Must watch – the reality of your mortgage insurance!
winning the loto? perhaps not
Here are some other facts from stats Canada
- 1 in 9 women are expected to develop breast cancer during their lifetime
- 1 in 12 men are likely to develop lung cancer during their lifetime
- 1 in 3 Canadians are likely to get cancer and survive
- chances of being diagnosed with cancer are higher than winning the lottery
- 1 in 2 men are expected to develop heart disease during their lifetime
- 70,000 Canadians suffer heart attack every year
- 80% of hospitalized patients survive
- 50,000 Canadians suffer a stroke every year
Critical Illness coverage doesn’t have to be much but should be at least 1-2 times your annual salary.
What is critical illness?
What is critical illness?
It is a lump-sum benefit payable if you are diagnosed with a critical condition in other words- Money at a time when its needed most.
With modern medical advancements you are far more likely to survive the illness than die from it. Should you get sick- you will have money in the form of critical illness coverage. A must for self employed people.
Some benefits about Critical Illness coverage
- receive benefit while alive, but sick
- lump sum benefit
- tax free benefit
- great asset for self-employed and business people
- savings vehicle, if unclaimed, you receive your money back 100%
- graded premium options, ie low costs
- fixed costs for the duration of the contract
- basic policy covers – heart attack, stroke, and cancer
- insurance provider cannot change the policy once it is issued
- options to pay everything in 10 – 20 years and have the policy for the rest of life
- key person insurance for business
- tailored coverage
waiting at the childrens hospital
Last week I took my 3 yr old to the Montreal Children’s Emergency room where we waited for 5 hours for a doctor to see us! Looking back, I think we would have probably been there even longer had it not been for the fact that I was being an utter nuisance to the staff! Desperate times call for desperate measures, right?
Over the course of this long wait, I would estimate that I saw approximately 30 children with various family members in the waiting room, which made me wonder how parents managed to leave work to bring their children to the hospital, notwithstanding additional time required should they require more time off work if the child requires hospitalization. My hope is, of course, that everyone has a backup plan in case they or their loved ones get sick. Unfortunately, we are not always prepared for what is in store for us and the impact can be immeasurable in certain cases. But if we can lessen the financial worry from these circumstances, it can be a blessing. Critical Illness coverage is one of the ways of caring for yourself through the stressful time of hospitalization, treatment, therapy and recovery.
What type of life insurance can you buy?
There are 2 kinds of life insurance coverage- temporary and permanent. They offer different features to meet different needs.
Temporary/Term Life Insurance
- temporary need, ie mortgage
- lower initial cost, very cheap depending on age
- renewal options
- pay as you go
- fixed expiry date
- fixed value over a limited time period
- level death benefit
- no cash value
- benefit paid at death
Permanent Life Insurance
- permanent need, ie last expenses, inheritance to the family
- higher initial cost
- one time lump sum payment
- options to pay in 5-10-15-20-30 years
- level premium(flexible) for rest of life
- buy and own
- coverage for rest of life
- tax advantaged accumulated cash value
- possibility of increasing death benefit
- access to cash value while living, ie loan
- and receive benefits during life time in the form of an income
The overall cost of life insurance reflects how long you need the protection for. The best solution for you might be a combination of term and permanent coverage in the same policy.
kids and finance
I meet a lot of young families through my 3 yr old child. Our conversations often lead to talk about financial planning as it is a topic that is usually of interest or concern for most people, and is also my area of expertise. From my experience, I have discovered that some people face unfortunate or unnecessary financial challenges for which I can offer solutions and assistance. This blog is intended to provide you with a glimpse of planning information that could help you:
A young mother contacted my office; she wanted to to buy life insurance on her 9 month old child, a child with sickle cell disease. Guess what?? The child is un-insurable!!!! Meaning no insurance company is going to insure a child that will probably die before his 25th bday due to sickle cell disease. Oh!!! How I tried and fought for this mother, but it was a NO a very clear NO from all companies.
Here r some reasons why purchasing life insurance coverage for a child is a GREAT idea-
- cheap, as little as $15/month (depending on the childs age)
- buying permanent life insurance
- the child is insured for the rest of his life
- u lock in the condition of ur child’s health
- its a growth strategy
- cash value
- tax free transfer of wealth to future generations
- life insurance is an assest the child can use to fund an education/TFSA/marriage later on in life
Remember, you do not need lots of $$$ to start investing. The above is just one aspect of financial planning for your child. Every family is unique, every situation is unique.
Devina Singh @Montreal Jan 30th 2011
