Insurance

Term Insurance

Term Life Insurance is a life insurance plan that lasts for a certain term and then renews at a higher price. Most companies include 10 or 20 year term plans. This means that the premium will stay level for either 10 or 20 years dependant on the plan and then the premium will increase. The premiums generally increase 3.5 times their original price on the 10 year terms and 11 times their original price on the 20 year terms. The plans generally expire at the age of 80 or 85 with some companies. Term plans are generally better for a shorter term need and permanent plans for a long term need.

Permanent Insurance

Permanent Life Insurance Plans can generally be classified into two types. These Include Universal Life and Whole Life or Term 100.Universal Life, being the more popular of the two. The price of a Universal Life Plan and a Whole Life plan are generally the same, however, within a Universal Life Plan there is much more flexibility. You can choose to pay more than the cost of insurance and allow money to accumulate within your plan tax free above the death benefit. This money accumulates within different investment options and will add on to the death benefit tax free upon death. It can also be withdrawn. However, if the cash accumulated value is withdrawn before death the growth will be taxed at your marginal tax rate.

Critical Illness

Being faced with a critical illness can be one of the most difficult challenges for you and your family. A Critical illness plan will provide you with a lump sum of money should you be faced with a critical illness, to help with the expenses of providing day-to-day care for meeting your family’s needs.

Critical Illness policies provide a lump sum benefit at the pre-determined amount you choose. The funds can be used in any manner chosen by you. Below I have listed a few examples for which the funds can be used:

Pay for specialized medical treatment, nursing or child care.
Pay for out-of-country or treatment options not covered by the government.
Continue to allow you to fund your RRSP or any type of retirement plan.
Pay your mortgage, loans, other debts, taxes, hydro, gas, and water expenses.
With most plans you can apply for coverage up to the age of 65. The four most common illnesses faced by most people are Cancer, Heart Attack, Stroke, and Coronary Artery Bypass Surgery. With cancer far outweighing the other 3 illnesses based on claims.

Listed below are a few of the critical illnesses that most Critical Illness Plans will cover:

• Cancer
• Heart Attack
• Stroke
• Blindness
• Alzheimer’s Disease  
• Multiple Sclerosis
• Organ Transplants
• Kidney Failure
• Parkinson’s Disease
• Coronary artery bypass surgery
•  Deafness

With most plans the benefit is paid after a 30-day survival period for most conditions. Most plans will refund premiums to the beneficiary should loss of life occur.

Most plans provide “Best Doctors” service www.bestdoctors.com . The cost for this service is included in most plans. Best Doctors can help you find the right medical care by providing you with access to the best specialists worldwide who can answer complex medical questions.

Disability Insurance

If you become disabled, your ability to earn income may be compromised, and your ability to pay bills or save for retirement may decline. We are available to help you meet your income requirements through disability insurance, so you can concentrate on recovering from your disability and returning to an active life.

How can you insure against a loss of income? Disability income insurance can replace that lost income. Disability insurance pays an insured person an income when the person is unable to work because of an accident, injury or illness.

It is very important to get the proper disability income policy. Some policies pay benefits if you are unable to perform the duties of your own occupation. Others pay only if you are unable to perform any job suitable for your education or expertise. These policies can pay you from the period of 2 years up to age 70 depending upon which disability policy you choose.

A Disability Specialist would be glad to go through the different types of policies offered and find one that matches your needs.

The 1988 issue of Financial Advisor magazine in an article entitled, “Cast of Thousands” reports that the need for disability protection has increased. “The four leading killers of those 45 to 65 years old – hypertension, heart disease, cerebrovascular disease, and diabetes – now are more likely to disable than kill. Between 1960 and 1979, there was a 32 percent decline in death rate for all four maladies, but a 55 percent increase in chronic long term disability.” While life spans are getting longer, it’s due in large part to sustaining a lengthy disability instead of death.

Long Term Care

Canadians are living longer lives thanks to healthier lifestyles and medical breakthroughs. Yet as we age, we may lose our ability to independently care for ourselves. Provincial health plans may cover some of the costs for long-term care, but the majority of expenses are covered by families, causing financial hardship. Consider these statistics:
The cost for a long-term stay at a government-subsidized nursing home can be over $2,000 a month.
Privately-owned retirement residence stay can cost on average over $3000 a month for a semi-private room and over $4000 for a private room.

Your provincial health insurance plan will not cover the full cost of care at home or subsidized facilities. Moreover, your provincial plan will not cover the costs of living in a privately-owned retirement residency.

Long Term Care Insurance covers what your provincial health plan does not. This coverage ensures that the cost of long term care does not impact you savings and retirement income as well as become a financial strain on your loved ones. Long Term Care Insurance can cover expenses such as:

• Care by a certified nurse
• Rehabilitation and therapy
• Personal care & home care services (assistance with daily activities such as: dressing, cooking, cleaning)
• Supervision by another individual