Frequently asked questions.
Have questions about CAA Life Insurance? We’ve got the answers.
Learn all about life insurance, from how mortgage insurance is different from life insurance to how death benefits work to which type of policy may be right for you and more.
Why do I need life insurance?
It’s important to have life insurance to help protect your family and beneficiaries and ensure that they have the financial security they deserve. In the event that the unthinkable happens to you, your life insurance policy could help cover ongoing living expenses, including your mortgage, outstanding debts and credit card payments, child care, education expenses, funeral costs and more.
What types of life insurance plans are available?
There are three major types of life insurance: whole life, universal life and term life insurance. Within each of these types are variations you can choose from depending on your personal situation, goals and needs.
How long does it take for a life insurance policy to take effect?
When your life insurance policy takes effect depends on the type of policy you have. The average waiting period for policies to take effect is one to two years, but there are also policies that have longer waiting periods of up to five years. However, there are policies available that can have you eligible for a death benefit right away.
Mortgage insurance or life insurance. Which one do I need?
Mortgage life insurance is coverage that is designed specifically to pay off your mortgage – the death benefit is paid directly to the lender who holds your mortgage(s). CAA Term Life Insurance isn’t tied to your mortgage – it pays money directly to your named beneficiaries in the event of your death. This gives them more control over how that money is spent.
What does it mean when a life insurance policy is paid up?
A life insurance policy is referred to as “paid up” if it has been paid in full. A paid-up policy remains in effect until your death or until the term expires.
How can I customize my life insurance plans?
You’re in control of your life insurance coverage. You can choose from a variety of options, including the length of the term, to suit your goals and the needs of your family and beneficiaries.
What is not covered by life insurance?
Certain high-risk activities, like skydiving or bungee jumping, can cause your life insurance not to pay out. Suicide and murder are also not covered. Remember, life insurance is a contract between you and your provider. If there is any kind of fraud against your policy – if you’ve been dishonest about your health or lifestyle, for example – the terms of your policy could be voided. Limitations and exclusions apply. Please see the full policy for details.
How much does CAA Life Insurance cost?
The cost of your life insurance premiums is based on a number of factors, including the amount of coverage you need, your smoking status, your sex and your age. For example, the premiums for a 10-year term policy for a healthy, non-smoking 35-year-old would be much lower than the premiums for a 60-year-old smoker for similar coverage.
Does being a non-smoker help lower my insurance premiums?
Yes. Due to the numerous health risks associated with smoking, premiums for smokers are generally much higher than for non-smokers. Non-smoker rates apply to those who haven’t used any form of tobacco or tobacco cessation products in the 12 consecutive months preceding the date of application for insurance for non-smoker premiums and who meet CAA Life Insurance’s health standards.
Is life insurance taxable?
No, life insurance benefits are not taxable in Canada, so your named beneficiary or beneficiaries will not be taxed on the amount they receive.
What if I already have life insurance?
Life is full of surprises, and as you age, it’s important to make sure that your insurance coverage meets your needs. Another great reason? Having more than one policy can also be a good way to further customize your coverage.