budget.

Mortgage life insurance is a type of policy that is taken out by the borrower and pays off the outstanding balance on the mortgage in the event of the borrower's death. While this may sound like a good idea, there are actually several reasons why mortgage life insurance is not a good idea.

First of all, term life insurance policies are much cheaper than mortgage life insurance policies and provide more comprehensive coverage. If you do die while you have mortgage life insurance, your beneficiaries will not receive the full value of your policy. They will only receive enough money to pay off your mortgage. For example, if you started with a $500,000 mortgage balance but you die when the mortgage balance is only $200,000, that is all that the policy will cover. Term life insurance policies will pay the entire $500,000 benefit in this case.

Secondly, term life insurance pays the death benefit to your designated beneficiary. However, mortgage life insurance will pay the benefit to the bank. While your mortgage may be paid off, mortgage life insurance will leave your family without additional funds for other expenses they may incur.

Thirdly, mortgage life insurance is tied to your lender and mortgage. If you ever plan to switch lenders, or even refinance, you will have to apply for coverage again. That might not sound too bad in theory but the reality is that mortgage life insurance premiums are based on the lenders age. The older you are, the higher the premiums will be. So if you are looking to refinance your mortgage a few years down the line, you can be certain that the premiums will be more expensive. With term life insurance, the policy is not tied to your bank or mortgage. The coverage, and premiums, will remain the same whether you change lenders, refinance, or even pay off your mortgage sooner.

Lastly, mortgage life insurance is underwritten at time of death, also called "post-claim" underwriting. That means that your eligibility for coverage is determined only after you have died. At this point, it is very easy for the lender to deny the claim. With term life insurance, the underwriting is completed before the policy is issued. If there are any issues regarding your eligibility, you will know before you even have to pay for any premiums. However, once the policy is issued and the premium paid, you can rest assured that your coverage is secure. This adds an extra layer of peace of mind that mortgage life insurance simply does not offer.

Term life insurance is one of the most affordable types of life insurance, making it a good choice for people on a budget. It is also one of the most straightforward types of life insurance, which can make it easier to understand and compare different policies. In addition, term life insurance can be a good choice for people who are not looking for lifelong coverage, such as those who are close to retirement age. term life insurance can provide peace of mind by knowing that your loved ones will be taken care of financially if you die prematurely.

I hope this article has been helpful in explaining the differences between term life insurance and mortgage protection insurance. If you have any questions, please let me know. I would also be happy to provide you with an instant quote so that you can find the best policy for your needs.

Disability VS Critical Illness Insurance, what's the difference?

Tue, 21 Jul 2020 17:24:44 GMT

Understanding how each type of insurance works

Often, people confuse or do not understand the differences between disability and critical illness coverage or they use it interchangeably. When asking a client about critical illness insurance, I have heard several times "I already have disability insurance". So to learn about what is type of coverage is, what it covers and how it works, let's explore each type of insurance.

What is disability insurance?

Disability insurance is a type of policy that protects someone from a loss of income due to sickness or injury. In other words, it is insurance that pays you if you are unable to work due to an injury or illness. Disability is paid out as a monthly benefit , which represents a percentage of your income.

The key determining factor at the time of a claim is whether you are able to work or not. Disability insurance is less concerned with "what you have" and more concerned with "can you work" . The reason behind this is because having a particular condition or injury may only prevent you from working depending on the type of occupation that you have.

For example, let's compare the following two occupations, a mail courier and a software developer. A courir has to rely on their ability to drive and also involves a lot of walking. On the other hand, a software developer might spend 95% of their time sitting on a desk using a computer.

So let's assume they both have an accident in which they lose the use of their legs. In the case of the mail courir, they would be considered disabled because the inability to walk and drive prevents them from performing the main duties of their occupation. On the other hand, because the software developer just needs to sit and work on a computer, the injury they sustained would not prevent them from performing the duties of their regular occupation.

Different conditions or injuries can affect different occupations in many different ways, therefore, just "having something" would not automatically mean that someone would qualify for disability insurance. Of course, there is one exception with something called presumptive disability . Presumptive disability means that the company will assume that you are disabled, and pay a full benefit, regardless of your ability to work if you lose any of the following: sight in both eyes, hearing in both ears, use of two limbs.

Another aspect of disability insurance is that the amount of coverage a person would qualify for is based on their proven income . Normally if a person is not working, for example a stay-at-home parent, would not be able to When underwriting a new policy, a life insurance company would not allow a person to get more than they can qualify for. The maximum amount of coverage usually works out to be about 85% of the after-tax income of the person.

One more thing about disability insurance is that most plans offer coverage only until per insured person reaches the age of 65 and continues to work.

What is critical illness insurance?

Critical Illness insurance is a type of policy that protects some if they are diagnosed with one of the 25 listed conditions , with the four making up 90% of claims being cancer, heart attack, stoke or coronary bypass surgery. Critical illness benefit is paid out as a lump sum.

Critical illness insurance is not concerned about the employment situation of an individual, but rather with "what you have" being one of the 25 listed conditions. Critical illness insurance benefits are paid out strictly on your diagnosis even if you never stop working.

For example, a person who purchased a $50,000 critical illness insurance policy, would receive a tax-free lump sum payment of $50,000 if they were diagnosed with cancer.

Critical illness insurance is not concerned about how much income someone makes. So even a stay-at-home parent or child can qualify and claim for critical illness insurance.

Since we have universal healthcare in Canada, you probably wonder why someone would need critical illness protection. Critical illness protection allows someone to cover the gap for expenses that might not be covered by healthcare. For example, expensive drugs or home modifications required because of a diagnosis. However, where critical illness really fits in, is in the flexibility that it provides. Once receiving a lump sum payment, the insured person can use the funds to make a lump sum payment of their debts, or use the funds to cover the income of a significant other or family member if they need to take time off work to take care of the sick person.

Final comparison

Both disability and critical illness insurance, protect the insured person under different circumstances. It is important to understand your specific situation to assess which combination of coverage is better for you.

A very costly mistake

pedro@irontrust.ca (Pedro Diaz) — Fri, 18 Jan 2019 20:25:12 GMT

Overlooking beneficiaries could cost you thousands

Have you named beneficiaries on your RRSPs?

A very common mistake that can cost your family a lot of money is failing to name a beneficiary or improperly choosing a beneficiary on your RRSPs (Registered Retirement Savings Plans).

What is a beneficiary?

A beneficiary is any person or organization that receives assets from a person after that person’s death.

Failing to name a beneficiary can cost your family thousands of dollars in taxes. Unfortunately, I have personally found that in many cases when people set up an RRSP account at a bank or through an employer plan (Group RRSP) companies automatically designate the Estate as the beneficiary, and this will commonly overlooked in the future.

How are RRSPs taxed at death?

The general rule is when a RRSP account holder dies, the entire market value of the account, on the day of the death, is taxed 100% as income for that year.

For example

John passed away in 2018. He year and had a RRSP with a market value of $350,000.

The total taxable income for John’s estate for 2018 will be $350,000 (assuming he did not earn any other income)

The tax payable in 2018 (Ontario and Federal combined) for $350,000 of income would be $149,359

Three exceptions to the rule

There are three major exception in which John would be able to defer paying taxes on his RRSP balance if he named a beneficiary

· A spouse

· A financially dependent child under the age of 18

· A financially dependent child or grandchild with a mental or physical disability.

In the example above, if John had overlooked naming his spouse as the beneficiary, his estate would owe the CRA $149,359 in income taxes and then it would have incurred additional probate and executor fees.

However, because John names his spouse as the beneficiary, the spouse can roll the entire $350,000 into her RRSP without paying any tax to the CRA and avoiding probate fees.

A simple mistake that is easy to overlook, could have cost John over $150,000 when probate fees are factored in.

What to do if you're not sure?

If you’re not sure who you named as your beneficiary, or if you named one at all, this RRSP season is the best time to review it.

“You can lead a hose to the water, but you cannot make him drink”

Thu, 23 Aug 2018 17:36:45 GMT

What’s really holding you back?

Many times, I've been faced with this:

HIM: "If something happens to my wife, I'll get $1M to take care of the mortgage and the kids"
But when I ask, "well how about if something happens to you?"
HIM: "Well, that's their problem"

This is something I face every day as a financial advisor. You get to see the true colours of some people.
Why should I have to convince you that you need life insurance? That is not my job. Life insurance is a tool that allows you to provide financial security for your family if one day you didn’t come home.

Wanting to be able to provide for your family should be an innate value. It’s not something that I can convince you of. But I can help you find the best solution for your situation and budget.

When $500,000 of protection for your family is only $17.37 a month for a 35-year-old, what’s really holding you back?

I just don’t ever want to see you be GoFundMe Facebook post that I see every month struggling to collect $10,000 because “he left his family with nothing”

If you want to learn how you can protect your family, you can get a quote here