Wading Through the Options

Last week we started talking about Critical Illness Insurance and how it is possibly the best insurance product on the Canadian market. It was introduced to our fine country in 1996 and it is a definite “life saver” in my opinion. While having Critical Illness insurance will not take away the accident or the disease, it does take away a lot of the financial stress and gives you options.

There are many options currently on the market for purchasing a critical illness policy, so how do you wade through the myriad of choices. Here is a short list of questions you need to ask and get answered before you sign on the dotted line:

1. Who OWNS the policy? Is it a policy where you are the owner and have full control or is it owned by a third party / creditor and they have the control and can make changes to the policy?

2. What illnesses and accidents are covered? Different policies cover different situations. Some policies only cover the Big Three (Heart Attack, Cancer, and Stroke). Other policies cover the Big Three and a long list of other things such as blindness, deafness, organ transplant, multiple sclerosis, coma, severe burns, etc.

3. Is there any coverage for non-life threatening illnesses such as first stage breast, skin, or prostate cancer or angioplasty? If there is coverage how does it work?

4. When is the underwriting completed? There are policies that call themselves guaranteed issue, but what they really mean is underwritten at claim. If a policy is going to be underwritten, you want to jump through the hoops before you start paying a premium and make sure you are actually insured.

5. Are the premiums and benefit guaranteed? With a privately owned policy you get what you pay for. When you get “insurance” through a lender (bank, mortgage, leasing company) the benefit reduces with each payment you make, but the premium stays the same. In some cases the entire insurance premium is added onto the debt and you will pay interest on the insurance as well as usually paying much higher premiums than if you had purchased real insurance. In the case of critical illness insurance that will make your payments for you while you are ill, do they cover the full payment or just the interest portion?

I encourage you to start looking into this fabulous protection if you don’t already have it and if you do have it review it. This could very well be the coverage that saves your house and your lifestyle

“Healing is a matter of time, but it is sometimes also a matter of opportunity.”

Tammy Johnston

Tammy started working in the Financial Services Industry in 1993. The first 9 years of her career were spent working in regional offices, for independent agents, and as Brokerage Manager for two different MGAs. Her focus was on training other agents and helping them solve problems for clients. After spending close to a decade as an employee Tammy decided to venture into the “sales world”. Determined to be more than just another insurance salesman, Tammy founded The Financial Guides. She set about working with clients in a totally different fashion. Feeling that everyone needs a sound financial education she created her first class “Financial Journeys”. The goal was to provide the accurate, unbiased, basic information in simple English that we all require, but can’t easily find. Knowing that the best way to learn is by having fun and being comfortable, Tammy takes good care of her guests with excellent food and lots of laughter. Further expanding her educational and value added offerings Tammy created “Sandwich Safaris”, “Business Builder Nights”, “Small Business Class”, and "FInancial Journeys Summer Camp". Putting time and care into helping with the necessary tasks required to run a successful financial household Tammy works with clients to set up budgets that actually work, reviews credit and debt to make sure it is working for the client and not just against, and makes sure all the pieces of the puzzle fit together properly. Knowing that all financial aspects affect one another she looks at the whole picture. Honestly tells you what is working, what could be improved, and what is missing. Tammy’s clients understand what they are doing, why they are doing it, and have hope for the future. The newest project by The Finanical Guides is our Childrens' Financial Book Series. To check out the books please go to http://financialfoundationsbooks.com/