Life and Disability Insurance are the cornerstones of every sound financial plan.
HealthCover.ca can help you build that foundation with expert advice on how to best determine your life insurance needs, taking into account the effects of both taxes and inflation.
Before we recommend any products, we encourage clients to complete an insurance needs analysis using our advanced software programs. We help integrate your group and current life insurance programs with a new plan to ensure it will meet your financial security objectives. Remember, the primary goal of life insurance is to protect your loved ones.
Most financial experts agree that you should have enough life insurance to pay-of your debts, provide enough cash to settle your estate and provide money for unforeseen expenses and education.
Finally, you should have enough insurance to create a pool of capital that could be used to replace your lost income in the event of your death.
Sounds complicated? Its not if you have a broker on your side to help determine the right amounts of insurance.
Will you be injured during your career? The Canadian Life and Health Association says that a woman age 35 is about seven times more likely to suffer a disability than death before age 65.
Our firm helps employees, professionals and business owners protect their most valuable asset – their ability to earn an income. Most experts agree that you should have some level of disability insurance –be it an individual or group plan. Most plans have a start date of 30 to 120 days after a disability starts. The coverage is almost always for sickness and injury with coverage until age 65.
Group Plans are always less expensive than individual plans, but the latter have better terms and conditions and the premiums are usually locked in to age 65. Such private plans are excellent for self-employed people and the terms and conditions of the plan are guaranteed and can’t be changed by the insurance company. For professionals and executives, private plans offer an “own occupation” definition of disability. This means the insurance company can’t make you work in another occupation based on your experience and training. This is an important feature for a dentist or doctor. Beware of Association Disability plans, as the terms, conditions and rates for these group plans can and do change at any time.
In Canada, if an individual pays for his or her premium, the disability benefits are payable tax-free. If the company pays, the benefits are taxable and should be grossed up to reflect this fact. Check your group plan to make sure there isn’t a low maximum. If so, contact our company for a Disability Top-Up Plan.