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Insurance 101


Insurance is something that most Canadians need to consider at some point in their lives. But with so many different plans and options available, this topic can be a little overwhelming. With that in mind, here's a brief overview of the most important typesof insurance you'll encounter. Hopefully, this will give you a better idea of what insurance you need.
When the time comes, remember, as an Insurance Broker I can look at products from a large number of companies to find the right product to suit your needs.


Life Insurance

There are three main types of life insurance - Term, Whole Life and Universal Life. 

Term insurance provides inexpensive protection for a set period of time - typically 10 or 20 years. When the Term ends, the premiums will rise, but the coverage continues. Over time Term Life can get really expensive, and the coverage typically ends at age 80. 

Whole Life insurance protects policyholders for their whole life and provides guaranteed cash values as well. Universal Life insurance is a flexible whole life insurance product combined with a tax-deferred investment savings account. Both Whole Life and Universal Life plans provide fixed and level premiums which do not increase.

Each of these 3 plans serves a unique need: Term insurance is an affordable way to provide basic coverage, while Whole Life and Universal Life offer extended features and longer coverage. Term Insurance is cheaper initially, but over time is more expensive than Whole Life or Universal Life.

Disability Insurance

As its name suggests, disability insurance provides protection for workers who suffer a long-term disability through injury or illness and are unable to return to work. 

Many types of policies are available, with varying degrees of coverage. Your ability to work is your greatest asset, and Disability Insurance allows you to protect your Income and your family's standard of living if you should become sick or injured.

Some employers offer this coverage as part of their standard benefits package to employees, but these policies are very basic, and do not provide much protection.

Critical Illness Insurance

Critical Illness insurance is a living benefit paid to you if you are diagnosed withany of the plan's covered illnesses or diseases. The major covered conditions include Heart Attack, Cancer and Stroke but there are generally 24 or more conditions covered.

If you are diagnosed with a covered condition and survive 30 days, your plan pays out the benefit, and coverage terminates. This kind of coverage is helpful as a bridge between Disability Insurance.

Critical Illness coverage is often the only way to protect against large medical bills or changes in your lifestyle that require a lump sum of money.


Long-term Care Insurance

Long-term Care insurance assists with the costs of receiving extensive health care. It serves as a ready source of funds to cover medical costs, private care facilities, private health care workers, or any other expenditure you deem appropriate.

With an aging population and rising facility costs, Long-term Care insurance is a cost-effective way to provide for the healthcare of yourself or a parent.

                         Manulife Securities Disclaimers
Mutual funds are offered through Manulife Securities Investment Services Inc.  Insurance products and services are offered by Robert Pethes, an independent Insurance Representative.  Banking products and services are offered through referral.
* Manulife Securities related companies are 100% owned by The Manufactures Life Insurance Company (MLI) which is 100% owned by the Manulife Financial Corporation a publically traded company. Details regarding all affiliated companies of MLI
can be found on the Manulife Securities website
© 2017 Rob Pethes