Whether getting married, starting a family, a business or buying a home, Term Insurance helps you to protect what is important to you.
Term Insurance is the most affordable type of insurance, which can be helpful to cover temporary needs and ensure a tax-free payout to the beneficiary at the time the client passes away.
"Kevin, aged 29, is an IT professional living with a 26-year-old graphic designer wife, Mandy and two daughters.
Recently, the couple purchased a 1.5 million dollar house. The family income is sufficient to support a healthy lifestyle. If one of them were to die, the survivor would have a tough time making those mortgage payments and keeping up the lifestyle.
To ensure that the survivor could repay the Mortgage and keep the house, Kevin and Mandy took a 1.5 Million dollar joint-first-to-die Term policy naming each other as the beneficiaries.
So, if Kevin dies, Mandy will receive the death benefit, which she can use to repay the outstanding Mortgage."
Assuming Kevin(29) and Mandy(26) are healthy and Non-smoker, the coverage amount is 1.5 million dollars,term-10, and a joint-first-to-die premium of $93.15/Month.
Permanent or Whole life insurance can provide lifelong protection for the risk that does not expire. The premiums for the Whole life insurance typically remain the same over the lifetime of the life insured.
"Martin and Sandy have already purchased a Term policy to cover their Mortgage risk. However, they are aware of the expiry of their coverage at the end of the policy term.
They purchased a Whole Life policy for themselves to ensure lifelong coverage.
They may use it as an Estate Planning tool, potentially borrow money from the Cash Value of the policy, and leave a legacy for their daughter or some donation to their favourite charity"
Would you risk liquidating your assets to meet expenses for treatment and rehabilitation?
'Raj, aged 40, is now a senior manager in his company. One morning, he found the right side of his body paralyzed.
He was rushed to the hospital, where he was diagnosed with a stroke that rendered him paralyzed.
Though he survived the stroke, the recovery from paralysis could be a long and expensive journey.
His wife, Mandy, has to take leave from her work to look after him. It impacted the family both emotionally and financially.
But fortunately, Raj has Critical Illness Insurance on him worth $100,000, which paid the claim.
The family used the money for his rehabilitation, modifying the car and house, and continuing to pay for the mortgage.
If you have to choose an Occupation and benefits, which one will you choose?
"John is an independent Transport Owner- Operator, running his business successfully until the day he got seriously ill. He was admitted to the hospital, got treated, and is now being rehabilitated.
He not only has to spend on the treatment, but the rehabilitation could cost even more and may take a long time. John suffered both health and financial loss. He has to close his business until he recovers and is able to work again. But the Disability Insurance policy comes in handy at this time of crisis. The plan not only paid monthly disability benefits to John, but it also took care of his Business Overhead Expenses like rent, a replacement driver, accounting fees, and interest on the debt."
The provincial health card covers a large number of medical emergencies and procedures, but there are still some of the expenses that have to be paid by you.
"Tina, a florist, is a healthy 29-year-old female running her business successfully. She is a fitness freak and never misses to exercise.
Unfortunately, during one fitness session, Tina broke her leg and had multiple fractures. She knew that complete recovery was going to be a long process. Tina has to use crutches and take physiotherapy sessions until she recovers. This injury wreaked havoc on her health as she developed diabetes while recovering from her injury. Tina now regrets her decision not to buy Personal Health Insurance that could have paid for her rehabilitation (Physiotherapy sessions), medical equipment (crutches), and prescriptions for her diabetes."