Mortgage Life Insurance
Hence its actual name, Creditor Insurance. After all, it’s designed to protect the creditor in the event default on a loan or mortgage. And the problems it can pose are well-documented. Now of course we’re not saying it’s a bad idea to have insurance so that your mortgage is covered. It’s just that it’s a much better idea to buy the insurance you need through an independent insurance broker.
Here are just a few reasons why buying personal life, critical illness and disability insurance beats buying creditor insurance from your lender:
- You get to name the beneficiary, not the bank.
- You determine how to use the death benefit, not the bank
- You can take your insurance with you if you change lenders.
- With creditor insurance, the benefit declines as the mortgage balance declines; that’s not the case with personally held insurance.
- The cost of personally held insurance is often much less than what banks charge for their insurance.
- You get to design your plan, as opposed to the one-size-fits-all product offered through the bank.
One last thing to watch out for: certain lenders try and make it seem as though you have to buy creditor insurance from them in order to be approved for your mortgage. (Not all lenders do this, but some do.) If it happens to you, simply tell them No Thanks, give them your nastiest evil eye, then contact us. We will do everything possible to ensure you have the right insurance for your needs. (and if insurance is required for your loan, they’ll accept a personal policy.)
Basically, term life insurance is designed to provide cost efficient life insurance coverage that can be used to protect you, your family or your business. The premium you pay is fixed for the duration of the term, and (assuming you’re the policyholder) you decide the length of the term. Term lengths generally range from 10-30 years (Term to Age 100 is available, but it’s actually a no-frills version of permanent life insurance.).
But you know what? The best thing about term insurance isn’t the low cost or the simplicity (although those are pretty darn great). If you ask most insurance advisors, the best part of term insurance are the guarantees it comes with:
- Term contracts are guaranteed renewable at the end of the term. Let’s say you buy a 10-year term insurance policy, and you’re the insured. Then, sometime during those 10 years, you survive a heart attack or a life-threatening illness. You’ll still be able to renew your policy for another term regardless of your change in health up to the age of 75, 80 or 85 depending on the insurer. Renewal rates are built right into your initial contract — therefore the insurer can’t change those if you do suffer from a critical illness or injury which would make future insurance unattainable.
- Term contracts are also guaranteed convertible to permanent life insurance at any point in the future (up to age 65, 70 or 75 depending on the insurer). Again, change in health will not impact conversion rates.
That’s why when you buy term insurance, what you’re really buying is a huge, warehouse superstore-sized bulk crate of peace of mind. And if you’d like to have some for yourself, now would be the time to talk to us. Of course, if you’re thinking it can’t possibly be that simple, you’re right. That’s why we will also be happy to explain things like how riders work, if, when and how medical exams are required, and other things that don’t make for light reading.
Permanent Life Insurance
There are two main types of permanent life insurance:
Universal Life Insurance – this combines permanent life insurance with a tax deferred investment component. Part of your premium pays for the insurance policy, while part of it can go into an investment. As the investment within the policy grows and accumulates over time, it can cover off future premium requirements. There are often a number of investment choices available within a universal life contract. All of this is why most insurance advisors consider Universal Life (or UL’s, as we call them) to be one of the more creative kinds of insurance.
Whole Life Insurance – comes as Participating and Non-Participating policies, depending on the insurer. This combines permanent life insurance with a savings component. Participating policy holders have an opportunity to earn dividends from the insurance provider (hence the term “participating” — get it?) and non-participating holders have guaranteed future cash values within the policy. One big benefit of whole life insurance is that the dividends they offer can offer a nice steady rate of return, which is no easy feat in this day and age.
Who should look into Permanent Life Insurance?
- Those wanting insurance to cover their final expenses
- People with large tax and/or estate costs
- Retirees concerned about protecting their pension income.
- Businesses looking to fund shareholders agreements
- Those wanting to pre-pay their life insurance premiums
- People with higher than average income looking for tax sheltered investments
- Those wishing to use their life insurance for charitable giving
So if you’re one or more of the above, and you’ve never given much thought to permanent life insurance, that’s OK. We’ll just assume it’s because you never really had the benefits explained to you. So here’s your chance: contact us and find out what permanent life insurance can do for you.
Critical Illness Insurance
Critical Illness insurance provides you money when you need it most – following a diagnosis of cancer, heart attack, stroke, bypass surgery, Alzheimer’s, plus a number of other covered conditions (while these are standard covered conditions, some companies vary with their coverage details). It gives you the reassurance that you’ll have the means to give yourself peace of mind and the best possible quality of life:
- Continue making debt payments
- Have a loved one take time from work to assist in your recovery
- Maintain your independence if modifications are required for your home or vehicle
- Hire assistance at home
- Access cutting edge medical assistance or out-of-country opportunities for new medical procedures
Critical Illness coverage comes with different terms, return of premium options (i.e. getting half or all of your premium money back if you don’t make a claim) as well as permanent coverage options. Some of the carriers also provide for a conversion from a critical illness policy to a long-term care policy at a later date. Critical Illness insurance still pays the benefit even if you suffer a critical illness while receiving disability insurance.
So if giving yourself the best possible chance to recover from a serious illness — while maintaining your financial independence and your dignity — is an appealing thought, click here to contact us and find out more.
Unlike workers compensation benefits, disability insurance provides 24 hour, 7 day a week income protection against injury and illness. While Disability Insurance is a good idea for everyone, certain people have a particular need for it, including:
- Anyone who does not have coverage through a group insurance plan
- Self employed workers
- Small business owners
- Professionals (Doctors, Dentists, Lawyers, Accountants)
Disability insurance will pay up to two thirds of your gross monthly income on a tax free basis. Benefits are often payable for 2 or 5 years, or even up to age 65 depending on the plan you choose. For business owners, disability loan protection and business overhead protection is also available in the event of an injury to the key person of a small business.
There also are a number of options available with disability contracts, and we can help determine the best coverage for you. There are disability options for almost all job classes and occupations.
The financial requirements of long-term care are not fully covered by our health care system. This insurance will help offset the costs of the care you require, allowing you to be covered for any number of services you may need, including:
- Nursing care
- Rehabilitation and therapy
- Personal care (like bathing, dressing, eating)
- Homemaking services
- Supervision by another person
In addition, many Critical Illness Insurance policies now come with a built-in conversion option to Long Term Care Insurance (LTC). Therefore, an individual can maintain a Critical Illness policy and at some point in the future change coverage to LTC without additional medical evidence being required.
So keep hitting that treadmill, drinking that pomegranate juice, and getting your Omega-3’s. And in the middle of all that, find some time to talk to us about how to really improve your well-being in your golden years.
Non-Medical Life Insurance
We will examine all your options and help you determine your best route. If the non-medical insurance channel is best suited for you, we will work with the appropriate insurance provider to ensure your insurance needs are met.
And if you have questions, feel free to contact us.