The joys of parenthood and the pleasures derived from a happy and loving family can never be replaced by money or material goods. The need to protect the standard of living and the quality of life that we enjoy normally means that we need a source of revenue in the event or loss of a parent. The most affordable way to protect against this type of loss is through the purchase of a Life Insurance Policy. It has been often said that the last love letter you will ever leave your family will be in the form of a Life Insurance Policy. What message would you like to leave to your loved ones?
Family Protection
Life Insurance
A Life Insurance Policy is a legal and binding contract made between a life insurance company and a policyholder which will pay a predetermined lump sum amount upon the death of an insured individual sometime in the future. This policy will stay in effect as long as the premium, which is agreed upon, for the required interval. A Life Insurance contract can vary in type and amount based upon the need or purpose of the policyholder. Some examples of how life insurance can be used are:
- to protect the value of a mortgage
- loss of income
- estate tax
- final expenses
The most effective way to ensure proper protection is to consult an independent insurance broker who can tailor a solution to satisfy your needs. Although the “one size fits all” approach has been a common practice, it is only through consultation that a proper conclusion can be made so that protection can be maximized in a cost-effective manner.
If you have questions regarding existing insurance, or you are looking for information to obtain coverage, please contact us here.
Term Insurance
This is insurance purchased for a specific period of time. This type of insurance does not accumulate any cash value upon expiry of the term. Usually, the term can be renewed for a substantially higher cost. The policy may also be converted to a permanent type of policy. Both the option to renew or convert will have an expiry date which will leave the insured without coverage beyond these dates. This is usually the cheapest form of life insurance initially but becomes progressively more expensive as you get older.
Whole Life Insurance
This type of insurance covers an individual for the entirety of their life at the same annual cost. Whole life insurance has a cash value component which may result in the policy being paid up and not requiring further premium payments to keep the policy in force. This type of insurance is usually the most expensive at the time of issue.
Universal Life
This insurance is similar to whole life insurance in that it provides permanent coverage without the cash value component. Universal life, however, has a unique internal investment component which allows the insured to deposit money within the policy in a tax-sheltered manner. This allows for the accumulation of cash build up through numerous different investment vehicles.
Mortgage Insurance
This insurance is a form of life insurance designed to eliminate the burden of the loan bade by the borrower to purchase a home. Unlike loan insurance purchased from a bank, mortgage insurance purchased from a broker is underwritten at the time of application, therefore eliminating unnecessary shock or surprise due to an unexpected death.
Watch this short video on the hidden dangers of purchasing mortgage insurance through a bank. This video was released through CBC Marketplace.
Health Insurance
This insurance encompasses insurance designed to reimburse individuals or families for expenses incurred that are not covered by traditional Medicare.
Components of Individual Health Plans are:
Individual Health Plans
This is an insurance policy designed to reimburse an individual or family for expenses incurred for eligible medical procedures that are not covered under the Canadian Health Care System.
Enhanced Health Coverage
This is the basic component of most individual health plans. This plan provides basic coverage for a hospital stay, ambulatory care, and specialized Practitioners such as Chiropractors. It should be noted that most plans carry maximum limit on an annual basis.
Prescription Drug Coverage
A component of a health plan designed to reimburse eligible expenses for medications prescribed by an approved physician. These components vary from plan to plan in the range, scope and capacity of coverage. Some plans have an annual limit which can be a great hindrance in the event of a serious illness such as cancer.
Dental
A component designed to reimburse eligible expenses incurred for dental procedures. These components vary from plan to plan in the range, scope and capacity of coverage. Most of these plans cover basic procedures with a small allocation for major work. Almost all individual have maximum thresholds for any procedures and an overall maximum reimbursement per annum.
Critical Care
This component allows for a one-time lump sum payment in the event of a serious illness such as cancer, heart attack or stroke. The scope of coverage is usually narrow with regards to illnesses that are covered.
Assured Access
This is a newly developed product which allows individuals who have present-day group health benefits to apply for the future purchase of an individual health plan based on today’s insurability. It takes a snapshot of your current health situation and it ensures the opportunity to purchase a future program without medical evidence. Any current conditions will be excluded from this future coverage.
Travel Insurance
This provides medical coverage for persons traveling outside the province or country. It is fairly comprehensive in coverage and usually carries a maximum lifetime benefit. It does carry some limitations for pre-existing conditions.
Critical Illness:
Provides a lump-sum tax-free benefit to help support you financially if you are diagnosed with and survive a covered critical illness. The two types of critical illness coverage are:
Basic Critical Illness
Covers you for the most common critical illness such as:
- Heart Attack
- Stroke
- Cancer
- Kidney Failure
Enhanced Critical Illness
Building on the basic coverage, enhanced coverage blankets a broader scope of illness and diseases. They are as follows:
- Blindness
- Coronary Artery Surgery
- Major Organ Transplant
- Multiple Sclerosis
- Paralysis
- Alzheimer’s Disease
- Occupational HIV
- Parkinson’s Disease
- Burns
- Loss Of Speech
- Deafness
Disability Insurance:
Disability insurance can provide you with financial security by replacing a portion of your earnings when an accident or illness causes you to become disabled and unable to work or earn an income.
Click here to view the Disability needs Calculator.