Q&A - Answers to basic questions No. 7 to 13
7. What are the main types of life and health insurance everyone should be aware of?
Since there are various kinds of risks, there are various kinds of insurance policies as well that you should consider. It is also important to take account of your wishes, responsibilities, and time horizon, when compiling an insurance portfolio.
The cheapest form of life insurance is term insurance, but if you need protection for the long run, you are probably better off with permanent insurance (a.k.a. whole life insurance). Universal life insurance offers very important money management advantages, beyond the basic function of protection as well. Its creative applications make it important even for people who do not really need or want to ensure a death benefit to anyone when they die. Somewhat similarly to universal life insurance policies, segregated funds also combine two basic component, risk protection and pursuing investment gains.
Many people do not know enough about a very basic new type of insurance, critical illness insurance, that is relevant basically to everyone, but perhaps even more so for single and/or self-employed people. With changing demographics and deteriorating health care system, another new type of protection, long term care insurance, will surely become more popular. These new policies, while similar to traditional disability plans in some sense, are basically complementing and not substituting those.
An important development of the industry is that there are more and more policies (extended health and dental care, business overhead protection plans, injury only protection, etc.) available to self-employed and lower income people who were somewhat neglected before.
8. What are the main new trends in life and health insurance?
Responding to new developments in demography, society, medicine, etc., the insurance industry has come up with new offerings, such as
Besides, because of competition, consumers' demand (fortified by court decisions, among many things), and technological progress, insurance companies are becoming more responsive and accountable.
9. What is the essence of critical illness insurance?
Critical illness insurance protects the increasing number of people who survive certain life threatening situations. This kind of policy
The list of covered conditions varies among companies, but there is a common core of the most frequent critical illnesses: heart attack, stroke, cancer, coronary bypass surgery. Besides, most companies cover more or less of the following: kidney failure, Multiple Sclerosis, paralysis, organ transplant, Alzheimer's disease, Parkinson's disease, coma, severe burns, blindness, deafness, loss of speech, loss of limbs, occupational HIV infection, motor neuron disease.
10. Who needs critical illness insurance and why?
The need for critical illness insurance is probably bigger than for any other type of insurance because
Shortly, this kind of protection is basically for everyone.
11. What if I have group health and disability insurance from employers, professional associations or WCB?
If your employer offers you group health and disability insurance: good for you, accept it without much hesitation. However, be aware of group policies' weaknesses as well.
It might be a good idea for you to get a quote for an individually owned disability policy that is adjusted to your own personal circumstances. With that in hand, you can make meaningful comparison of various costs and benefits, strengths and weaknesses. For many people, some kind of combination of the two is perhaps the optimal solution.
12. Will OHIP not cover me if I get sick?
No, unfortunately, OHIP will not cover all the costs of a serious health problem.
When considering the financial consequences of a mishap, one should always include not just the direct costs but the loss of income as well.
13. Why is it said that disability insurance is available for more people today? For whom, actually?
More people can buy disability insurance today than in the past. Insurance companies finally discovered that
actually create a large group of people who need and want disability insurance.
Today, several companies offer special products for these people. One can buy at least some coverage even without the usually required evidence of past regular income. This feature is especially important to new business owners.
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Life and health insurance (including disability, critical illness, and long-term care protection)
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