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Frequently asked questions

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Question : What are my financial obligations at death?
Answer : The amount required depends on your situation, and to determine this you must be familiar with your financial obligations. Here are some examples of financial obligations you may have to deal with following a death:
  • funeral costs
  • credit card balances
  • notary fees
  • amounts necessary for the subsistence of dependants
  • taxes
  • etc.
Question : What is a mutual insurance company?
Answer : It is an insurance company owned by its policyholders.

Question : Is there an ideal age to purchase life insurance?
Answer : Yes, when you are young and in good health.

Question : Who is the insured?
Answer : That is the person whose life or health or covered by the policy.

Question : In principle, are all people insurable?
Answer : Yes. In reality, very few applicants are rejected. In most cases, people with problems are insurable at higher rates, i.e. for an extra premium.

Question : What is an insurance policy?
Answer : It is the written contract between the person purchasing the insurance and the insurance company.

Question : What does insured capital mean in terms of life insurance?
Answer : This is the amount of money that the life insurance company will pay to the beneficiary after the death of the insured as defined in the contract.

Question : What is a premium?
Answer : It is the amount of money the policyholder must pay periodically to the insurance company to ensure the life insurance policy remains in effect.

Question : What is an extra premium?
Answer : An extra premium or rating is an additional premium required to cover a higher risk than normal.

Question : What is an application?
Answer : It is a document by which a person asks to subscribe for insurance contract. This document, signed this person, gives certain information on his adress, birthdate, occupation, health, name of his beneficiary, etc.

Question : What is a policyholder?
Answer : This is the person who has purchased an insurance policy on behalf of him or herself or another person. The policyholder is also the owner of the policy. This person can also be referred to as the holder, bearer or owner of the policy.

Question : What is proof of insurability?
Answer : This is proof produced through a medical examination or otherwise that the applicant meets the requirements of the insurance company under a specific contract.

Question : What is a paramedical exam?
Answer : It is an examination conducted by a nurse.

Question : Is a medical exam always required?
Answer : In principle, all insurance companies reserve the right to demand any candidate undergo a medical examination. But, in practice, they do not always require a medical exam. This requirement depends on the age of the candidate, the amount of insurance being purchased and the candidate’s health.

Question : What happens if the insured has consciously made a false statement?
Answer : If it is proven that there has been fraud by the insured, the contract is null and void. When it comes to insurance, as in other things, honesty is the best policy and more profitable than fraud.

Question : What is a waiver of premium benefit?
Answer : It is a benefit that fully or partially exempts the individual from paying premiums in the case of total disability.

Question : What is personal insurance?
Answer : This is insurance covering a single person.

Question : What are deadlines for the purposes of life insurance?
Answer : This is the date on which a sum of money is due. This can be the insured capital of the insurance or the premium payable to keep the policy in effect.

Question : What is whole life insurance?
Answer : It is insurance that provides protection for the insured’s entire life. Payment of premiums may be spread out over the insured’s entire life or over a pre-determined number of years in accordance with the clauses of the contract.

Question : What is family insurance?
Answer : This is insurance that protects the members of a family, currently alive and yet to be born, up to the age defined in the contract.

Question : What is term life insurance?
Answer : This is insurance that provides protection for a limited period. This is the form most suitable for temporary needs. In general, term life insurance does not include cash values. This form of insurance offers two advantages: it provides low-cost protection and it allows the insured to convert the policy after the number of years determined in the contract without proof of insurability.

Question : What is an endorsement?
Answer : This is a clause added to an insurance policy to make certain modifications to the terms of the policy, either at the time of purchase or later.

Question : What is a cash surrender value?
Answer : This is the amount available that the policyholder can draw out of the policy if desired before the insured capital is paid out.

Question : What is paid-up insurance?
Answer : This is insurance for which the policyholder has stopped paying premiums, either because, for mixed insurance or whole life products, the policyholder has paid all required premiums or because a policyholder who is unable to pay the premiums has arranged to have the terms of the contract changed to a lesser benefit based on the premiums already paid.

Question : What is a double benefit?
Answer : This is a clause of an insurance contract the calls for the company to pay double the insured amount should the covered death result from an accident.

Question : In the case of suicide by the insured, does the insurance company pay the entire insured capital?
Answer : Typically yes. However, if the suicide occurs within 2 years of the date the contract takes effect, the life insurance company will only pay out to the beneficiary the equivalent of the premiums paid.

Question : What is group insurance?
Answer : This is a contract that covers multiple people at the same time when the people involved have something in common: employees of the same business, members of an association. The advantage of group insurance lies in having the group members pay less in premiums for the same amount of insurance, generally without a medical examination or proof of insurability.

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