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Insurance Inside Facts

We offer the following information to you as a guideline to help you determine the choices which may be appropriate to your situation.

Estimating how much of your life insurance benefit may go to cover funeral expenses

The cost of a funeral and all related expenses will vary with each individual. However, Manulife Financial recommends that you plan for your survivors to spend a minimum of $6,000 for services that include cremation, and a minimum of $8,000 for services that include a casket burial. Remember that these figures may be considered the minimum. Many funeral services today have a total cost of well over $12,000. And while modesty and thrift may prompt you to request the smallest possible service for yourself, the ultimate decision lies with your survivors. You owe it to them to take their wishes into account when allowing for funeral costs in your life insurance calculations.


Estimating how much of your life insurance benefit may go to cover education expenses

The cost of university education in Canada varies by province, by faculty and by the years in which a student is enrolled. For example, in the 2000/2001 academic year, undergraduate arts students paid an average of $3,380 per year in tuition, up 3% from 1999/2000. (This does not include the cost of room and board.) The highest average undergraduate arts fees were in Nova Scotia, at $4,408.

The trend appears to be toward rapid growth in tuition fees. The 2000/2001 tuition level is more than double the average tuition of about $1,500 at the beginning of the 1990s. And while fees at universities in Quebec were frozen at $1,668 for Quebec residents, students from other provinces attending Quebec universities faced a 7.8% increase in tuition in 2000/2001. In the same academic year, tuition fees increased at universities in five provinces: Saskatchewan, Nova Scotia, Ontario, Alberta and New Brunswick.

The following are examples of the average annual university tuition fees in Canada, by faculty, in the 2000/2001 academic year:
  • $3,360 tuition per year for Science, an increase of 3.3% from 1999/2000
  • $3,622 tuition per year for Engineering, an increase of 4.5% from 1999/2000
  • $3,688 tuition per year for Music, an increase of 11.3% from 1999/2000
  • $4,106 tuition per year for Law, an increase of 18.2% from 1999/2000
  • $5,975 tuition per year for Medicine, an increase of 3.4% from 1999/2000
  • $7,678 tuition per year for Dentistry, an increase of 6% from 1999/2000

In addition to the tuition costs, your child may have to live in residence to pursue the education of his or her choice. If this is the case, add additional life insurance benefits to cover their Room and Meal Plan. For example, the annual cost of a single student's room and meals for the 2001/2002 academic year ranged from $2,464 (Université de Sherbrooke) to $8,112 (Ryerson University).

Source: Statistics Canada - The Daily, Aug. 28, 2000.
What your beneficiaries would need to submit a claim

To make a claim under this life insurance plan, your beneficiaries will need to know your Certificate number and how to contact Manulife Financial. This information can be found on your Certificate, along with other helpful facts such as the amount of the benefit. We recommend that you make things easier for your beneficiaries by keeping with your Certificate any documents we send you that modify your coverage.

This will get the claim process started. We will help them with the rest. Your beneficiaries will have to complete claim forms, and forward them to us along with proof of death, cause of death and other information we may require including, where applicable, proof of your membership status with your professional licensing association/ordre. We will then review all information to verify the applicability of the coverage and the information you provided to us in your application.

There are many ways to choose to have the benefit paid. If you feel that your beneficiaries may need assistance with financial planning, Manulife Financial can help your beneficiaries select the right financial planner to advise them on investments and assist them in achieving their financial goals and objectives.