Group Life, Health, Dental, Short & Long Term Disability Insurance
Why Do I Need to Consider Individual Life Insurance?
You don’t need a seatbelt to drive a car. However if you’re in a severe auto accident without wearing one, the consequences can be devastating to you and your family. Similarly, Individual Life Insurance is a simple tool that can be used to protect the financial security of yourself and the people you love the most. For example, Disability insurance is an income replacement tool in the event of a accident or sickness. In the event of your death a tax-free lump sum will be paid to a named beneficiary or in the event of a disability your earned income will be replaced until you can return to your occupation. These types of coverage can provide the insured a true sense of financial security knowing that in the event of death or disability their family will never be faced with a financial hardship.
What are the different types of life insurance products?
McLean Hallmark (though our affiliate McLean Hallmark Financial Ltd.) offers a variety of insurance options for protection that is tailored to your family’s needs. The following are some of the more popular products available:
- Individual Term Life Insurance. If you’re expecting your first child, putting a mortgage on a new home, or looking to top up existing insurance protection, this is one of the more inexpensive life products available. A term life policy will expire at a specific age and is guaranteed renewable for a variety of term periods. If you die during the term period you have selected, a tax-free payout will be paid to a named beneficiary. The longer the guaranteed term period the more you’ll pay in life premiums. Most term life policies will allow you to change or convert your term life contract to a permanent life (explained below) insurance policy easily – a very valuable feature if you ever become uninsurable due to health issues in future years.
- Individual Permanent Life Insurance. This is a life insurance policy where the premiums you pay and the death benefit are guaranteed for the rest of your life. As long as you pay your premiums the amount of the death benefit will never decrease and the premiums will never go up. Another type of permanent life insurance that will provide a future dollar payout as well as the death benefit is better known as “Whole Life”. Premiums when purchased at younger ages are much more reasonable given the guaranteed features offered in this type of insurance product.
- Individual Universal Life Insurance. This is a very unique life policy product which offers a guaranteed cost of insurance known as a “term to age 100” combined with the advantages of a tax sheltered investment. These life products are used for clients looking to find additional ways to help shelter funds and to defer taxes while at the same time provide a permanent life insurance solution.
- Individual Critical Illness and Disability Insurance. Critical illness policies will pay you a lump sum if you are diagnosed with a critical illness, but the illnesses covered will vary from life company to life company. Disability insurance is better known as income replacement coverage. A disability policy will help to replace the loss of your earned income in the event of an illness or sickness. Please speak to an advisor before purchasing this type of insurance. No one disability plan is the same as all others.
- Mortgage Insurance. This type of life insurance is sold through most banks but has a decreasing death benefit value. In the event of your death the proceeds are to be used to help pay down your mortgage. This is one of the poorest forms of life insurance coverage you could ever purchase. When sold though the banks there are usually no medical questions asked (up to a $250,000 death benefit), but such insurance contracts will contain a “pre-existing medical condition” clause that could affect payouts.
Who is Eligible for Individual Life Insurance?
Most healthy males and females can apply for life, disability or critical illness insurance. Depending on your age, underwriting requirements may include a blood and/or urine test. Additional medical testing may be required depending on how you answer the medical questionnaire provided in the application. The insurance company may write your doctor for additional medical information as well. If you answer all the medical questions to the best of your knowledge and provide full disclosure of any current medical conditions an offer will be presented to you based on your health at the time of application. In some case premiums quoted at the time of the application are lower then what was first offered to the proposed insured once approved by the insurance company.
Our Specialist Brokers
About David Lawless
Dave has been in the life/investment insurance industry for over 35 years, previously with Crown Life, Excelsior Life later known as Aetna Canada selling life/investment products and recruiting and managing life agents. In the late 1980′s Dave joined McLean Hallmark Insurance Group and in 2002 became an equity partner in the life division, becoming President of what is now known as McLean Hallmark Financial Ltd.
About Ria Reimann
Ria has been a Financial Planner for 20 years, specializing in living benefits, including income replacement and risk management solutions for individuals, business owners and professionals, as well as life products and segregated funds.