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Thursday, December 29, 2011
A Critical Illness covers from 4 to 26 major life-threatening illnesses offered by most life insurance carriers.
A CI plan pays out a TAX-FREE lump-sum to you on diagnosis and usually 30-days survival of a covered illness. Now that you've
survived the covered condition and most likely need further medical attention to recover, you'll be disabled (hopefully
temporarily), and unable to continue working to earn an income.
But, the household bills and living expenses won't
stop coming in the mail because you have suffered a critical illness! This is where the TAX-FREE lump-sum CI plan protects
you and your family ... it will take care of your bills/living expenses and new medicals for as long as the CI lump-sum lasts
(hopefully as long as it takes you to fully recover and return to work)!
Note: To apply for a CI plan you must
be medically eligible for underwriting - if you currently have a severe illness you may not be eligible! The bottom
line ... get your CI plan while you're healthy - the younger you are the cheaper the plan ... also a non-smoker will
get the best rates!
Fact - the incidence of someone suffering a critical illness condition in their working-life
is increasing according to statistics! To determine your CI needs estimate your potential working income over your remaining
work life, then determine what appropriate coverage you'll need and your monthly affordability to pay the premiums!
Here's
a thought ... if you can afford to pay your auto insurance premium for your $50,000 vehicle would you not be prepared to pay
a CI premium to provide you with a future earning potential of $1m or more?
1:06 pm est
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Why you need coverage! Will your mortgage and other debts be their burden! Or, would it be better for them if you made
the right decision to have a life insurance plan with a critical illness rider that will provide them with a tax-free
lump-sum payout! This would then allow your family to pay-off or pay-down your debt obligations, and possibly have enough left
over to fund your childrens' future education!
Permanent Life Insurance Plans Available A
permanent life insurance plan is designed to provide insurance protection for your entire lifetime. Many people appreciate
this kind of security, knowing that when they die, their beneficiaries may receive the full amount of their insurance, tax-free. Permanent Life Insurance - Whole Life or Universal Life plans:
With permanent whole-life insurance, your premiums never change! You may choose
to pay premiums to a certain age or for a certain number of years ... otherwise, your premiums will be for life.
This plan accumulates a "cash value" (sometimes guaranteed) when it participates in the life insurance company's
earnings in the form of "dividends". Note: some whole-life plans do not participate
in the company's earnings and earn no "cash value"! With permanent universal-life insurance, your premiums may be level or based on a 1-year renewal term basis (meaning
that your premium will increase as you age)! You may choose to pay premiums to a certain age or for a certain number of years
... otherwise, your premiums will be for life. This plan accumulates a "cash value" based on the investment
options available in the plan. Note, the "cash value" is never guaranteed (as no financial market investment
may guarantee its investments)! If you choose a 'guaranteed interest' option (usually very low rates) available in
the plan this becomes 'guaranteed' contractually. |
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Term Life Insurance Plans - are good for
a specific period of coverage. Most term plans are renewable (may be renewed for a further term without further evidence
of insurability), and convertible (may be converted to another plan with the same insurance carrier). Note - when these plans are renewed or converted premiums will increase in almost every
case. |
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Term Life Insurance Plans Available 5-year term, 10-year term, 15-year term, 20-year term, 25-year term, 30-year term, and term
100. Note - you may buy permanent and term plans on
an Individual or Multi coverage, or Joint-first-to-die, or Joint-last-to-die ... |
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Critical Illness (CI) Plans Cover you for major life-threatening illnesses like cancer, heart attack, stroke and some other 22
illnesses. CI plans are sometimes referred to as living benefit plans - simply because you've
survived one of the covered illnesses. Most CI plans payout the coverage amount on diagnosis and survival of
the covered illness - the lump-sum payout is tax-free for Canadians. CI
plans are available as a stand-alone plan or as Rider to certain life insurance plans. Note
- A CI plan is usually sold as an Individual plan. Popularly available as a 10-year Term, 20-year term, T-65 (to
age 65), T-75 (to age 75), and T-100. |
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