Hi everyone, I am about to talk to the financial broker who sold me this Universal Life Insurance I had for almost 4 years now ( Admittedly, I was one of those ignorant people who signs this kind of stuff without full knowledge of what was written in the contract) Here's what is in the insurance policy:
PLAN : Univeral Life
TOTAL ANNUAL PREMIUM : $508.16
TOTAL MONTHLY MINIMUM PREMIUM : $ 42.35
PLANNED PREMIUM : $125.00 Monthly
DEATH BENEFIT OPTION : Sum Insured
MONTHLY ADMINISTRATION FEE : $12 payable to Insurance Age 100
PROVINCIAL PREMIUM TAX : 2.00% from each deposit made to your Accounts. This percentage will not change unless required by gov't legislation
PLAN TYPE : Single Life
COVERAGE EFFECTIVE DATE : April 1, 2013
LIFE INSURED : JMB Age 25, Male, Non Smoker
SUM INSURED : $300,000
MINIMUM MONTHLY PREMIUM : $42.35
COST OF INSURANCE OPTION : Yearly Renewable Term
I believe the investment part is invested in Market Indexed Accounts under American Equity Index and Canadian Equity Index both at 50%.
The reason I was shaken from my laziness into looking stuff like this was there was another broker who looked into my portfolio and said that BMO insurance has high Management Fees and made me looked into this line in my insurance policy to which I believe my broker never mentioned to me as far as my memory is concerned. Here is what it says "THE MAXIMUM DAILY BMO MANAGEMENT FEE ON EACH MARKET INDEXED ACCOUNT IS 0.0089 AND IS GUARANTEED AS LONG AS THIS POLICY REMAINS IN FORCE
My gut feels right now is I am into something not really for me as of right now. I am 29 y/o with 50k annual salary with wife who doesn't have stable income right now and with a 2 year old child. Living with parents right now so saving a lot from there till we buy our own house. I also have a current car loan with still 22k to be paid.
Any thoughts or suggestions what I should ask the broker when I talk to her regarding my policy?
My wife and son has same UL insurance with BMO under the same broker with 125 and 50 monthly payment respectively.