Protection Plans
“Protection plans are utilized to protect yourself and those you love. It is never a “good time” to think about the “what ifs”, but it is so important to.”
Life Insurance – Protecting your family and loved ones.
Life Insurance products pay your beneficiaries a cash benefit (which is tax free) upon death. Like most financial products, there are different types of life insurance products to suit the needs of each unique situation.
Term Life Insurance
Most simple and affordable form of life insurance, paying out only if the death occurs during the term of the policy (i.e. Term 10, 15, 20, 25, 30)
Depending on the term length of the policy, the premium will stay in place for that length of time, after which, the policy renews (sometimes at higher premiums)
Permanent Life Insurance
Permanent or Whole Life Insurance pays a death benefit to your beneficiaries upon death – whenever that may be! There are four main types of Permanent or Whole Life Insurance:
Term 100
Providing maximum security of lifetime coverage with various amounts and premiums that stay intact for the duration of the policy
T100 Guaranteed Permanent Life Insurance
Universal Life
This product combines a permanent life insurance aspect with various investment options, which can be tailored to financial situation, risk, etc.
Non-Medical (Simplified)
This product is an option for someone who is seeking permanent life insurance coverage, and who may simultaneously have a less serious health condition.
Case study Nick, Mortgage Insurance with Express Elite
A plan for your child
When a child becomes sick, it affects the whole family. On top of the emotional impact, a serious illness can put your family’s financial plan at risk as you focus on your child’s care and recovery.
You can get a plan that helps meet your child needs at all stages of life with the option to receive a return of the premiums paid if there is no claim for a full payout benefit.
They grow up so fast ... a plan that can grow with them.pdf
Hard to insure solutions
They grow up so fast ... a plan that can grow with them.pdf
Whole Life
Whole Life insurance, also known as Permanent Life insurance is put in place to protect and cover you for the duration of your life. With Whole Life insurance, you have the comfort of knowing that your premium will be locked in and in the event of death, your beneficiaries will receive a tax-free payment. There are 3 types of Whole Life Insurance products:
Participating Whole Life Insurance
This product offers the benefit of an investment embedded in the whole life coverage. The investing aspect of the product is in most circumstances left to professionals to maximize the policy.
This product is a good solution for those who wish for their life insurance policy to be a tax-deferred investment and at the same time, are not interested in managing the investment themselves.
These plans offer the following features:
- Lifetime protection
- Guaranteed cash values/premiums
- Potential annual dividends
- Tax deferred growth
- Tax-free death benefits
Non-Participating Whole Life Insurance
This product offers the benefit of a whole life insurance product but with more simplicity, and usually, a lower premium. They provide lifetime protection, fixed premiums and in some situations, they can be paid in a set number of years. There is no option for annual dividends.
These plans offer the following features:
- Lifetime protection
- Locked in premium rates
- Paid premiums and benefits paid to beneficiary upon death (premium will not earn interest)
Enhanced Life Insurance
The enhanced life insurance product provides consumers with enhanced protection allowing the policy owner to select a base insurance amount, which has a premium embedded in it. This option allows the policy owner to have the option to choose an additional enhanced amount of insurance that is less than the calculated maximum amount for the life insured.
The additional enhanced insurance is comprised of One Year Term insurance as well as Paid-Up Additional Insurance. The One Year Term insurance is an annual renewable term and is based on the age, gender, risk class, guarantee period selected and duration of the base plan. One Year Term costs are adjusted annually as part of the overall process.
When dividends are allocated annually, a portion will be for the One Year Term and the remainder purchased the Paid-Up Additional insurance. Over the course of the policy, the One Year Term will gradually be replaced by the accumulated Paid-Up Additional insurance. Once all of the One Year Term insurance has been replaced, the dividend conversion point has been attained and future dividends earned are used solely to purchase Paid-Up Additional insurance, which increase the amount of the death benefit.
Living Benefits
Unfortunately, I fell victim to suffering a severe health issue, and at the same time, a serious financial setback as a result… we all need to heavily think about how changes in our health can have a direct influence on our financials.
Health Insurance protects your financial situation from the various costs that accompany health-related issues that may not be covered by the Canadian government (for example, live-in care, medical equipment or prescription drugs that are not covered).
There are various types of health insurance products on the market including:
Personal Coverage
Personal health insurance provides protection and coverage for health-related expenses that are not covered by the Provincial Government. If you do not currently have health benefits through an employer or you would like additional benefits that are not currently offered by your current health benefits plan, personal health insurance products could be a great alternative.
These includes plans that suit your prescription drug, dental and any additional health or medical needs.
Home Care Assistance
While we are young and able, it is taken for granted that we are able to take on daily activities with no issue. This can change suddenly and drastically.
These insurance products are designed to provide an income benefit should you become unable to care for yourself (i.e. loss of 2 out of 6 activities of daily living).
MyDignity:
MyDignity is an insurance product and solution for long term care health issues. MyDignity is an alternative to traditional long term care insurance and has its own underwriting process, making the product easier to obtain and more affordable. Underwriting consists of a short health declaration which allows for a 95% approval rate and immediate acceptance. This a great product for those individuals who have been previously declined, have less-serious health related issues and/or require a more affordable solution.
Critical Illness
These products are designed to cover costs associated with encountering and surviving a critical or life changing illness (i.e. cancer, cardiac, etc.). Survival rates are increasing with advances in medicine and technology, and at the same time, recovery is often times burdened by significant costs. The great element here is that, should you survive the illness, you receive a lump sum payment, yours to use in any which way you decide.
These includes plans that suit your prescription drug, dental and any additional health or medical needs.
Disability
What happens if you wake up one morning and have no feeling or ability to move your arms any longer? What happens if you get into a motor vehicle accident leaving you unable to work for a few months?
Disability insurance replaces a percentage of your income should you become disabled and unable to earn a living (short term or long term). There are several types of disability insurance coverages, including both individual and group plans, government plans and benefits under CPP.
For graduating professionals (doctors, lawyers, engineers and others) many insurance companies offer special programs which include discounts on the premium and other incentives.
A plan for your child
When a child becomes sick, it affects the whole family. On top of the emotional impact, a serious illness can put your family’s financial plan at risk as you focus on your child’s care and recovery.
You can get a plan that helps meet your child needs at all stages of life with the option to receive a return of the premiums paid if there is no claim for a full payout benefit.
They grow up so fast … a plan that can grow with them.pdf