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Life insurance provides financial protection to your beneficiaries in the event of your death, typically in the form of a lump-sum payment.
The amount needed depends on your financial obligations, income, and future goals. A common rule is to aim for coverage that is 7 to 10 times your annual income.
There are primarily two types: term life insurance (coverage for a specified period) and permanent life insurance (coverage for life, including whole life and universal life policies).
Costs vary based on factors such as age, health, lifestyle, and the type and amount of coverage. Term life insurance is generally more affordable than permanent life insurance.
Yes, sometimes policies allow for changes such as increasing coverage, converting term to permanent insurance, or adding riders for additional benefits. Depending on the carrier there are different limitations and exclusions to what can be changed.
Premiums are influenced by age, health, smoking status, occupation, and the amount and type of coverage.
Beneficiaries need to submit a death certificate and any other required documents to the insurance company to process the claim.
Mortgage protection insurance is specifically designed to pay off your mortgage balance in full if you pass away during the term of the mortgage. It is directly tied to your mortgage loan and typically decreases in coverage as you pay down your mortgage principal. The benefit is paid directly to the lender to ensure the mortgage debt is settled.
On the other hand, term life insurance provides a lump-sum payment to your chosen beneficiaries if you die within the policy’s term, regardless of mortgage obligations. This insurance offers more flexibility as the payout can be used for various financial needs beyond just paying off the mortgage, such as living expenses, education costs, or other debts. Term life insurance policies are portable and not tied to a specific mortgage, allowing coverage to continue even if you refinance or move homes.
Critical illness insurance provides a lump-sum payment if you are diagnosed with a serious illness covered by the policy, such as cancer, heart attack, or stroke.
Coverage varies by policy but usually includes major illnesses like cancer, heart attack, stroke, multiple sclerosis, and organ transplants.
The amount needed depends on your income, expenses, and potential costs of treatment and recovery. It’s recommended to consider how much you would need to cover living expenses and medical costs.
Critical illness insurance provides a one-time lump-sum payment upon diagnosis, while disability insurance offers ongoing income replacement if you cannot work due to illness or injury.
Coverage for pre-existing conditions is often excluded, but it depends on the insurer’s policies and the specifics of the condition.
You need to provide medical documentation confirming the diagnosis of a covered illness. Once the claim is approved, you receive the lump-sum payment.
Some policies offer a return-of-premium option, where you can get back the premiums paid if no claim is made within a specified period.
Group benefits insurance provides health, dental, disability, and life insurance coverage to employees, often at a lower cost than individual plans.
Yes, premiums paid for group benefits insurance are typically deductible as a business expense in Canada.
Costs vary based on the size of the company, the types of benefits included, and the demographics of the employees. On average, it can range from $1,500 to $3,000 per employee per year.
Employees submit the required documentation, such as receipts or medical reports, to the insurance provider. Approved claims are reimbursed according to the policy terms.
Typical coverage includes health, dental, vision, life insurance, disability insurance, and sometimes critical illness insurance.
Offering comprehensive benefits can significantly enhance job satisfaction, loyalty, and retention by providing financial security and peace of mind.
Consider your budget, employee needs, and the specific benefits that will provide the most value. Consulting with an insurance advisor can help tailor a plan that balances cost and coverage.
Yes, group benefits plans can be tailored to fit the specific needs and preferences of your business and employees.
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