Ask most financial advisors and they will agree that life insurance is an important part of a secure financial future. In case of an emergency, it will help protect your family, it will help pay off your mortgage and it can even serve as an inheritance for you children or grand-children. But, usually payment comes after you pass. What if you become seriously ill with a disease that isn't covered by your provincial health insurance? We asked Dawit Hamilton, regional sales manager of individual insurance with Desjardins Financial Security, for his opinion. "One solution is a hybrid term life insurance product that's paired with critical illness insurance," he said. "What's great about this solution is that it provides a life-time insurance protection along with a tax-free critical illness benefit following a serious illness diagnosis. It's an affordable complement to your existing life, disability or mortgage insurance portfolio."
How does it work?
Basically, the entire premium payment goes to cover the life insurance and the critical illness insurance. At the time that you sign your contract, you select the percentage amount (usually 25-100 per cent) that will be paid in the event of a critical illness. If you become diagnosed with a serious illness and are unable to work, the critical illness insurance will help pay for your day-to-day expenses, business debts if you're self-employed and other costs not covered by your provincial health care plan. In fact, it also provides legal assistance for situations of a civil nature. The remaining life insurance amount, if applicable, is payable to your beneficiaries or estate at the time of your death.
What illnesses are covered by this insurance?
Typically there are 20 illnesses and conditions that are covered, although some critical illness policies may offer more. The most common are: heart attack, cancer, Alzheimer's disease, coronary artery bypass surgery, stroke, multiple sclerosis and Parkinson’s disease.
Who should consider this product?
People aged 18 to 65 are eligible to buy this hybrid insurance solution. It usually provides $10,000 to $1,000,000 life insurance coverage, which expires at the age of 100. The premiums are fixed, guaranteed and may increase over time.
To learn more about this and other financial security solutions, speak to your financial advisor. Or for more immediate information, see Insurance for individual and business people.
Questions? Comments?