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Financial underwriting is difficult since it involves an almost infinite number of situations. Any set of rules or guidelines will have a certain amount of fluctuation from the norm and should be viewed as only a beginning point or a point of reference.

A cover letter from the representative explaining the purpose of the insurance and how the amount was determined should be attached to the application. It should also include any additional knowledge the representative has about the applicant, beneficiary and owner.

Underwriting tools include but are not limited to any of the following:

  • Financial information provided by the applicant on the application or a questionnaire
  • Financial Needs Analysis
  • Copy of the Empire Life Concept that was used
  • An Inspection Report (IR)
  • A Business Beneficiary Report (BBR), a.k.a. Business Insurance Report (BIR)
  • Corporate Financial Statements / Tax returns
  • Personal Financial Statements / Tax returns
  • Fair Market Value evaluation (FMV is generally 10 x net business income)
  • Copies of agreements (buy/sell, loans, partnership)
  • Stock values and how values were determined

**We are only able to consider Canadian income and net worth**

Personal Insurance


Type of Coverage


Amount Parameters
Best Case

Income Replacement

Replacing the flow of funds required to maintain current standard of living in the event of the earner's death


** If still employed and earning income









Multiple of Income

20-30 X

15-25 X

15-20 X

10-15 X

7-10 X

5 X

5 X



(not estate creation!)

To preserve the insured's estate, i.e. cover estate taxes and other fees at death.

 50% of net worth

Charitable Gifting

To continue an existing relationship between the insured and the chosen charity.

If the client wants to get a yearly tax receipt for premiums paid, the charity needs to be the policy owner.

If the insured wants the tax receipts for his estate in the year of death, the insured must remain owner of the policy.

Previous pattern of regular giving (either monetary or through volunteer work or fundraising) and attempt to determine the likely total value of giving through the lifetime of the insured.

The insured should have an adequate personal insurance program already established.

There 'must be' a demonstratesd link between the policyholder and the proposed insured.  Past and current relationship must be clearly outlined to explain the insurable interest with details of past contributions and volunteer support provided by both the owner and the proposed insured.

We will adhere to usual financial underwriting guidelines for universal life and investment purposes.  The new policy will not be in addition to financial underwriting guidelines.


Establish insurance at young age at low premiums

Savings vehicle in UL

Parents should have 2X coverage of that applied for on the life of the child.

All children in a family should be insured for similar face or premium amounts.  An explanation from the representative is needed if this is not so.  The Underwriter will then make a decision on an individual basis.

If UL is being considered as an investment vehicle, the face amount may be larger than 1/2 of the parent's coverage but the premium amount.


Business Insurance

Key Person
We will usually consider 5 times income for the amount of key person coverage, but may allow up to 10 times income for best case scenarios.

% of ownership x the Fair Market Value (FMV)
Are all partners applying at this time or does in-force coverage exist elsewhere?

Creditor Insurance

  • We will usually consider up to 100% of loan to a sole proprietor.
  • We will consider as personal insurance for 100% of loan with a personal beneficiary; however collateral assignment is recommended.

New Business Ventures
Individual consideration based on the client's experience in the field, amount of owner's paid-in capital, start date of business, realistic projections of near term growth, contracts in place etc.