Insurance Planning

Term Life Insurance

The purpose of this insurance is usually for a short term or temporary need (to age 55 or 65) while the family is growing up and you are saving for retirement. It is to provide cash in the event of your death so those who depend on you will have the money to:

  • Settle your debts – mortgages, loans (business & personal), replace the income you provided to the family.
  • Provide for children’s education, marriage etc.
  • Complete the funding for your spouse’s retirement plan – very important and why many need some term insurance to age 65.
  • For businesses, it can be used to fund a buy/sell agreement or to provide insurance on a key employee to provide cash to find a new person, absorb the financial shock of the loss and have additional funds to pass on to the family.
[back to top]

Permanent Life Insurance

Also known as whole life insurance. A whole life insurance policy covers you for your entire life, not just for a specific period such as term insurance. Your death benefit and premium in most cases will remain the same. Unlike term life insurance, a portion of your premium money goes toward your cash value. Also, your premium will remain constant during the time you are covered unless you choose otherwise. And, unless you make a change to your whole life insurance policy, you have lifelong coverage with no future medical exams.

There are two major types of whole life insurance plan in the market, they are:

    Non-Participating Whole Life Insurance

    A non-participating whole life policy has a level premium and face amount during your entire life. The advantages of such a policy are its fixed costs and relatively low out-of-pocket premium payments. Since the policy is non-participating it does not pay you any dividends.

    Participating Whole Life Insurance


    A participating whole life policy pays dividends. The dividends represent the favorable experience of the company and result from excess investment earnings, favorable mortality and expense savings. Dividends can be paid in cash, used to reduce your premium payments, left to accumulate at a specified rate of interest or used to purchase paid-up additional insurance which will increase your face amount of coverage. Dividends are not guaranteed to be paid to you.

[back to top]

Universal Life

Universal life insurance provides permanent life insurance protection and access to cash values that grow tax-deferred at competitive interest rates.


Advantages:
  • Flexible Protection
    Flexibility for you to choose the amount of protection that best suits your family or business. It allows you to increase or decrease coverage as insurance needs change.
  • Flexible Premiums
    You control the amount and frequency of payments. You have the option to increase the premium or make lump sum contributions, subject to limits as specified in the policy. The extra dollars grow tax-deferred, and may increase the cash and death benefit values.
[back to top]

Critical Illness Insurance

A serious illness, such as cancer or heart attack, can create a financial burden for your family and drastically affect your life style. Critical illness insurance is designed to ease the financial pressures by paying a tax-free lump sum if you become seriously ill or totally disabled. You must normally survive at least one month after becoming critically ill, before the policy will pay out. It covers the following illness:

Basic Covered Illness

  • Heart Attack
  • Stroke
  • Coronary Bypass Surgery
  • Life threatening cancer
  • Multiple Sclerosis
  • Kidney Failure
  • Major Organ Transplant
  • Aorta Graft Surgery
  • Benign Brain Tumor
  • Coma
  • Heart Valve Surgery
  • Alzheimer's Disease
  • Loss of Independent Existence
  • Loss of Speech
  • Parkinson's Disease
  • Paralysis/Paraplegia
  • Severe Burns
  • Balloon Angioplasty
  • Blindness in both eyes
  • Coronary Artery Disease
  • HIV Medical Profession
  • Loss of Hearing
  • Loss of Limb
  • Motor Neuron Disease
[back to top]

Long Term Care Insurance

Long-term Care refers to the many services beyond medical care and nursing care used by people who have disabilities or chronic (long-lasting) illnesses. Long-term care insurance helps you pay for these services, which can be very expensive. A policy also ensures that you can make your own choices about what long-term care services you receive and where you receive them.

Long-term care insurance typically covers the cost of:

  • Help in your home with daily activities like bathing, dressing, eating and cleaning.
  • Community programs, such as adult day care.
  • Assisted living services that are provided in a special residential setting other than your own home. These services may include meals, health monitoring, and help with daily activities.
  • Visiting nurses.
  • Care in a nursing home.
[back to top]

Disability Insurance

Disability insurance is designed to replace 45-60% of your gross income on a tax-free basis should a sickness or illness prevent you from earning an income in your occupation. Unlike Critical Insurance which will pay you a lump sum benefit, disability insurance policy will pay you a monthly benefit just like a regular pay cheque you get from your employer. The benefit payment can be taxable or non-taxable, dependent on the amount of benefit required and whether it is an individual plan or group plan provided by your employer.

The major features of a disability insurance policy are very crucial in choosing the right plan that suits your need. Whether you are employed or self-employed will also play an important role when designing your disability plan.

[back to top]

Employee & Group Benefits

Most organizations believe their employees are a vital asset. But today’s competitive marketplace, combined with a shrinking workforce, has made recruiting and retaining qualified employees increasingly difficult. Offering the right benefit plan has never been more important.

Coordinated health benefits can mean better outcomes for employees, and simplified administration for the employer.

Group insurance benefits represent a significant financial obligation to the employer while playing an important role, alongside government-sponsored benefit programs, in providing for the well-being of employees and their families.

[back to top]