Standard Life Assurance: Policy Review

Let me present to you several Canada’s life insurers in a few short articles, and I will commence with Standard Life. In particular, I will talk about the company’s Universal and Term Life plans.

Applicants up to 80 years of age are eligible for Standard Life’s Universal Life. Perspecta - as the policyis being traded - has many intriguing features to offer, among which are the following: multiple death benefit, flexible monthly premiums as well as cost of insurance options.

Clients’ premiums are going to be invested in actively managed accounts, indexed accounts, term deposits and an account with interest compounded daily. The policy also features an Account Optimizer and Shelter Optimizer that help safeguard the investment interest’s tax-exempt status. When the policy matures, the so-called client bonus payments kick in to boost cash creation even further.

You can add the following add-ons (and more) to the policy: 10 and 20-year term riders which are renewable and convertible, children’s term riders, critical illness riders for adults, as well as children, accidental death benefit, guaranteed insurability benefit and a waiver of fees in case of disability of the insured.

To be completely fair, Standard Life Assurance (which used to have some of the best priced Universal Life plans out there) came with a rate increase on all of its policies in 2005. Now, certain age groups will be prompted to switch to other insurance providers because of this rate increase. This, however, is offset by their preferred rates, offered to clients with exceptional personal and family health history.

For example, a 45-year-old non-smoker male applicant applying for $250,000 of Universal Life coverage is going to pay a minimum premium (i.e., the premium to keep the plan in force) of $211.95 a month.

Standard Life sells two term insurance policies in its portfolio - Term 10 and Term 20. Both plans can be applied for from age 18, and you can sign up for the Term 10 plan up to 70 years of age. For Term 20, the maximum starting age is 65 years of age. The plans are renewable up to age 85, but one can convert them no later than age 65. As the Universal Life policy, the Term plans allow clients to add a variety of complementary riders.

Standard Life’s term life plans are available on an individual or joint first-to-die basis.

Individuals who are in good enough health and have a good family health history may qualify for preferred rates. If you are lucky to be in particularly exceptional health, you could get a super-preferred rate from Standard Life. If you are looking to make use those benefits, you are warned that $100,000 is the smallest face amount you can purchase. If you do not have enough discretionary income, this fact may become a major issue.

What is more, Standard Life will not insure you without a medical examination (so called 'guaranteed issue' or 'no medical' life insurance). They do, however, offer the guaranteed insurability benefit/rider on their Whole Life policies.