SISIP Life insurance is there a better choice?

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Better Insurance Then SISIP? Maybe!

Post by Hoss on Tue 15 Apr 2014, 21:51

Hello everyone.  I was with the military for 16 years. I was medically released and I am now a financial advisor with a well known Financial Company.  Is there better insurance out there... possibly... is SISIP insurance good at what it's supposed to do yes it will pay out in the event of a death.  But let me explain.  SISIP is 5 year term that means that every 5 years it gets more expensive.  Coverage ends on your 75th birthday, leaving you with no insurance.  If your health changes you may not qualify for coverage from another company for coverage after age 75.  Also purchasing insurance at age 75 is extremely costly!  You do not have any options for estate preservation or legacy with this type of insurance.  My biggest complaint is that you can not convert it to any other type of permanent insurance.  Also your limited in the amount of coverage.  Many people require much more then the maximum allowed. Sure you can go and purchase another policy from another company but then your are paying for 2 policy fees.  Everyone has final expenses upon death. If you live to age 75 + 1 day your out of luck with SISIP! your loved ones or estate will be paying for it.  You can look at the cost for say 400,000 of coverage. Lets also say your age 40, female and non smoker.  remember every 5 years your cost goes up.  I got current rates from the sisip website and will put a link at the bottom of the post. So for the example above you pay 1.05 per (10k of life insurance )x40  x number of months (5 year term ) x60  

age 40-44   1.05 x 40 x 60 = 2520 or 42.00 a month
age 45-49   1.35 x 40 x 60 = 3240 or 54.00 a month
age 50-54   2.00 x 40 x 60 = 4800 or 80.00 a month
age 55-59   3.40 x 40 x 60 = 8160 or 136.00 a month
total for 20 years is $18720.00

I took the prices for Sun Life Insurance a term 20 is 41.49 a month or $9957.60  saving <$8,762.40>
I would also like to note that for a term 10 it was $28.17 a month for this example not making SISIP cheaper.

Next example a 55 year old non smoking female
age 55-59  3.40 x 40 x 60 = $8160  or 136.00 a month
age 60-64  6.00 x 40 x 60 = $14,400 or 240.00 a month
age 65-69  11.00 x 40 x 60 = $26,400 or 440.00 a month
age 70-74  23.17 x 40 x 60 = $55,608 or 926.80 a month
total for 20 years $104,568
again Sun Life a Term 20 costs 154.17 a month or 37,000.80  or saving <67,567.20>
term 10 was 83.25 a month

Some might say well I wont need that much coverage at the age, sit down with a financial planner and see what your number is!  Do you have a cottage and a home, want to leave a legacy? Whatever you may want... make sure you have the coverage!  If you have SISIP it will become unaffordable and then expire. Other Insurance companies term insurance is convertable, meaning you can switch it to permanent insurance.  This is a powerful option.  I would also like to say that if you are young, you can get your permanent insurance a lot cheaper and have it paid off in x amount of time, meaning you will not have a montly insurance bill. It may develop cash value you can borrow against, and depending on the type the death benefit may continue to grow. I encourage you to walk into any insurance company, get a quote, go to the SISIP website and formulate your own opinion on which is best for you.  And tell everyone serving to do the same.  The old term War Clause... non existant in many companies insurance, but verify this before you make a decision.  Make sure its convertible to permanent, always feel good knowing you have the option.
I will have to post the link for the SISIP rates or just google SISIP insurance and go to downloads and click on IRM policy.  I will repost a link and an email address you can contact me at if you want more information or have any questions.

Cheers

Hoss
CSAT Member

Number of posts : 2
Location : Winnipeg
Registration date : 2014-04-15

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Not Totally True

Post by Hoss on Tue 15 Apr 2014, 22:04

bigrex wrote:PMed is right, once they get the detailed info of your health and lifestyle, they weigh the risks. So someone who smokes and drinks or has identified a personal illness or high risk to due family illness, will pay more for less coverage than someone who doesn't smoke or drink and is in the gym on a daily basis.

SISIP has a bit of an advantage, not only because of the fact that they have offices located on every base, but it is the only insurance company in Canada that will pay benefits even if death or injury is incurred during combat or a high risk area.

SISIP is not the only company in Canada that will pay benefits even if death or injury is incurred during combat or high risk area. Most if not all major insurance companies do not have this clause anymore. I have written confirmation from Sun Life this is not an issue. But what they will tell you is that if you are knowingly being deployed to a high risk or combat zone that keep your current coverage and come see them after. If you are not expecting to be deployed you apply as per normal and even if you are deployed its a non issue.
For certain trades there may be a rating applied to the policy, ie it might cost more then normal but you have to weigh out the pros and cons yes it might cost more now, but if I am injured or become ill this may be the only insurance I will ever get.. and it becomes unaffordable and expires at age 75.... check with any major Canadian Insurance company and for peace of mind, get it in writing Smile
Certain trades may also be declined due to routine high risk activities. Check with the company and ask them to check it with underwriting to see what you can expect and then make an informed decision from there.

Also an office at every base, that has changed and there are many insurance agents that will come to your home to answer your questions saving you from having to go anywhere. Please see the detailed post below and cost as well. Thank you

Hoss
CSAT Member

Number of posts : 2
Location : Winnipeg
Registration date : 2014-04-15

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