Learn More - Understanding Insurance
We offer the following information to you as a guideline to help you determine the choices that 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. But the average cost of a funeral is $7,400,* and many funerals can cost much more than that. 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.
* According to Ontario’s Board of Funeral Services, The Toronto Star, February 20, 2011.
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 2011/2012 academic year, undergraduate arts students paid an average of $5,366 per year in tuition, up 4.3% from 2010/2011. (This does not include the cost of room and board.) The highest average undergraduate arts fees were in Ontario, at $6,640.
The trend appears to be toward rapid growth in tuition fees. Between the 2010-2011 and 2011/2012 academic years, tuition fees increased at least 1.4% in every province except Newfoundland and Labrador, where there was a tuition freeze in effect. Ontario, in addition to having the highest undergraduate fees, also experienced the greatest increase, at 5.1%.
The following are examples of the average annual university undergraduate tuition fees in Canada, by faculty, in the 2011/2012 academic year:
- $5,247 tuition per year for Science, an increase of 3.9% from 2010/2011
- $6,326 tuition per year for Engineering, an increase of 5.6% from 2010/2011
- $9,214 tuition per year for Law, an increase of 6.4% from 2010/2011
- $9,806 tuition per year for Pharmacy, an increase of 8.8% from 2010/2011
- $11,345 tuition per year for Medicine, an increase of 4.4% from 2010/2011
- $16,024 tuition per year for Dentistry, an increase of 6.4% from 2010/2011
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 plans. The average annual cost of a single student's room and meals for the 2012/2013 academic year is much higher than tuition costs – for example, $8,243 at Simon Fraser University,1 $9,149 at Concordia University2 and $10,806 at Ryerson University.3
Source (unless otherwise noted): Statistics Canada - The Daily, September 16, 2011.
2 http://residence.concordia.ca/residenceadmissions/rates/?&print=1; http://residence.concordia.ca/residenceadmissions/mealplan/
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.