Life Insurance and Living Benefits

Every industry has its own jargon and acronyms which confuse the average person. The Life Insurance business is no less guilty when it comes to special terms and phrases. The intent of this blog is to provide some answers to some of the most commonly misunderstood insurance terms. Every policy, and every company has its own contractual definitions and you should check with your carrier for accurate meanings. The following terms are being defined for general understanding: Death Benefit : The sum of money that will be paid at the death of a life insured. Beneficiary :  The person(s), company, or estate that the death benefit will be paid to; following the death of the life insured. Waiver of Premium : This is where the premiums for the insurance policy are paid by the insurance company if the life insured or the policy owner is disabled or dies. Guaranteed Insurance Benefit : This benefit is a contractual provision which allows the life insured to purcha...

Y ou bought your home from an agent you trust, you qualified for the Mortgage because of good credit, you shopped for a great mortgage rate to save money, and when it came to the mortgage insurance, you simply signed on the dotted line without asking “Is this a good deal?”. Most people want to get life insurance when they buy a home, but are often too excited about the new house that they forget to ask any questions about the insurance. How many times have I heard, “I didn’t want to blow the deal, so I just signed”, or “the banker just told me to sign the document, so I did”. It’s not too late to look around, and yes, you can cancel the bank insurance if you want. Mortgage insurance at the bank is often very expensive for what you get. Here are 7 things about Bank insurance you should know: 1. Money: Bank insurance is often very expensive when compared to a private policy. 2. Coverage: Bank insurance is tied to the mortgage, so if you pay off or reduce your m...

For the past 10 years in Canada, we have all heard about Critical Illness Insurance ; yet the average person does not understand how Critical Illness Insurance works. We know that life insurance pays if you die, and that disability insurance pays if you become disabled; but what about the in between stage where you are diagnosed, but you aren’t sick enough to be disabled and you don’t die either? The financial cost of being sick is staggering . Drug coverage by group plans and by the government is limited, and living in Canada has now become known as winning the postal code lottery. We all know someone (maybe even in your own family) that has had a heart attack, stroke or cancer.  Having a critical illness can change your life forever. Finances may never recover, and having a critical illness is often the root of marital breakdown.  Even for young adults, a sickness may ruin your finances, and moving home with your parents when you are sick is often not in t...

My Grandfather bought a life insurance policy for me when I was a baby. At the time, he didn’t know what my future would hold. He didn’t know if I was going to be a success in business, happy in life, or even a good or a bad guy. My grandfather simply wanted to do something that would help me in any way he knew how. People don’t buy life insurance on children in case they die; people buy life insurance on children in case they live. Of course, should the unthinkable happen; a death benefit would help offset the associated costs so parents are not left with the loss of a child, and a debt. Parents look to their child’s future and set money aside for all sorts of things. Short, medium and long term savings become a part of most people’s lives. Saving for a rainy day and saving for an education are far apart in the scope of the mechanics; however, every type of savings plan is important- including starting an insurance plan. When it comes to children, life insurance offers so...

Summer is not officially over until September 21 st . However, “back to school” week is a sure sign of the fall! The fall is a busy time in our financial planning office, as people seem to use this time of year to tidy up many small items concerning everything financial. It might also be a good time of year for you to do the same, especially if you aren’t in this “fall time” habit. Many people have a list of items to refer to when it comes time for financial clean up. Here is a typical list:       Update beneficiaries on your insurance policies’ if required.       Increase your disability coverage if your income has increased.       Review your RRSP investments against your current Risk Tolerance questionnaire.       Top up your Tax Free Savings Account       Increase your RRSP deposits by 10%       Question your bank to see if you can save money by renewing your mortgage ea...

Speaking to an audience can be a nerve-racking experience for anyone; especially if you are speaking in front of family, friends or people you may know.  However, speaking in front of strangers doesn’t subtract from all of the nervousness either.  You may notice that the anxious feeling of “life or death” does dissipate a bit when the audience is not related to you; but maybe this is just because you know that if you do a terrible job, you never have to see them again! I have spoken to thousands of people on spectacular stages in 10 different countries. I have spoken to English speaking audiences and I have spoken and been translated consecutively and simultaneously into Spanish, Vietnamese, Mandarin, Japanese and Portuguese, to name a few. Although I rarely get stage fright anymore, I still get butterfly’s in my stomach; albeit, they now fly in formation. While experience is helpful, there are a few tips one can use to calm their nerves, and sound a little more profession...

I was building a deck a few years back and I didn’t know what type of wood to use.  When I asked my family and friends, everyone seemed to have their own answer.  One friend suggested spruce, another recommended pressure treated lumber, another proposed untreated lumber, and yet another believed cedar to be the best choice; if I could afford it. I wasn’t sure which wood to settle on until I asked a family member; who in turn asked me a question first. He asked: “how long do you want the deck to last?” I guess the answer really depended on what my own objective was. When buying life insurance, one must ask themselves similar questions; such as: Why do I want the coverage? How long will I need the insurance? Is my need short term or permanent? Will my need diminish with time? And the most important question: How much coverage do I need to accomplish my objective? By asking these questions, the answers will come to the surface; and speaking with an adv...