| Financial Underwriting Requirements |
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Life Insurance
Critical Illness Insurance
Note: This document is only a guide, and should be taken as such. The maximum amounts permitted may be decreased in certain situations (e.g. new job, new business, existing sum insured, etc.)
Personal Insurance
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Need for Insurance |
Requirements and Justification |
Maximum Amount Recommended |
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Personal coverage
Estate preservation |
Requirements:
- For amounts of $1,250,000 and over, complete the personal finance questionnaire (03052E)
- For amounts of $2,000,001 and over, provide a balance sheet and an inspection report
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Age Income Factor
18-40 20 X
41-50 15 X
51-65 10 X
66 and over 5 X
Estate preservation: take into account liabilities and taxes on capital gains. |
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Personal Ioan |
Requirements:
- For amounts of $1,250,000 and over, complete the personal finance questionnaire (03052E)
Justification:
- Loan information: name of amount, reason for loan
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- One borrower: 100% of unpaid balance
- Co-borrowers: prorated based on amount borrowed by co-borrower
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Children and inter-generational transfers |
Requirements:
- For amounts of $250,000 and over, provide a letter
Justification:
- Sum insured on parents and other children in the family
- Family income
- Reason for insurance
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- Maximum of $500,001
- Individual consideration for higher amounts
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Charitable donations |
Justification:
- Reason for insurance
- Beneficiary information
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- Maximum of $50,000
- Individual consideration for higher amounts
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Business Insurance
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Need for Insurance |
Requirements and Justification |
Maximum Amount Recommended |
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Redemption of shares |
Requirements:
- For amounts of $1,250,000 and over, complete the business finance questionnaire (03053E)
- For amounts of $2,000,001 and over, provide a balance sheet and an inspection report
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- % of ownership x value of business
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Key partner
Key person |
Requirements:
- For insurance amounts of $1,250,000 and over, complete the business finance questionnaire (03053E)
- For amounts of $2,000,001 and over, provide a balance sheet and an inspection report
Justification:
- Determination of amount
- Financial impact in case of loss
- Description of expertise
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- 5 to 10 times the salary based on age, value of expertise, and ease of replacement.
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Critical Illness Insurance
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Need for Insurance |
Requirements and Justification |
Maximum Amount Recommended |
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Personal coverage |
Requirements:
- For amounts up to $500,000, indicate the personal income
- For amounts of $500,001 and over, complete the personal finance questionnaire (03052F)
- For amounts of $1,000,000 and over, provide a balance sheet and an inspection report
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Age Income Factor
18-55 7 X
56-60 5 X
61 and over 3 X
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Critical Illness Insurance for Children - Harmony New Generation
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Need for Insurance |
Requirements and Justification |
Amount Recommended |
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Personal coverage for children |
· All children from the same family must be covered for the same amount of critical illness insurance. Otherwise, provide details in the application.
· No critical illness coverage is required for parents. |
$100,000 or less |
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· All children from the same family must be covered for the same amount of critical illness insurance. Otherwise, provide details in the application.
· The critical illness amount should not exceed the maximum between :
- 50% of the parent critical illness amount, including the group insurance owned by the father or the mother
- $100,000
If higher than 50% and $100,000: individual consideration |
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