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FAQ

Workplace Life Insurance: What More Do I Need?

The one thing to know about workplace life insurance is that it has an expiry date: the day you stop working for this employer. So, the most important factor to consider is, how long do you want your coverage to last? If you retire at age 65 your workplace life insurance plan ceases. Consider viewing your workplace insurance as “term insurance” and perhaps supplement it with permanent coverage.

Why Do I Need Life Insurance?

Put simply, life insurance is meant to replace the income that you contribute to your family in the event of your death. If you’re dead, you aren’t providing any money to your family’s current or future living expenses, hence, the need for coverage. How would your family survive financially if something were to happen to you tomorrow?

What Is Permanent Insurance?

Unlike term insurance, permanent insurance is meant to cover you for your entire life; hence, it’s “permanent”. There are two payment options. First, you can pay for the rest of your life (until age 100). This is the cheaper option, but I know what you’re thinking…. for the rest of my life??? That sounds like a long time. The second option is “paid up permanent insurance”. Like term insurance, there is also a first payment date and a last payment date, but unlike term insurance on the last payment date the policy is said to be “paid up.”

Paid up permanent insurance means that you paid your premiums for a defined period, 10 or 20 years for example, and you are now covered until you die without having to pay another nickel!

What Is The Difference Between Term Life Insurance and The "Creditor Protection Insurance" I Got From My Bank?

Many borrowers may hear of “creditor protection insurance” when they take a mortgage or a large loan from the bank. Consider the following and see if term life insurance is a better option:

Once you are approved for term life insurance by an insurance company and sign the contract, you’re covered. This is because the insurance company considered many factors such as your age and overall health in a process called underwriting. Banks will usually underwrite “post-claim” meaning after death they will determine if you were insurable. If you were “uninsurable” your beneficiary will only receive an emotionally devastating surprise and the return of your premium payments.

With term insurance you choose your coverage amount and it will never decrease. A bank only covers the exact amount of your debt, which decreases as you pay it down, but of course, even though your coverage decreases, they don’t decrease the price they are charging you for it!

You own the term insurance policy and it is not tied to a specific debt or obligation. If you find a better mortgage rate at a different bank, your term life insurance can cover that debt without any need to reapply for coverage. “Creditor protection insurance” is held by the bank and you cannot take it with you if you start a new mortgage at a different bank, for example.

How Much Life Insurance Do I Need?

It depends on how much you earn, the goals for the family and when you plan to die. Admittedly, the last item is generally hard to know. But, you should start asking yourself these questions, which is not always pleasant because you have to imagine yourself dead:

What are the financial impacts your loved ones will face when you die?
If you have kids, how long before they become independent? Are they planning to go to university?
Does your family have large liabilities such as a mortgage that will still need to be paid if you’re not around?
What taxes are payable upon your death? (Yes, taxes are owed upon your death!)
How much will your funeral cost? You may want to consider how grand and lavish a funeral you want to have.
These are only a few considerations – trust me, there’s lots more – but it’s a start.

What Is Term Life Insurance?

Term life insurance is the most common type of life insurance. You are entering into a time-based contract that in exchange for your fixed monthly payments – called premiums – the insurance company will pay a set amount to your beneficiary if you die while the contract is in place. It’s “term” because the premium amount is for a set period, say 10 or 20 years, and the premiums will never go up for the duration of the term.

If you die while your policy is in force your beneficiary gets a cheque. If you die after the policy expires (most policies expire at 80 or 85 years old), your beneficiary gets nothing; this is one of the disadvantages.

Term insurance is generally the most affordable kind of life insurance, so if you had a “short-term” need that you wanted to protect, for example, 20 year mortgage, you can take advantage of the lower cost of the term insurance.

Which Is Better, Term Insurance or Permanent?

Off the top, permanent insurance seems like the better deal. Let’s put it this way, it’s a more robust product and because of this the price is higher. But they both have their value depending on your need. Many people consider purchasing a blend of the two.

FAQ for Critical Illness

What illnesses are covered under critical illness insurance?

Investing in critical illness insurance is a great way to help ensure you remain financially stable should you suffer a critical illness or become diagnosed with a life-threatening disease. By investing in critical illness insurance, you’ll receive a one-time lump-sum financial payout to help you cover everything from daily living costs to recurring medical expenses. Most insurance providers will cover a range of illnesses and diseases. However, the specific illnesses covered will depend upon the area in which you live and your insurance company.

Desjardins Financial Security Independent Network covers 26 illnesses with their critical illness insurance plans, including brain tumors, cancer, heart attack and stroke, aortic surgery, heart valve replacement, bacterial meningitis, motor neuron disease, deafness, loss of limbs, loss of speech, paralysis, severe burns, and more. For a complete list, go here.

To learn more about the insurance plans available from Desjardins Financial Security Independent Network, contact them online today or call (416) 695-1433.

Does critical illness insurance cover pre-existing conditions?

Critical illness insurance can be a good way to protect you, your family, and your business should you ever be diagnosed with a critical illness or life-threatening disease. It offers a one-time lump-sum financial payout should you suffer from a worst-case-scenario event. However, you may be wondering if you can obtain critical illness insurance if you suffer from a pre-existing condition. Generally speaking, before signing up for a critical illness policy it’s important to research potential insurance providers and determine what their definition of “pre-existing condition” and “critical illness” is specifically.

In some cases, you may find that an insurance provider is willing to cover you even if you’ve suffered from a previous critical illness, such as stroke, heart attack, or cancer. But often, due to being a high-risk case, premiums may be more expensive and some providers will reserve the right to deny you coverage completely.

If you have additional questions about whether or not critical illness insurance is right for you, contact the team from Desjardins Financial Security Independent Network. Contact them online today or call (416) 695-1433.

How much does critical illness insurance cost?

Unfortunately, aging is a part of life, and the older we get, the more prone we are to develop critical illnesses or be diagnosed with life-threatening diseases. Without the proper safety net in place, such emergencies can quickly and easily become a financial burden. For this reason, many choose to invest in critical illness insurance to help ensure that should the unthinkable occur, their daily living expenses and medical costs will be covered. However, you might be curious to learn how much this type of insurance coverage costs.

Although the precise amount for critical illness insurance will depend upon your insurance provider, there are some notable factors that will affect its costs. Firstly, the younger and healthier you are, the less your insurance premiums will be, which is why many choose to purchase critical illness insurance earlier rather than later. Other factors that will influence cost include your medical history, the amount of coverage, as well as the number of illnesses covered by the policy.

Before signing up for a critical illness insurance plan, be sure to take into account your income, financial obligations, dependents, and your current healthcare needs. For additional questions, contact the team from Desjardins Financial Security Independent Network today online, or call (416) 695-1433.

Do I need critical illness insurance?

Being diagnosed with a life-threatening disease or critical illness can be a worst-case-scenario for many. However, life can be unpredictable, which is why it’s always better to plan for the unthinkable well in advance. Critical illness insurance can provide a lump-sum payout that can help you remain financially stable. Some of the most common critical illnesses include heart attacks or strokes, brain tumors, cancer, bacterial meningitis, deafness, being in a coma state, and much more. For a complete list of covered illnesses, go here.

If you’re unsure of whether you need to invest in critical illness insurance, ask yourself what type of financial strain would be placed upon you and your family should you suffer from an illness that prevented you from working. Often, traditional insurance plans don’t cover things like day-to-day expenses, making critical illness insurance an attractive option.

To learn more about whether or not you’ll benefit from critical illness insurance, contact the team from Desjardins Financial Security Independent Network today online or call (416) 695-1433.

Can I qualify for life insurance if I have a critical illness?

In many cases, those already diagnosed with a critical illness may find it difficult to find a life insurance provider, which is why it’s so important to ensure you’re protected as you get older. In some cases, you may find that investing in a hybrid life insurance and critical illness insurance plan may be the best option. However, your acceptance will depend upon your insurance provider, as well as your medical history, both of which will affect your monthly premiums.

A hybrid plan can be a great option for many because it combines both life and critical illness insurance, expanding your range of coverage. Under such a plan, a lump-sum tax-free financial payout is available upon either diagnosis of a critical illness or death. This means that you and your family will be able to remain financially stable, meeting daily living expenses and other obligations, such as paying monthly medical bills or meeting funeral expenses. There is a range of covered critical illnesses, such as stroke, heart attack, brain tumor, etc.

To learn more about whether you can qualify for life insurance after the diagnosis of a critical illness or receive a hybrid plan, contact Desjardins Financial Security Independent Network (DFSIN) Toronto West online or call (416) 695-1433.

Is a critical illness insurance payout to you considered a taxable benefit?

No, a critical illness insurance payout to you is not a taxable benefit. This means that you’ll be able to receive the full value of your policy payout to help cover expenses and living costs if you are diagnosed with one of the policy’s covered critical illnesses or life-threatening diseases. You can spend this money in whichever way you wish, whether it’s to cover you and your family’s living expenses, pay for monthly doctor visitors or cover medication costs.

If you’re in need of a quality critical illness insurance provider, contact the team from Desjardins Financial Security Independent Network (DFSIN) Toronto West today. With their plans, you can ensure that you’re able to cover all expenses in case of an illness.

Contact them online today or call (416) 695-1433.

How long does a critical illness insurance policy claim take?

Critical illness insurance is a great way to protect you, your family, or your business should you be diagnosed with a critical illness or life-threatening disease that prevents you from working. However, you may be wondering how soon your coverage will kick in and when you’ll receive your financial payout if you experience an illness/disease. The length of time it will take to receive a payout on your claim will depend upon a variety of factors. However, usually, your claim can be paid out within an average of five business days, allowing you to plan for the future.

If you’re looking for quality critical illness insurance, the team from Desjardins Financial Security Independent Network (DFSIN) Toronto West can help. With their coverage options, you’ll be able to receive a one-time lump-sum financial payout that is tax-free. This money can then be used in whichever way you please, to pay for daily living expenses, medical obligations or medication costs.

For more information about critical illness insurance, contact Desjardins Financial Security Independent Network online today or call (416) 695-1433.

Does health insurance cover a critical illness?

When it comes to critical illnesses, traditional health insurance may not cover every single illness, which is why many choose to invest in critical illness insurance or a hybrid health care plan. Critical illness insurance covers a range of different illnesses, including stroke, heart attack, brain tumor, coma, bacterial meningitis, and many more. One of the leading benefits of critical illness insurance is that it provides a tax-free, one-time lump-sum financial payout should you be diagnosed or suffer from one of 26 covered illnesses.

If you’re in search of quality critical illness insurance, the team from Desjardins Financial Security Independent Network (DFSIN) Toronto West can help you find a plan that works for you. With the right critical illness plan, you’ll be able to keep your business running should you be unable to work or care for family members in need.

To learn more about their critical illness insurance plans, contact Desjardins Financial Security Independent Network today online or call (416) 695-1433.