Posts Tagged ‘insurance’

Critical illness insurance is a type of protection that provides you with a lump sum payment if you are diagnosed with a covered critical illness and survive a waiting period (which is usually 30 days). With the advancement of technology more people are fortunately surviving these conditions but are often unable to get back to their pre-condition potential.

What’s the difference between disability and critical illness insurance?

Unlike disability insurance (that pays out a percentage of income as a monthly benefit), critical illness insurance actually pays out the entire tax free lump sum immediately, giving you flexibility to use the money as best needed. That’s where the critical illness benefit comes in—you are free to spend the money as you wish—such as to help cover lost income, to pay for private nursing or out-of-country treatment, for medical equipment or even to pay off your mortgage. It can help you where you need it most so you can focus all your energy on recovering.

NOTE: I have seen the benefits of this coverage first hand when my partner Tom suffered a heart attack in 2007 and fortunately had this coverage in place (although he didn’t take us to Hawaii like he said he would!!)

Could A Critical Illness Really Happen To Me?

(not the funnest facts but definitely an eye opener):

80% of heart attack victims survive
2 in 5 Canadians will develop some form of heart disease during their life time
Half of heart attack victims are under 65
153,000 new Cancer case in Canada in 2006
1 in 3 develop cancer in their life time
There are 40,000-50,000 strokes each year in Canada
One third of stroke victims are under 65
300,000 Canadians are living with the effects of stroke
Approx. 75% of all Canadians that suffer a stroke will survive but will be left with some form of disability
Sources: Heart & Stroke Foundation (2006), Canadian Cancer Society, Canadian Cancer Statistics (2006), Veterans Affairs Canada (2006)

As an independent insurance broker with Manion.ca,  we have contracts with all the top insurance carriers allowing us to shop the market to find the right critical illness insurance product for you at the best price.

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For more information on Critical illness insurance in Maple Ridge & Pitt Meadows BC please 

What is critical illness insurance?

Answer: Critical illness insurance is a form of health insurance that provides a lump-sum payment should you become seriously ill.

What are the types of illnesses covered by critical illness insurance?

Answer: Although they differ from company to company, typical illnesses and diseases covered by critical illness insurance may include:

  1. cancer
  2. heart attack
  3. stroke
  4. blindness
  5. Alzheimer’s
  6. multiple sclerosis
  7. organ transplants
  8. kidney failure
  9. paralysis

Coverage can also vary according to the degree of severity of, or conditions associated with, an illness or disease. For example, if you are diagnosed with a type of cancer that is treatable and that results in minimal “down time”, you may not be eligible to make a claim. Coverage cannot be purchased for a pre-existing condition or illness. It is important to ask your insurance representative to provide you with a complete explanation of your coverage.

Do I need critical illness insurance?

Answer: Almost certainly, Yes! The risk of suffering a critical illness or disability is unbelievably high.  Calculate your risk here.  You should also consider your personal circumstances and the added financial strain that could be brought about by dealing with a serious illness or disease. Public and private health insurance plans typically do not provide coverage for day-to-day living expenses such as travel to and from treatments, home care and child care.

How much does it cost?

Answer: Generally, the younger and healthier you are, the lower the premium (cost). However, the cost varies depending on your age, medical condition, the amount of coverage, the number of illnesses covered by the policy, and the insurance company. When shopping for a critical illness plan, you should consider your income, financial obligations, dependants  and health care needs.

How can I make a claim?

Answer:You can make a claim if a physician, licensed to practice medicine in Canada and specializing in your particular illness, diagnoses you with a critical illness or disease covered by your policy. Generally, a lump-sum benefit payment will be made to you 30 days after the claim has been approved. There are no restrictions on how you use the money. Once your claim is paid, your critical illness insurance policy ceases.

What if I never make a claim?

Answer: If you die for a reason not covered by the critical illness policy, the premiums you paid may be refunded to your named beneficiary. Some plans will return the premium or a portion of the premiums paid during the life of the policy if the policy matures and no claim has been paid.

Is long-term care insurance the same as critical illness insurance?

Answer: No. Long-term care insurance provides for personal care on a long-term basis if you need supervision or assistance with daily living activities due to a chronic illness, disabling condition or cognitive impairment. Long-term care policies generally reimburse, up to a specified limit, the expenses incurred for various types of care, such as nursing home or home health care; or they pay a pre-determined benefit amount on a daily or monthly basis.

Is disability insurance the same as critical illness insurance?

Answer: No. Disability insurance, also known as “income replacement” insurance, provides a monthly income replacement benefit if you become disabled and can no longer perform the normal duties of your work. Generally, the benefit is limited to a percentage of your regular income and ceases once you earn an income or you no longer meet the definition of disability in the contract.  Unlike critical illness insurance which provides the full policy benefit in a lump sum payment on diagnosis of a critical illness, long-term disability policies may have a waiting period from the onset of disability. Unlike critical illness benefits, long-term disability benefits may be affected by other income you receive or by your full recovery from the illness.

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7 COMMON HOME SECURITY MISTAKES

If you and the guy who wants to steal your television sat down to shoot the breeze, what would you ask him?

The chance to pick a burglar’s brain could certainly give you some ideas for home security upgrades, but it’s not a very common opportunity. So, we created some fictional burglar monologues (based on real research). Listen up, because over two million burglaries occur each year in the United States (one every 15 seconds)! Here are a few things your neighborhood thief doesn’t want you to know.

If you’re already convinced that your home could use some extra security, here are seven effective ways to protect your house:

1. Ladders are awesome.

Every time I see a ladder hiding behind a shed or leaning against a house, my heart does a little jig. Do you know how easy it is to crawl through a second-story window with a ladder? Plus, you probably aren’t stressed about locking your second-story window when your front door is dead-bolted.

Takeaway: Keep all of your windows and doors locked tight when you’re out of the house, and hide the ladder in your garage or in a shed when it’s not in use!

2. Your trash reads like a catalog.

Where did your brand-new flat screen’s box go? That’s right – it went in the trash. So I can dig through your trash and find out exactly what’s in your house. It’s easy as pie to know which homes to hit up – especially around the holidays!

Takeaway: Never leave boxes of expensive items on the curb. If possible, take them directly to a trash center.

3. Newspaper piles are a dead giveaway.

Who lets newspapers pile up and their mailbox overflow? People on vacay, that’s who. A house that’s obviously empty is a house I’m going to think pretty seriously about robbing.

Takeaway: Before you leave for vacation, call the post office and ask to them to hold your mail during the dates that you’re away. You’ll be able to pick it up when you’re back in town. If you enjoy cracking open a newspaper in the morning and have The Times delivered every day, call the paper and have it halted while you’re gone.

4. Untrimmed bushes and dark areas are perfect hiding spots.

The more overgrown your bushes are, the more likely I’ll want to hide in them – especially if they’re near windows! No motion detectors to set off exterior lights? Even better! That way, I can case your home and you won’t notice me.

Takeaway: Make sure your bushes and trees are neatly trimmed so they don’t double as hiding spots! It may also be worth installing outdoor motion activated lightnear exterior doors and windows for some added security.

5. Nothing beats an alarm system with a view.

Whether it’s through a window or from a reflection, I really love being able to see your alarm system. That way, I can tell if it’s armed and know exactly what I’m getting myself into. You’d be surprised how many mirrors have helped me out!

Takeaway: If your alarm system is visible through a window, make sure you use blinds or shades to cover it up when you leave or go to sleep. If it’s noticeable in a mirror’s reflection, move that mirror!

6. Burglars use Facebook, too.

When you brag about your awesome trip to Cancun on Facebook, I may not like your status, but I definitely like the fact that I know your house is empty!

Takeaway: It’s tempting to post images of your amazing trip in real time, or update your status about how much fun you’re having in a foreign country, but it’s safer to wait until after you’ve returned home.

7. Dark houses attract bad people.

If a house’s lights are off for several days in a row, it’s a dead giveaway that people aren’t home. I like to give it a few days just in case, but if no lights come on, I get ready to roll!

Takeaway: To make your house seem lived in, install a timer in some rooms that will turn lights on and off during different times of the day. Burglars know that it’s common to leave lights on, so they will be more cautious if they see changing lights. If you need to buy a timer, we like this 7-day random vacation timer by GE (it’s less than $20).

Everyday on the news we are reminded that the Canadian health care system is in a state of crisis.  Those who have family or friends on long-term care waiting lists or in a facility already,know that the situation is becoming desperate.  The shortage of long-term care beds is so severe hospital beds, already in short supply, are occupied by those awaiting transfers to long term care facilities. Often that wait can last years.  Even 20 years ago when my great grandfather waited for placement in suitable facility given he had Alzheimer’s, the wait was over a year.  That was 30 years ago, today the situation is far far worst!

With growing pressure from an ageing population, the system simply cannot handle the increasing burden. Consider this:

  • In 1900, 7% of all adults were over age 65
  • Currently, 17% are over age 65
  • By 2020, over 23% will be over 65
  • The number of Canadians aged 80 and over will double in the next 20 years – and triple in the next 40 years
  • The number of seniors in Canada has increased by one million in the last decade
  • By the year 2036, it is expected that there will be between 4.6 million and 5.1 million seniors with disabilities
  • By 2020, there will be as many seniors as children!

Currently we are spending $4.1 billion each year on Alzheimer’s and dementia. In 20 years, the number of seniors afflicted with some form of dementia will more than double, to 750,000.  With an ageing population comes the increasing costs.

Our medical system is already unable to deal with this. Even in general, the system is overburdened.  Have you had wait in an Emergency Room lately?  How about wait for an appointment with a specialist?  Or how about the dreaded surgical wait list?  Do to the increased demand and pressures there has been a shift towards “less costly” community-based care and a dramatically increase in the demand for home care.  At the same time the average number of home care hours you might have received a few years ago has dropped from over 20 hours per week to just 2-4 hours per week!

Again, those of us who have elderly parents and friends might be forgiven for feeling somewhat cynical about the current debate surrounding two-tier medical services. When it comes to long- term care for our loved ones, it is readily apparent that a two-tier system is already well entrenched. In short, the services are available, if you can write the cheque.

So…what are the chances that you will need long term care? It’s true, we are living longer – in fact, in 1996, life expectancy at age 65 was 18.4 years, 5 more than in 1941. But the other side of the coin is that of those 18 years, on average, 9 are relatively healthy, and the other years include 3 years each of slight, moderate, and severe disability. In fact, it is estimated that at least 40% of all people over 65 will need some form of long-term health care services.

Traditionally, we have counted on the government to provide for our medical needs, but when it comes to long-term care, you can expect the following from our medical system:

  • Long waits, up to three or four years just to get into a facility,
  • Outdated and overcrowded facilities,
  • An annual financial assessment, to determine the level of subsidy received,
  • No choice of location, both in terms of which facility and which community! (You could end up in a town awy from friends and family)
  • Reduced services.

The combination of high cost for private home care or facility care and public care or financial assistants being based on an analysis of your financial means… You could find your retirement savings liquidated in a few short years.  Consider the following:

  • Current home care costs about $30 per hour, and up to $50 per hour for some services
  • Even a government facility will cost you from $750 to $1500 per month, in addition to the subsidy
  • Private facilities range from $2500 to $7000+ per month! And don’t forget, this is the cost per person, not per couple.

There is an option to help protect your choices and your finances.  Long-term care insurance covers virtually all of the expenses of long-term care, either in your own home or in a facility, for periods ranging from a few years to lifetime coverage.

Those of us involved in financial planning, long-term care insurance may be the most important financial tools available to Canadians.   Long term care insurance may be the only option to protection us from the loss of our lifestyle, our independence, and our control over our health and finances.

As I once heard it so eloquently put , “Most people want to choose where they go, instead of having to go where they are taken…”

How do you determine the amount long term care insurance you need, given the future is so unpredictable?  Simply buy as much as you can afford.  The demand for and costs of are going to increase and increase a lot!

Learn how this strategy can help a cause and save tax for your heirs

Philip Porado, Jul 9, 2012

Most people don’t know how they can use annuities and insurance to boost their charitable giving.

“People are saying, ‘Don’t buy annuities now because interest rates are low,’ ” says John Jordan, CFP, an insurance and estate planning specialist. The other common argument is that life insurance is expensive, but Jordan asks, “Expensive compared to what?”

Insurance may be pricey at the front end, but it hedges against a person’s longevity and inflation by obtaining a policy for a larger sum than you would be able to amass in cash.

via Gift Insurance to Charity | Canadian Capital.

Insurance you shouldn’t buy | MoneySense.

 

Having insurance falls under Gail Rule #4: Mitigate Your Risks. But “the right kind” of insurance is often confusing for folks. So here are three types of insurance you should skip and save your money.

Mortgage life insurance
If you have a mortgage you’ve no doubt been offered mortgage life insurance by your lender. Don’t buy it. It’s expensive. It’s single-purpose. And it can be denied down the road, since it isn’t “approved” until you try to make a claim, which is not when you want to find out you aren’t covered.

Read more at moneysense.ca Insurance you shouldn’t buy | MoneySense.