dropdead does a lot of volume, and our overhead is extremely low because of a number of factors.

The dropdead platform is very technologically advanced and requires very little human intervention. Our employees work remotely, thereby removing the cost of operating a physical location. We have no expensive brokers on payroll.

This is how we are able to offer such low prices and no expensive commissions. We at dropdead feel very strongly that life insurance should be affordable to every Canadian, and we have made our prices as low as we can go, while still staying in business.

Life insurance can be used for a number of reasons. Below are a few of these, but there are many more:

1. Income Replacement.
2. Paying off a mortgage or a line of credit.
3. Final Expenses.
4. Emergency Fund.
5. Money used to fund your child’s education.
6. Estate preservation and creation.

Learn more on why you should get Life Insurance here. 

Term insurance policies cover the insured for a stated term. The most common type of term policies is Term 10 and Term 20 policies. For example, on these plans, the premiums are fixed for 10 years or 20 years and they rise as you age.

Learn more about Term Life Insurance.

Life insurance is a way of helping your family cope financially when you die. It is intended to provide help to your loved ones when they can’t rely on your salary or income any longer. The payout can be used to clear debts, pay off the mortgage, or just cover everyday expenses. It could even pay for your funeral if you haven’t set anything aside for that.

So long as the information on the initial application is correct there should be no time limit on collecting the claim. The insurance company will need a death certificate and your beneficiary(s) will need to sign a claimant’s statement.

As a general rule you can’t go wrong with 10 times your annual salary. So if you make a 100 grand you need about a million bucks of coverage.

We’ll say it again, this isn’t hard to figure out. Just answer these simple questions, and you’ll have a good idea of how much life insurance coverage you need.

1. What are your debts like? How much is your mortgage? Are you paying off a car loan? A personal loan? If you have debts, you’ll want more life insurance to protect your family.

2. What are your spending habits like? How much do you spend monthly? Try to come up with a list of your everyday expenses. This includes groceries, utility bills, and entertainment. Here’s a quick tip: use your bank statements to estimate your spending.

3. What are your long-term goals? How much money do you need to retire? Are you saving for a getaway home or an RV? How about education for the kids?

4. How much income do your dependents need to maintain their quality of life? This is the big question that takes into account all the previous questions. A very quick and dirty method to determine this is to simply add up your current expenses and any likely future expenses. It’s a little more complicated than this of course (inflation and unexpected expenses are big factors), but it’s a good starting point.

If the above was clear as mud, let us help you out even more so, click on the following link to “Calculate insurance need” to get a better understanding of how much coverage you really need.

Life insurance brokers are generally paid a commission by the insurance company for each policy sold. This cost is built into the premium, so the consumer does not pay any type of surcharge.

Yes, life insurance is available to people who are sick. Depending on the type of illness, the insured may still qualify for traditional life insurance plans that require medical tests and health questions. In truth, it can be difficult to find affordable life insurance if you have a serious pre-existing medical condition. A common cold or illness will not have an adverse effect.

Life insurance policies generally have a two-year contestability period, which means the insurance company can contest the claim for the first two policy years if there is misrepresentation on the application. The insurance company can also contest claims for the life of the policy in the event of fraud.

Regulatory bodies also protection Canadian policyholders. For example, Assuris is the not for profit organization that protects Canadian policyholders if their life insurance company should fail.

In most instances, individual life insurance offers a much better value than mortgage insurance through a lender. Individual life insurance policies provide level coverage, the plan is portable, if you decide to switch homes or move to another bank, and the insurance company allows you to choose your own beneficiary. There are also substantial discounts for non-smokers and people who have a healthy lifestyle. Mortgage insurance through the bank offers declining coverage, the bank is the beneficiary and there are generally no discounts given to non-smokers or people with a healthy lifestyle.

Term insurance premiums start off low, but increase as the insured ages. Term insurance policies do not have a cash value. Whole Life insurance policies have a higher initial premium, but the coverage is level throughout the insured’s lifetime. Whole Life plans can often be paid-up in a limited number of years and have a built-in cash value.

Universal Life insurance is an unbundled form of Permanent Life insurance, which means the life insurance and the investment component are separate. Most insurance companies allow the insured to choose from a wide variety of investment options and the investments can grow on a tax-sheltered basis.

Life insurance death-benefits are tax-free to the beneficiary. If you name your estate as the beneficiary, there is a potential for probate tax.

Most Term life insurance policies do not have a cash value. You can only borrow against the cash value of a policy you can not borrow against the death benefit. The one exception is most life insurance companies will allow the insured to borrow against a death benefit if the insured is diagnosed with a terminal illness i.e. less than 1 year to live.

You would have to contact your insurance company. The address and phone number they can likely change over the phone after they verify your details. The change of name would likely require some type of document to be signed – they would supply you with the form.

Contact us and we will send the necessary form.

Yes – the policy should pay out if you die outside Canada – assuming all questions were answered accurately and suicide was not committed in the first 2 policy years.

Most Term life insurance policies renew automatically. The insurance company would require you to sign a letter to cancel the policy.

Yes, the insurance company will send you a letter notifying you of an increase in rates. Insurance companies also generally notify the broker of record of any major policy changes and he/she should also notify the insured.

We allow for monthly or annual payments.

You can get a copy from us directly by contacting.

Life insurance policies have a 2-year suicide provision so the policy would pay out after 2 years assuming there was no misstatements of fact on any of the application questions.

The amount of time can range from a couple of days to several months. If the insurance company suspects foul play or fraud they will likely write the insured’s doctor(s) for clarification.

Yes, non-smoker rates are significantly less than smoker rates.

This depends on the company. Most life insurance companies would qualify him as a smoker but some companies may not mention Nicorette or nicotine substitutes in terms of their non-smoking declaration. It’s important to check the application wording very carefully.

There has to be an insurable interest and the insured always has to sign the application and answer any necessary health and lifestyle questions.

Most life insurance policies in Canada pay out from day one – except in instances of suicide or if there is meaningful non-disclosure on the application.

Some of the illnesses include a recent diagnosis of cancer, stroke, heart attack, uncontrolled diabetes, high blood pressure or cholesterol. Insurance companies like to see illnesses are stable.

Insuring Canadians age 69 and under is possible.

Sometimes insurance companies view risk differently than applicants. Someone could have had a heart attack a year ago and could feel perfectly healthy but the insurance company may view this health issue differently.

Your health, lifestyle and family history will be among the factors that decide your insurability.

Yes, you can notify the compliance department of the insurance company. You can also notify the appropriate provincial insurance regulator.

While you can usually make amendments to your policy, it might result in additional underwriting and/or higher premiums.

It depends, your employer might offer death-in-service benefit – this pays out a lump sum, usually based on your annual salary if you die while in employment.While it can be a valuable benefit, you might need to take out additional coverage depending on certain factors, such as how much debt obligations you have, as well as any financial provisions for your dependants’ future.

You’ll need to consider exactly what you want it for. Maybe you want to make sure the policy lasts as long as your mortgage repayments. Or perhaps linked to your children’s age, so that it won’t expire until they have finished school, turned 18 years old, or finished university. Of course, your own age will have an impact on your decision.

Yes, it is called T100 insurance. Your family can claim for your policy no matter when you die, unrestricted by a policy term.

Usually, have guaranteed fixed premiums throughout the policy term.

Your premium will vary depending on your health and lifestyle, the type of policy, the size of the sum insured and also the risk of a claim.Also, age is a factor, so life insurance will be more expensive for an older person. Similarly, if a customer is in poor health, they can expect to pay a higher premium.The insurer will take into account occupation, hobbies, lifestyle – such as weight and fitness to help determine their premiums.

It is wise to purchase insurance on everyone in your family as the financial impact will be felt if they died.

It makes sense to buy life insurance as young as possible as older people pay more for their premiums. So in your 20s & 30s rather than your 50s. Improving your health, such as losing weight and giving up smoking, can also reduce your premiums.

Yes, dropdead has licensed brokers that anyone can reach out to for advise. Martin Hutnik is a fully licensed insurance agent that can help assess your needs. Feel free to email him at [email protected]