National Life Unveils NL Pick-A-Term, The Most Flexible Term Life Plan Available

Bookmark and Share

NL Pick-A-Term provides advisors with a customized term life insurance solution to recommend to their clients

TORONTO, Nov. 4, 2004 – National Life announces the launch of NL Pick-A-Term, the most flexible term life plan available to the Canadian marketplace. This new product enables advisors to provide their clients with tailored insurance protection to suit their specific needs.

“NL Pick-A-Term gives you the flexibility to customize the length of coverage to the number of years you require from as short as 10 years to as long as age 85,” says Promod Sharma, Actuary Individual Insurance. “This is in contrast to conventional term life insurance where if you require coverage for 14 years you must buy Term 10 and pay high renewal premiums or buy Term 20 and pay higher initial premiums,” he continues.

NL Pick-A-Term features and guarantees:

Coverage Starts at $100,000 and the Death Benefit is Tax-free
NL Pick-A-Term coverage starts at $100,000 and the Death Benefit the policyholder’s family receives in the event of death is tax-free. This Death Benefit can cover immediate and ongoing expenses such as funeral costs, mortgages and loans or provide the policyholder’s family with a continuing income. The payment of the Death Benefit also bypasses the costly probate process typically associated with estate assets.
Renewable and Convertible
Policyholders can extend their coverage beyond the Policy Term on a Yearly Renewable Term basis as well as convert their policy to a permanent life plan prior to turning 65, or on the second policy anniversary if you are over 65.
Quick Pay Premiums
Premiums can be quick paid in as little as three years, which means policyholders can pay for their coverage in a shorter period than the Policy Term, which saves them money in the long term. Premiums set when the policy is issued are guaranteed never to increase and will not change. Premium bands start at $100,000, $200,000 and $500,000.
Policyholders can pay premiums by Pre-Authorized Chequing or by annual direct billing. In addition, NL Pick-A-Term provides policyholders with a 30-day grace period between when the premiums paid are no longer sufficient to pay for their policy and when the policy will lapse. This allows them to resume making deposits without penalty to keep the policy in force.
Guaranteed Surrender Amounts
Should the needs of policyholders change after they have quick paid their policy, NL Pick-A-Term offers Guaranteed Surrender Amounts typically based on 90% of unused premiums. These are available if policyholders surrender their policy, let it lapse or reduce their coverage. Guaranteed Surrender Amounts assist policyholders and their families when circumstances change.
Policy Options
NL Pick-A-Term offers three policy options: Single Life, Joint First To Die (which is a policy on two people and pays the Death Benefit on the first death), and Joint Last To Die (also a policy on two people but pays the Death Benefit on the last death). Issue ages range from 0 to 70 for all three policy options.
Death Benefit Types
Three Death Benefit types are available: Level, Indexed and Mortgage Protection. The Level Death Benefit offers clients a specific amount of insurance while the Indexed Death Benefit allows the amount of coverage to increase or decrease by 1% to 8% each year. Upon purchasing a NL Pick-A-Term policy clients choose the length of the indexing period they desire, up to the duration of the Policy Term. The Mortgage Protection Death Benefit provides clients with insurance that reflects a declining mortgage balance.
Optional Benefits
NL Pick-A-Term provides four optional benefits: Accidental Death Benefit, Children’s Term Benefit, Waiver of Premium on Disability and NL Pick-A-Term Level Benefit. The NL Pick-A-Term Level Benefit is only offered on a Level Death Benefit. Up to five NL Pick-A-Term Level Benefits are available per policy and they can be added to both Single Life and Joint Life coverage.

“With its flexibility, quick pay premiums, guaranteed surrender amounts and selection of policy options, death benefit types and optional benefits, NL Pick-A-Term is an insurance solution advisors will want to recommend to their clients,” states Promod Sharma. “If clients require lifetime protection, permanent life insurance is available and if they want additional investment options there is universal life. But for every other insurance need NL Pick-A-Term is an excellent choice,” he adds.

National Life

National Life has been a strong performer in the financial services industry for over a century, offering individual insurance, group life & health insurance, and retirement & investment products across Canada and in parts of the Caribbean. With a reputation for service excellence and product innovation, National Life works in partnership with top independent brokers and consultants to provide long-term wealth management solutions and health benefit plans to clients.

National Life has been rated “A” (Excellent) by A.M. Best Company, the oldest insurance rating agency in the world. First rated in 1992, we have maintained an “A” rating each year. National Life is a member of the Industrial Alliance Group of Companies, which is the fifth largest life and health insurer in Canada, based on assets.