Business TheReview Wednesday, November 25, 1992 — cs Re-entering life insurance can pay Have you owned a personal term insurance policy on your life for a few years? Are you in sound health? If you can answer “yes” to both questions, you could be on your way to saving hundreds — even thousands — of dollars a year. The cheapest pay-as-you-go life insurance is normally an annual renewable term policy. Each year, as you get older and your nisk of dying increases, the cost of your insurance premium also increases. However, this increasing annual rate is based on, among other things, your health at the time you apply for the policy. And so if you can show your health is as good at age 51 as it was at age 46, for example, you can make a fresh start — and lower your insurance premium in the bargain. Many insurance companies will allow you this sort of “re-entry.” You take another medical, update the application information, per- haps pay a fee and if you get a clean bill of health, your premium rate drops. You could also apply to another company, and escape paying the re-entry fee. But then you must deal with a new two-year “suicide and incontestability”’ clause. In other words, you won’t be covered if you commit suicide in the first two years, and the infor- mation you provided on the appli- cation can be challenged in that period. ere (Note: Whenever you replace an existing policy, always keep it in force until you can confirm the new policy is providing the cover- - age for which you applied:) Most insurance policies contain information about any re-entry options they offer. And, ideally, your life insurance agent should remind you when you first qualify for re-entry — typically five years after you take out the policy. Here’s an example: When I was 46, | took out a term life insurance policy from American Life Insur- ance Company (Alico). At age 51, my annual premium was $2,271. Alico allowed me to apply for re-entry — by paying a $400 fee — and if I qualified, would lower my premium to $1,213. The fol- lowing year, my premium would be $1,586 — compared with $2,665 if I didn’t apply to re-enter (or did apply and failed). So I could save, after the $400 fee, $658 in the first year, then $1,079 in the second year. The savings in each of the next three years ranged from about $800 to about $1,000. However, Alico would not guar- antee the premium amounts beyond the fifth year. For that reason — and to a lesser degree because I resented having to pay the $400 re-entry fee, which Alico refused to waive — I applied to Metropolitan Life for the same coverage. I passed the medical and ended up with a first-year premium of $1,540. My future savings will range from about $700 to $900 a year. And Met Life does guaran the future premiums. : ‘That’s not a bad return for spending a couple of hours with my life insurance agent fo review my options and then seeing the doctor to go through the medical’ people at Panorama family skate session. ENJOVING TIME ON THE ice were just two of many young Leisure Centre Sunday during the Skate rentals in a variety of sizes makes it easy for families to enjoy this recreational pursulf. The recreation centre plays music during the session, which has gained in popularity recenily. I followed my. agent’s recom- mendation of Met Life over some smaller companies which offered: slightly lower rates. Over the next five years, I will save $3,956. If I invest my average annual savings so they compound annually at seven per cent, Ill have almost $5,000. That’s not a bad return for spending a couple of hours with my life insurance agent to review my options and then seeing the doctor to go through the medical. You should talk to your agent to see if you still have the appropiate type and amount of insurance coverage — and are paying the most competitive (not necessarily the cheapest) premium. Don’t look for one right type of policy for everybody; you should have the kind and amount of coverage that matches your partic- ular needs — recognizing those needs change over the yeats. You will find almost as many Supporting arguments for the dif- ferent types of policies from the various companies as there are life insurance agents. It can be a challenge to find the night policy for you. But once you have that coverage in place, you still need to review both your needs and also the available prod- ucts every few years or after a major change in your personal/. financial situation — to make sure you always get the best value for your premium dollar. _ Mike. Grenby ts a Vancouver- based columnist and independent financial adviser who works with individuals; he will answer your questions as space allows — write to him clo The Review, 9726-First St, Sidney, B.C, V8L 3G7. bee Give to the ... Saanich Peninsula sone LOE caee ORTHOPAEDIC EQUIPMENT Give Us ABreak | Hospital Foundation © rund Raising Campaign LARGE SIGN ON the lawn at Saanich Peninsula Hospital is drawing attention fo the hospital foundation ’s annual fundraising Crive. GLEN MEADOWS) COUNTRY CLUB OPEN DAILY FOR: Lunches, Banquets, Parties, Weddings, Receptions, Etc. Relaxing, Picturesque Surroundings. 1050 MCTAVISH RD. 656-3136, OAK BAY SIDNEY. CYCLES OAK BAY SIDNEY.CYCLES | OAK BAY. SIDNEY CYCLES OAK BAY SIDNEY CYCLES For The Cyclist on Your Gift List!! SIDNEY CYCLES “Do the Right Thing” Gari TLOREL ‘Fantastic Gift Ideas and Great Stocking Stuffers!! Oak Bay _ Sidney Cycles 9711 - 5th St., Sidney 656-1555 OAK BAY SIDNEY CYCLES GAK BAY SIDNEY CYCLES: OAK BAY SIDNEY CYCLES OAK BAY SIDNEY CYCLES | gies Beyond a reduction in the appearance of daily use, helps diminish future visible signs of ageing with anew, patent Beyond refining the original technology, the new Niosome™ sphere more intricately replicates the natural lipid structure in the skin. Niosomet transports new and intensilied age-fighting ingredients to where skin needs them... To reinforce what skin docs naturally. existing dry lines, Niosome+ with By pending ARI. complex. Because Niosome+ can help neutralize the environmental ageing forces that can lead to future lines and wrinkles, skin looks youngerand maintains its youthful outlook longer. e Beyond a lightweight, contemporary: formula, Niosome+ is perfectly compatible with any skin type. PRICE: $50.00 BONUS GIFT > LANCOME PARIS. & us »> $8 f y rss 3 q LANCOME, PARIS ANNOUNCES FOR THE WORLD OF TOMORROW... A NEW NIOSOME AND A YOUNGER FUTURE FOR SKIN. Receive a special bonus "Les Indispensables’, yours with a purchase of $19.50 or more of any Lancome products, containing the following items: NUTRIBEL Nourishing Hydrating Emulsion, 20 mL. e SOIN PROGRESSIF DES MAINS Progressive Hand Treatment, 20 mL e — MAQUIMAT Fluid Foundation, Beige, 20 mI. e ROUGE SUPERBE _Long Lasting LipColour e MAGIE NOIRE Ean de Toilette, 2 ml. Offer valid from Noveniber 23rd to: December 5th, 1992, or while quantittes Vast. One bonus per customer hamro