top of page

 

4 types of insurance

We can't prevent the unexpected from happening, but sometimes we can protect ourselves and our families from the worst of the financial fallout.  Four types of insurance that most financial experts recommend include life insurance, disability insurance, critical illness insurance and health insurance.

Life insurance

The two basic types of life insurance are traditional whole life insurance and term life insurance.

Whole life insurance provides life insurance protection for your entire life- it does not expire.  It can be used as an income tool as well as an insurance instrument.  It includes a death benefit and also a cash value component.  As the value grows, you can access the money by taking a loan or withdrawing funds and you can end the policy by taking the cash value of the policy.


Term life insurance covers you for a set amount of time like 10, 20, or 30 years and your premiums remain stable during the term.  It is the most affordable type of life insurance and can work to cover the years during which a mortgage loan is outstanding or throughout your children's college years.


Life insurance is especially important if your family is dependent on your salary.  Industry experts suggest a policy that pays out 10 times your yearly income.

 

To know more differences between term life and whole life insurance, see Frequently asked questions.

Disability insurance

Disability insurance is designed to replace your income if you become disabled and are unable to earn an income.  Generally, it replaces between 60% and 85% of your income and the benefit is tax-free. 

 

Disabilities can result from a number of causes, for instance, an injury, a serious illness including mental health issue.  You can choose to protect your income from disability caused by injury or illness, or disability caused only by injury for which the premium is more cost effective and you don't need to go through a medical exam during the underwriting process.

Many employers offer disability insurance.  However, disability insurance plans are also available through a life insurance broker.  If you're self-employed, you should seriously consider getting disability insurance.  It will cover many of your business expenses if you're unable to work.  When buying disability insurance, make sure you understand the terms and conditions of the plan.  Ask your insurance broker about anything you don't understand.  Talk to an insurance broker to learn more.

Critical illness insurance

A diagnosis of illness is obviously difficult news to accept.  Fortunately, critical illness insurance will allow you to devote all of your energies to healing.  

 

It does not have to be as difficult to understand as most people make it out to be.  Basically you purchase a policy and if you are diagnosed with one of the covered conditions, the insurance company will send you a cheque tax-free which you can spend whichever way you wish. There are no limitations on the way you spend the money.  It is 100% yours and you can do what you wish with it.

Health insurance

Health insurance usually can be obtained through your employer.  If you don't have access to group health insurance or if you are self-employed, private health insurance can supplement your provincial health plans. 

 

There are a variety of Canada health insurance plans available.  One of the best ways to find the plan that is right for you and your family is to work with a professional insurance broker.  As healthcare costs continue to increase, so will the financial burden for consumers.  By purchasing health insurance, you can help protect yourself and your family from unforeseen medical expenses, and minimize the impact on your bottom line.  Register to consult an insurance broker.

 

Our brokers will get in touch with you in order to understand your insurance needs thoroughly, research among all insurance providers to find out the product that best suits your needs within your budget, as well as guide you through the entire underwriting process.  See why brokers.

bottom of page