Welcome to my new series on Life Insurance For Women. In the introduction, I mentioned the reasons why women need insurance and how it empowers you.

I am going to interview Chad Viminitz from GoLife insurance   https://golife.ca/fourcolumns on the following ten topics:

1. Women are being overcharged, a lot, for mortgage insurance – what you need to know!
2. Why women talk themselves out of the life insurance they want/need?
3. How to prepare for the baby- 3 pieces to financial protection (will, mat leave savings, life insurance).
4. Is underwriting for women different?

In the fourth interview, we focus on how is underwriting for women different. It is important that women need to know about being approved for life insurance.

What is underwriting?

Underwriting is the process of assessing the degree of “risk” relating to the person applying for life insurance. Basically, underwriting answers the question:  “Are you expected to have a standard life expectancy?” Underwriting is a process that benefits individuals applying for life insurance because it results in more individuals getting coverage and premiums for life insurance being less. For example, I have a heart condition and because underwriters can get more information about health conditions today, the odds of being approved have increased.

Why is underwriting a good thing?

Underwriting is a positive part of the application process as it has resulted in life insurance becoming more affordable (ie. lower term life insurance premiums) and with more individuals being approved and getting coverage, even if there are health concerns. It can be intimidating to share one’s medical history or vitals and wait to be “assessed” but it is an important part of the application process that does not need to be feared. Having underwriting completed upfront, at the start of the application process also gives you confidence that your coverage is actually in place. Creditor insurance (ie. mortgage insurance) for example completes their underwriting post-claim – meaning after the person is dead – at the wrong time. Underwriting that is done at the beginning results in the best life insurance coverage.

Is it harder for women to get approved for life insurance?

There is no difference between the underwriting requirement for a woman or a man. Of course, men and women may have different medical issues but life insurance pricing reflects the different risks. Women typically pay less for life insurance because they have better mortality rates, ie. they live longer.

What if I have a health issue? Can I still get life insurance?

Yes! Don’t let a medical issue stop you from applying for life insurance, the worst they can say is “no”. I have a heart condition and applied 3 or 4 times before I was eventually approved. Over time underwriting may take a different view on a certain health issue, especially as technology, drugs and treatments evolve. An example is individuals who are HIV-positive can now get life insurance, that wasn’t always the case. Life insurance companies are in the business of getting people coverage, know people and expect that medical treatments and conditions are part of a normal life, they just want to know the details before approving the policy.

Can women get coverage while they are pregnant?

Yes, even though the body is going through a significant change – you can apply for life insurance while pregnant. Pregnancy can have complications that can impact one’s application, blood pressure, and gestational diabetes being two examples. If possible, it’s recommended to apply while in your first or second trimester. Getting coverage before baby arrives provides confidence that your family is protected from day one of becoming a mom.

What is involved in getting approved?

Most life insurance applications need a combination of three elements:

1. Tele-interview – answering your questions about your medical history
2. Nurses’ visit – blood and urine samples are usually required for applications over $500,00 of coverage
3. Doctor’s report – These reports are sometimes requested to clarify or gain a better understanding of one’s medical information. It is not an indication of being declined or paying higher premiums. Greater clarity an underwriter has about an applicant’s medical condition, the better chance for an application to be approved.

The requirements specific to you will depend on your age and the amount of life insurance coverage you are applying for, ie. More coverage, more requirements.

What about No-Medical life insurance products?

Yes, there are life insurance products that are guarantee your approval. These policies come with limitations, restrictions and higher costs. Non-medical policies often cost 30-40% more, limit coverage between $25,000 to $350,000 and sometimes don’t pay a claim in the first couple of years. If you are considering a non-medical life insurance policy you should read the details of the policy. Answering a few questions and seeing a nurse will save you money and provide you with appropriate protection and good life insurance coverage.

What are the most common reasons people are declined for coverage?

It’s important to note that it is a small percentage of applications that are fully rejected. It does happen that an underwriter has to make the decision to decline an application. Some of the most common reasons are:

• Non-disclosure – the individual lied or was hiding information
• Ongoing medical investigation – the individual is scheduled for more tests or procedure
• Time frame – for example, a person may have had a heart attack, drug use or cancer but not enough time has elapsed from the date of the last episode
• Dangerous Driving and license suspension
• Illegal drug use

Being declined does not mean you cannot get coverage later if the reason for being declined changes or treatment improves – apply again!

Are insurance companies trying to charge the highest premium?

Not at all. Insurance companies are competing for clients and term life insurance premiums are at historic lows. Women should feel more confident applying for a personal life insurance policy compared to creditor insurance or mortgage insurance at the bank. Women are often charged 50% more for mortgage insurance at the bank. Women who apply for a personal policy usually qualify for “Preferred Underwriting”. Preferred underwriting means you may qualify for a 10% or 20% discount if you meet specific underwriting criteria, resulting in getting the best term life insurance rates possible.

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Photo Credits: AJ Yorio Samantha Sophia ieva swanson Priscilla Du Preez Jonathan Borba Hush Naidoo Samuele Errico Piccarini  Online Marketing

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When it comes to money, most of us know the importance of planning—but very few of us actually sit down to create a household budget. To better understand why budgeting, financial planning, and legacy preparation are important, I sat down with Tony Romolo, a seasoned professional with over three decades of experience in the financial services industry, currently with Manulife Private Wealth.

In our conversation, Tony shares candid insights on why a household budget is more than just numbers—it’s about control, choices, and creating a roadmap for your hopes and dreams. From the basics of budgeting to the importance of credit, estate planning, insurance, and even family values, Tony’s open thoughts offer a practical yet philosophical look at how money shapes our lives.

Please note: These open thoughts, ideas, and commentary on a household budget are those of Tony Romolo only. They are informal in nature and do not necessarily reflect the opinions of Manulife Private Wealth.

Tony, you have been in financial services for three decades. Walk me through why it is important to have a household budget.

A household budget is very important, and yet I can think of only a few that have one.  Why is a household budget important?  Because, in my opinion, a budget is about control.  A budget gives reasonable comfort and control over household finances.  It is the road map that will help determine how the money you receive is spent, saved, invested, gifted, and so on.  Because a budget is a forward-looking forecast, it is bound to be imperfect.  That’s okay.  The absence of a budget means a lack of control, stress, added expense, and so on.  Having a budget is a key component in helping you achieve the goals you set.  Sounds pretty reasonable and straightforward so far, yes?  In fact, a household budget is far more complicated and involved than it appears because a budget is about making choices.  Essentially, life planning (as much as that is possible) requires a household budget to help ensure you realize your hopes and dreams. 

Help me understand what we should include in a budget? 

A household budget is a forecast of money that will be received and money that will be spent over a future period.  A budget should be tweaked periodically and amended as required.  There are endless formats and tools to help establish a household budget ranging from the very simple to the very sophisticated.  Budgeting is essentially goal setting.  To successfully meet your budgeting goals, a household budget should include a couple of key things.  Firstly, a budget should not be a burden and a sore spot.  Remember, a budget is supposed to give you control and relieve household financial stress.  A properly structured budget should be a go-to tool that keeps you on track and gives you comfort.  Secondly, a budget should be flexible such that you can stay on plan while at the same time be prepared for managing unexpected expenses or money you unexpectedly receive.  Again, the idea is more about having a useful tool you can rely on as opposed to feeling terrible about going over budget or elated about being under budget.

How important is it to maintain a good credit score and rating?

Maintaining a good credit score and a good credit rating is very important.  A good credit score helps lenders assess your creditworthiness.  A good credit score will help lenders provide the best loan pricing possible.  A good credit score will give the prospective borrower the most favorable terms and conditions when borrowing money.  In today’s day and age reliance on credit and access to credit is perhaps more important than ever.  Having a good credit rating and credit score will help you with the credit you currently have and with the credit, you may need to access in the future.

Explain the different kinds of credit ratings and how can I mess it up? 

Your credit score recaps how much you owe to lenders, how much credit you have access to, what your repayment history has been like and other things.  Essentially, credit history reports capture installment loan information (like your car loan) and revolving or line of credit information such as the limit on your credit card, how long you have had the card, how much you owe, etc.  Your credit score is sensitive to how much actual debt you owe and how much you have access to.  It is also sensitive to how often you look to borrow money.  It is sensitive to how many different lenders you approach.  It is certainly sensitive to your repayment history.  Your repayment history is carefully tracked.  If you miss a monthly payment, for example, it will be re-scored as such.  Credit history reports are meant to be factual.  If you file a consumer proposal or declare bankruptcy, for example, that will be recorded in your credit history report.  Essentially, it is important to adhere to the terms and conditions set out by the lender that you agree to when you borrow. 

Why is having a financial plan important and what is your role in doing that?

Having a financial plan is very important.  Generally, a financial plan is all-encompassing capturing all money-related elements of an individual, couple or family.  A financial plan is the blueprint and road map one can rely on to help achieve financial life goals.  For the past couple of decades, I have worked closely with financial advisors in a multitude of different firms that specialize in financial planning.  Again, there are amazing tools and software to help navigate the complexities of financial planning.  I have really never been a financial planner, per se.  I have always participated in helping out with certain key aspects of the overall financial plan. 

Let’s talk about estate planning. Why is it important? 

An estate is all the money and property one owns at any given time.  The estate may exist while one is alive when one dies and beyond death.  As you might think, estate planning can be quite multi-faceted and usually refers to the planning process involved in passing on one’s money and property after death.  Inheritances.  Charitable giving.  Tax minimization.  I will get a little philosophical and I will keep it simple because the topic is very broad.  Estate planning deals with the legacy one leaves behind.  Estate planning is about giving meaning to the life one has led. 

Why is having life insurance important?

Life insurance is a very unique asset.  As you might imagine, it is insurance in one’s life.  One might argue that there is no need to insure something that can be easily replaced if lost.  By that logic, life insurance is absolutely essential because human life is irreplaceable.  I realize I’m getting philosophical again.  A financial plan might outline the need and amount of life insurance required.  Your budget will also capture what the cost of life insurance is and how that factors into your overall goal-setting and legacy planning.  The owner of a life insurance policy will insure life and name a beneficiary or beneficiaries.  Life insurance is an excellent tool used to protect assets and replace income in the event of the death of the insured.  The owner of the life insurance policy can also access the value of the policy during his or her lifetime.  I stand by my earlier comment.  We work incredibly hard to generate income and create wealth so protecting that income and wealth with life insurance is a very prudent thing.  Interesting use of life insurance is actually an attractive estate planning strategy.  I will give you a rough idea:  A parent can purchase life insurance on the life of their child and then transfer that life insurance to the child in a rollover transaction.  This is attractive because, essentially, the parent has the ability to purchase life insurance for the benefit of yet-to-be-born grandchildren! 

What is your opinion on having a will?

It is important to have a will.  We talked about financial planning and estate planning.  A will is a key part of the planning.  A valid and well-thought-out will ensure estate planning efforts are seen through to completion.  Get a will properly drafted.  The costs are justified.  Avoid the unnecessary costs, delays, and family bickering that result when one dies intestate (without a will). 

Give me three practical tips on how to manage our finances.

Three practical tips when it comes to managing your finances:

Pay yourself first.  This one is my favorite.  The idea is to set aside, save, or automatically invest a percentage of your regular income as soon as you receive the income.  This is a great habit to get into.  You will not notice you are paying yourself first.  You will build an excellent investment portfolio/savings.

Do not carry high-interest debt.  Do not carry credit card balances.  Pay your credit card debt in full each month.  If you can, refinance your debt into the lowest-cost loan possible.  Usually, refinancing your debts into your mortgage is best.  Part of this point is to avoid the trap of refinancing your mortgage with regular frequency because that sort of defeats the purpose!

Invest in yourself.  Take a college/university course every year.  Read.  Be a lifelong learner.  Be active and look after your health.  Be a part of your community and be sure to give back.  Volunteer.  Investing in yourself will generate ever greater financial and personal dividends. 

Talk to me about food, family, and some of your favorite restaurants in Toronto.

Family is very important to us.  I refer to family in a broad sense.  It is important to remember and acknowledge we are inter-connected to our parents, grandparents, uncles, aunts, and so on.  We are all rich tapestries.  We are all in this together.  Life would have us believe we are misunderstood, alone, and isolated, however, the opposite is true.  Our family’s favorite restaurant is Terroni.  Everything on the menu is a win!

Photo Credits:  NORTHFOLK Kelly Sikkema  Christiann Koepke Blake Wisz Green Chameleon Melinda Gimpel

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