Share, , Google Plus, Pinterest,


Posted in:

How Bankruptcy Influences Your Life Insurance

According to the latest statistics provided by the Office of the Superintendent of Bankruptcy Canada over 8,326 Canadians residing in Ontario declared bankruptcy over the second quarter of 2010. Unfortunately, this number keeps growing up in the next quarter.

As a matter of fact, bankruptcy is one of the major factors that influences life insurance quotes. And more than that if consider additional criteria such as age, health condition, bad habits the amount of premiums will soar instantly. All of the above mentioned factors are thoroughly examined by Toronto insurance companies while establishing your premiums. It definitely won’t be easy to shop for life insurance quotes in Toronto if you had financial problems in the past and consequently were forced to accept bankruptcy.

So what Toronto insurance companies have in store for those who are financially broke?

Actually, you’ll be left with not much of a choice. The fact of your bankruptcy will be reflected in your credit record which automatically will increase life insurance premiums. Therefore, it’s advisable you postpone your decision on life insurance. Unfortunately, you may still be faced with the same problem in future unless your bankruptcy is cleared from the credit record. Thing is, that Toronto life insurance companies will define you as a person with poor money management.

Consequently, your ability to pay premiums will be under question. Only within 7-10 years you’ll have it removed from your credit report.

However, waiting doesn’t worth putting your family under another risk of financial strain. You can consider 10-year term life insurance. Once the fact of bankruptcy is removed from your credit record you can have your insurance company review your case and lower premiums. There are a number of life insurance companies in Toronto which offer coverage for people who have gone into bankruptcy, namely Canada Life, Desjardines, Empire, AXA, RBC Insurance, Standard Life and more.

Life insurance companies in Toronto spend quite a bit to issue an insurance policy for its clients due to all of the commissions and administrative expenses. Consequently, the loss of premium payments as you go bankrupt can be detrimental for insurance company. If a person goes bankrupt, insurance company automatically stops receiving premium payments. And it’s too much of a risk. In other words, the more risk you pose to the insurance company the higher quotes on life insurance you can expect. More than that, insurance company may not approve the amount of insurance you apply for. Most likely you will be offered a smaller sized coverage.

Consider all of the above mentioned facts while looking for life insurance in Toronto. Bankruptcy is a difficult process which poses a lot of challenges when it comes to getting life insurance. However, there are ways out and it’s up to you which one to chose.

Sherry is a Blogger who writes about insurance, personal finance, debt and bankruptcy.One of her sites is Insurance Brokers in Toronto