Insurance & Asset Protection
Seize the moments that make life worth it. Insurance protection can help give you the confidence to embrace every opportunity to live each day to the fullest.
What is personal insurance?
There are many types of insurance, but personal insurance is a contract that provides a binding guarantee that compensation will be paid in case of an injury, illness or death.
When do you need insurance?
Since no one’s circumstances are the same, their insurance protection shouldn’t be either. Generally speaking, insurance is a good idea if someone depends on you financially.
Buying a home
It’s an exciting milestone. Term life insurance can help protect your investment.
Child on the way
There’s nothing more rewarding than starting a family. Make sure they’re protected
Marriage bells ringing
Make sure you’re both protected as you start your life with the person you love.
Life insurance
Use it to help protect yourself and the people that you love and, in some cases, grow your wealth.
Affordable for the short term
Term life insurance can be cheaper than a cup of coffee a day and provides coverage for a set period of time. It’s a great solution to cover expenses that have an expiry date, like a mortgage
Coverage for life... that can grow your wealth
Make sure you’re both protected as you start your life with the person you love.
1.Critical Illness Insurance
Coverage when it counts
Focus on your recovery knowing that you have money to help with your expenses if you’re diagnosed with a serious illness.
Tax-free payout
A one-time benefit payment that you can use for whatever you need.
Health experts
World-renowned specialists can help you and your family at any time for any condition.
Additional support
Get counselling and other services from professionals during your recovery.
What is critical illness insurance?
Critical illness can give you a tax-free payment if you’re diagnosed with a serious condition. Your contract will define which conditions you’re covered for, but some examples include cancer, heart attack or stroke.
How does it work?
· Choose the coverage amount you want.
· Pay your premium.
· File a claim if you’re diagnosed with a critical illness.
· Receive your payment. You may have to wait a set period of time depending on your condition.
It’s more than just a payout
Coping financially with an illness is just part of the picture. Having access to emotional support and medical treatments can help your recovery.
Expert medical help
Get access to the top 5% of specialists in their fields. They can:
· Provide a second opinion
· Help understand medical conditions
· Explain treatment options
· Help navigate the health care system
Additional support
You and your family can get professional help to deal with the impact of your illness. They can provide:
· Counselling services
· Family support services (child care, home care)
· Legal and financial consultations
· Nutritional advice
Why do you need critical illness insurance?
It’s more common than you think
A serious, life-altering illness affects one in three Canadians in their lifetime.
Cover daily costs
Use your payout to help with your expenses while you recover.
Protect your retirement savings
Don’t dip into your RRSP or other investments to pay for additional medical costs.
Focus on your recovery
Concentrate on getting healthy knowing your benefit payment can help with your finances.
2.Disability Insurance
Protect your paycheque
Disability insurance works when you can’t. It can give you tax-free monthly income to help pay expenses if an illness or accident stops you from working
Monthly income
Payments replace part of your paycheque each month.
Guaranteed
Guaranteed rates for your coverage until age 65.
Personalized
Customize your plan to suit your personal needs.
What is disability insurance?
It can give you a tax-free monthly payment to help replace your income and cover your expenses if an illness or injury keeps you from working.
While a disability can often be visible to the naked eye, not all disabilities are so easily recognized. Chronic pain or a mental health issue can also qualify as a disability.
How does it work?
· Choose the amount you want and add optional benefits to customize your coverage.
· Pay your monthly premium.
· File a claim if you become disabled.
· Receive your monthly payments when the waiting period ends. The waiting period is the number of days from the date you’re disabled until the benefit start date.
· Your payments stop when your benefit period ends or you return to work.
Why do you need disability insurance?
It’s more common than you think
Up to 40% of Canadians become disabled for 90 days or longer before age 65.
Replaces most of your paycheque
Potentially receive up to 80-90% of your take home pay.
Protect your retirement savings
Disability insurance can help you meet your financial obligations so you may be able to avoid dipping into your retirement savings.
Protect your most valuable asset
Your ability to earn an income over a 30- or 40-year career, is your most valuable asset. Here’s an idea of what you could earn over the rest of your working life based on your age and current salary. This chart assumes a 2.5% raise every year and that you’re working to age 65.
$70,000
$90,000
$120,000
$150,000
$200,000
$250,000
Age 30
$3,844,975
$4,943,539
$6,591,385
$8,239,231
$10,985,641
$13,732,051
Age 40
$2,391,043
$3,074,199
$4,098,932
$5,123,665
$6,831,553
$8.539.441
Age 50
$1,255,235
$1,613,873
$2,151,831
$2,689,789
$3,586,385
$4,482,981
How much does it cost?
Premiums often range from 1-9% of your salary, but each case is different. Here are some factors that can affect cost:
Coverage amount
The more you'd like to receive, the more it will cost
Benefit period
It'll cost more the longer you want to receive payments
Waiting period
Your premiums will be less expensive if you're willing to wait longer to receive payments
Age
Disability insurance may be less expensive when you're young
Health
Your costs will be lower the healthier you are
Occupation
if you have a dangerous job, your premiums can be higher.
How much income can you get?
The following chart shows the maximum amount you could receive tax-free each month if you faced a disability. These are just estimates – the amount you’d actually receive depends on specific circumstances, like your age and occupation.
Annual income
$35,000
$50,000
$100,000
$120,000
$140,000
$200,000
$300,000
$500,000
$1,000,000
Maximum monthly benefit
$2,200
$2,975
$5,200
$5,925
$6,625
$8.550
$11,350
$16,050
$25,000
What does the government give you?
You can get disability coverage through the Canada Pension Plan (CPP) and Quebec Pension Plan (QPP) but they provide limited benefits.
Strict definition
You must “have a severe and prolonged mental or physical disability” to qualify for CPP disability benefits. You may be able to get disability coverage through one of our insurance providers, under a more relaxed definition.
Lower monthly benefit
The CPP’s average monthly benefit is $966.43 and the maximum in 2019 is $1,362.30
Do you need disability insurance if you have it through your employer?
Group insurance is a great start, but it usually only provides basic coverage. A personal disability policy complements group insurance – together, they can help protect you, your family and your lifestyle should the worst happen
How much coverage do I get?
How flexible is it?
Can I change my coverage?
What happens if I leave my employer?
How much does it cost?
Will the cost ever change?
Annual income
Coverage amounts are often limited
Your employer otten picks the coverage options
Typically, you can make changes once a year or if there's a life-changing event
Your coverage ends unless there's an option to convert to individual coverage
Typically, it's low cost
Costs can change every year
Maximum monthly benefit
You choose your coverage amount
You choose the coverage amount and how long you need
Yes, you can adjust coverage
Your coverage stays the same because it's not tied to a job or membership
Typically, it's a higher cost than group coverage
Costs stay the same for the duration of your policy
3.LifeInsurance
A financial safety net
Help reassure your loved ones that they will be taken care of now and in the future.
What is life insurance?
Life insurance provides whomever you choose with a one-time, tax-free payment when you die, as long as you continue to pay your premiums.
There are different types of life insurance, and different ways to make it work for you. It’s not only to protect your family. It can also be part of your financial plan, so you may be able to access money in your policy while you’re alive.
Starting a family
Help make sure the people you love are protected
Buying a home
Term insurance can cover debts like a mortgage
Getting married
Protect your spouse and the plans you’ve made for the future
What kind of life insurance are available?
There are 2 basic types of life insurance coverage: term and permanent. Each has unique features designed to meet different needs.
Term insurance
· Temporary coverage
· Lower cost
· Fixed payments
· Option to convert to permanent
Permanent insurance
· Lifetime coverage
· Higher cost
· Flexible payments
· Opportunity to build cash value
How much insurance coverage do you need?
Ideally, you want to make sure your debts are covered, so you don’t leave major expenses behind for your loved ones.
Here are a few things to consider:
· Your income
· Net worth
· Family needs
· Debt
· Other insurance you have
How much does life insurance cost?
It depends on the type of coverage you choose. Generally, term insurance is more affordable than permanent insurance. But there are a lot of factors that determine the cost of your policy, including:
Age
Generally, insurance is less expensive when you're younger
Health
Family history, chronic diseases and lifestyle can increase costs.
Gender
Women live longer than men on average, so insurance may cost less
Occupation
If you have a dangerous job, your insurance costs can be higher
Mortgage Insurance vs. Life Insurance: What meets your needs?
Which of your needs are met by each product?
If you’re buying a home or renewing an existing mortgage, you may be offered group insurance by your lender or broker. You put a lot of money towards your home, so it’s worth taking steps now to protect your investment.
Mortgage life insurance is typically marketed towards new homeowners who may be concerned that an unexpected death or illness could leave their loved ones with a large mortgage.
Personal life insurance can perform a similar function for you, but isn’t tied to just covering your mortgage. It’s designed to provide your beneficiaries with money in the event of your death. Its flexibility allows your beneficiaries to use the money for whatever purpose they wish. It’s an individual insurance product.
Mortgage life insurance is different from mortgage loan insurance. If you buy a house with less than a 20% down payment, the lending institution requires you to get mortgage loan insurance to protect against the risk of default. Mortgage life insurance, on the other hand, pays down or pays off the mortgage if the borrower dies.
What is mortgage life insurance?
Mortgage life insurance is coverage that you can purchase as a mortgage borrower. It’s designed to pay off or pay down the mortgage if you die. The insurance money payable under the coverage is always applied to the mortgage balance. This can help your family stay in their home, even if the primary income used to make the mortgage payments is no longer there.
Mortgage life insurance can be convenient to get at the bank when you’re arranging your mortgage. It may be easier to qualify for coverage than with personal life insurance. Mortgage life insurance also features an easy application process. Since mortgage life insurance is group insurance, this can result in lower premiums because the risk is spread out over a large group of people.
A benefit of having mortgage life insurance as part of your overall financial plan is that it can free up money you may get from other insurance policies. For example, the money you get through insurance from employer benefits or a personal life insurance policy could go towards expenses other than the mortgage, such as utility bills or university tuition for children.
Mortgage life insurance usually carries a 30-day “free look” period when all premiums paid can be refunded if you cancel your coverage. This lets you buy coverage right away and have time to review the insurance certificate. It also allows you to talk with an advisor to determine what type of insurance may be best suited for your own financial situation
How is personal life insurance different?
Personal life insurance pays money if you die while covered under the policy. With personal life insurance the homeowner typically owns the policy. Unlike mortgage life insurance benefits, this money can be used however your beneficiary or beneficiaries see fit.
For example, your family or other beneficiaries could use the proceeds to pay for post-secondary tuition, credit card debt, or other living expenses. Personal life insurance can be purchased for a term that is unrelated to the length of your mortgage. Your personal life insurance policy isn’t linked to your mortgage and won’t end because your mortgage is paid off, or you’ve moved it to another financial institution. The amount of your mortgage life insurance is linked to the declining balance of your mortgage and will go down over time, while your personal life insurance coverage typically won’t decrease.
Personal life insurance can work for you today and also be flexible to your changing needs. You may be able to make significant adjustments to a personal life insurance policy without heavy fees. It’s possible your family’s financial situation will change as you have children (or they grow up), and personal life insurance can more easily handle these new financial realities.
Main differences
Mortgage life insurance covers the balance of your mortgage, which decreases as the mortgage is paid down. Personal life insurance coverage, meanwhile, typically stays the same and isn’t linked to your mortgage.
Mortgage life insurance coverage ends when your home is paid off. A personal life insurance policy is unaffected by your mortgage ending, and can keep providing you and your family with protection in the years that follow. Mortgage life insurance provided through a financial institution is typically quick and easy to arrange, and usually only requires answering a few health-related questions. Buying personal life insurance, on the other hand, typically takes longer and involves delving into your medical history