Premiums may be made monthly, quarterly, semi-annually or annually by cheque or automatic bank withdrawal. Proof of Insurability - Proving medically that you are qualified to purchase life insurance, i.e. that you are a reasonable risk for the insurer. Reinsurer - Most insurance companies share their risks with reinsurers, i.e. they pay annual premiums to reinsurance companies in return for sharing risk on certain lives. Renewable Insurance - This provision allows the policyholder to renew at the end of each term without having to provide medical proof of insurability. Term Insurance - Least expensive form of insurance but only renewable for specific periods.
Premiums increase at renewal.
Lowest commission to an agent. Underwriting - A process by which a life insurance company examines medical data and determines whether or not it will accept an application for life insurance, and if so, on what basis. The insured accepts more variables, and more risks, with this type of policy. Highest commission to an agent. If you encounter problems with your insurance company you mat contact the Financial institutions Regulation Branch at 945-2542.