Financial underwriting requirements

This page provides information on the amount of insurance you can offer according to the proposed insured's situation and the associated requirements.

To help us make the best possible decision and speed up processing times for insurance applications, please follow the guidelines and instructions below.

Make sure to include and exclude the following amounts when calculating the income of the person you're offering insurance coverage.

Include	Exclude
Earnings (if paid on a regular basis) Bonuses (if paid on a regular basis) Net commissions	Capital gains (non-recurring amount) Dividends Investment income Inheritance

At all times:

The in-force insurance amount is taken into account when analyzing the insurance application.
For coverage over the maximum amount, we recommend including a cover letter justifying the amount of insurance requested. We analyze these applications on a case-by-case basis.
We may ask for additional justification to order to analyze an insurance application.

Life insurance

Personal insurance

For coverage of $1,500,000 or more, we recommend including a cover letter justifying the amount of insurance requested. The application will then be analyzed on a case-by-case basis.
The personal financial questionnaire is required for coverage over $3,000,000.

Situation / proposed insured	Maximum amount	Instructions
Income replacement	Highest amount by age: 18–30: $500,000 / 30 x income 31–40: $500,000 / 25 x income 41–50: $500,000 / 20 x income 51–60: $250,000 / 15 x income 61–65: $250,000 / 10 x income 66–69: $250,000 / 5 x income Ages 70 and up: $100,000
Spouse with no income	Highest amount by age: 18–50: $500,000 / 50% of insurance amount held or justified by the spouse with income. 51–69: $250,000 / 50% of insurance amount held or justified by the spouse with income. Ages 70 and up: $100,000 / 50% of insurance amount held or justified by the spouse with income.	Enter the following information in the Special instructions section of the application: Income of spouse with income Amount of insurance held by spouse with income or reason for not having insurance
Unemployed person of full age	18–50: $500,000 66–69: $250,000 Ages 70 and up: $100,000 These clients are not eligible for the following additional coverages: Guaranteed insurability benefit Disability waiver of premiums Disability waiver of deposit
Child	$500,000 Higher amounts considered on a case-by-case basis.	For amounts over $500,000, enter the following information in the Special instructions section of the application: Amount of insurance held by parents and siblings Family income Reason for the insurance
Post-secondary student	$1,000,000 Higher amounts considered on a case-by-case basis.	For amounts over $1,000,000, enter the following information in the Special instructions section of the application: Field of study Expected date of graduation Expected salary
Protection of assets	Amount equivalent to liabilities and expected tax on capital gains
Personal loan	100% of the loan balance. The amount must be prorated if there are co-borrowers.	Enter the following information in the Special instructions section of the application: Lender's name Reason for the loan Loan balance If applicable: Name of co-borrower and prorating
Charitable giving	$500,000 Higher amounts considered on a case-by-case basis.	Enter the following information in the Special instructions section of the application: Purpose of the insurance Desired tax impact Donation history and reasons The proposed insured must pay for the contract.
Bankruptcy (current or past)	$250,000 Higher amounts and repeat bankruptcies considered on a case-by-case basis.	Enter the following information in the Special instructions section of the application: Bankruptcy amount Bankruptcy circumstances Expected date of discharge from bankruptcy

Business insurance

For coverage of $1,500,000 or more, we recommend including a cover letter justifying the amount of insurance requested.
The Company’s financial position section of the application must be filled out for an amount over $500,000.
The company's financial statements are required for coverage over $3,000,000.

Situation / proposed insured	Maximum amount	Instructions
Buy-sell agreement	Prorated to company's net worth. An additional amount may be considered if the company has plans for future development. All shareholders must be insured unless they are not insurable.
Key person	10 x income Based on these criteria: Age Labour shortage in the field Value of expertise Industry	Enter the following information in the Special instructions section of the application: Financial loss related to departure of key person Description of their expertise Explanation of insurance amount offered
Commercial loan	Prorated to the loan balance. Higher amounts considered on a case-by-case basis.	Enter the following information in the Special instructions section of the application: Lender's name Loan details: reason for loan, balance, maturity, terms Explanation if the insurance amount is more than the maximum amount
Business insurability coverage	The lesser of: The prorated fair market value of the business Twice the basic coverage	Include with the insurance application: Financial statements for the last 3 full years Document specifying the proposed insured's share in the business
Spouse/child	See maximums for personal insurance.	The policyowner must be a business wholly owned by the spouse or parent.

Critical illness

Personal insurance

For coverage of $500,000 or more, we recommend including a cover letter justifying the amount of insurance requested.
The total insurance amount for the proposed insured cannot be more than $3,000,000. This amount includes all personal and business insurance in force, under analysis and applied for with any insurance company.

Situation / proposed insured	Maximum amount	Instructions
Income replacement	18–55: 10 x income 56-60: 7 x income Ages 61 and up: 7 x income
Spouse with no income	The higher of the following amounts: $500,000 / 50% of insurance amount held or justified by the spouse with income. Higher amounts considered on a case-by-case basis.	Enter the following information in the Special instructions section of the application: Income of spouse with income Amount of insurance held by spouse with income or reason for not having insurance
Unemployed person of full age	$100,000
Child	$250,000 The child's siblings must be insured for a similar amount. Higher amounts considered on a case-by-case basis.
Post-secondary student	$250,000 Higher amounts considered on a case-by-case basis.	For amounts over $250,000, enter the following information in the Special instructions section of the application: Field of study Expected date of graduation Expected salary
Bankruptcy (current or past)	$100,000 Higher amounts and repeat bankruptcies considered on a case-by-case basis.	Enter the following information in the Special instructions section of the application: Bankruptcy amount Bankruptcy circumstances Expected date of discharge from bankruptcy

Business insurance

For coverage of $500,000 or more, we recommend including a cover letter justifying the amount of insurance requested.
The Company’s financial position section of the application must be filled out for an amount over $250,000.
The total insurance amount for the proposed insured cannot be more than $3,000,000. This amount includes all personal and business insurance in force, under analysis and applied for with any insurance company.

Situation / proposed insured	Maximum amount	Instructions
Buy-sell agreement	Prorated to company's net worth. An additional amount may be considered if the company has plans for future development. All shareholders must be insured unless they are not insurable.
Key person	7 x income Based on these criteria: Age Labour shortage in the field Value of expertise Industry	Enter the following information in the Special instructions section of the application: Financial loss related to departure of key person Description of their expertise Explanation of insurance amount offered
Spouse/child	Spouse: 100% of insurance amount held by the spouse or justified insurance amount if not insurable. Child: $500,000 / 50% of insurance amount held by the parent or justified insurance amount if not insurable.	The policyowner must be a business wholly owned by the spouse or parent.

Disability insurance

Financial evidence guide: SOLO Disability Income
Monthly amount $	Current employment situation
Income Enhancement 20%	n/a	Federal income tax returns for the last 2 years Financial statements for the last completed year
3,500 and less including in-force*	No financial evidence	No financial evidence
3,501 + including in-force*	No financial evidence	Federal income tax returns for the last 2 years Financial statements for the last completed year

*The monthly amount requested on the illustration must be added to the insured's in-force insurance amount. When calculating in-force insurance, you should not include the debt insurance, business expense insurance or other disability insurance that will be replaced following the issue of the requested coverage.

SOLO Loan insurance

Financial evidence guide: SOLO Loan Insurance
Monthly amount $	Policyowner type
Monthly amount $	Corporation, trust or other entity	Individual
3,000 and less including in-force*	No financial evidence	No financial evidence
3,001 + including in-force*	Financial statements for the last completed year	Federal income tax returns for the last 2 years Financial statements for the last completed year

Note:

*The monthly amount requested on the illustration must be added to the insured's in-force insurance amount. When calculating in-force insurance, you should not include the income insurance, business expense insurance or other disability insurance that will be replaced following the issue of the requested coverage.

Monthly amount $	Current employment situation
Monthly amount $	Employee	Self-employed worker \| Self-employed worker on commission \| Partners \| Owner of a business corporation / Corporation (Inc) \| Agricultural producer
Income Enhancement 20%	n/a	Federal income tax returns for the last 2 years Financial statements for the last completed year
3,500 and less including in-force*	No financial evidence	No financial evidence
3,501 + including in-force*	No financial evidence	Federal income tax returns for the last 2 years Financial statements for the last completed year

​Financial underwriting requirements

​Life insurance

Personal insurance​

Business insurance

Critical illness

Personal insurance

Business insurance

Disability insurance

SOLO Disability income

SOLO Disability Income

SOLO Loan insurance

SOLO Loan Insurance

Advertising banner

Financial underwriting requirements

Life insurance

Personal insurance