Adrian Insures - FAQ
Life Insurance FAQs (Frequenty Asked Questions)
? What is life insurance?
Life insurance is a contract between you and an insurance company where you pay premiums in exchange for a lump sum payment to your beneficiaries upon your death.
? Do I need life insurance if I'm single with no dependents?
It can still be beneficial for covering funeral expenses or leaving a legacy. Some policies also accumulate cash value.
? What's the difference between term and whole life insurance?
Term life covers you for a specific period, while whole life lasts your entire life and includes a cash value component
? How much life insurance do I need?
It depends on your financial obligations, such as mortgage, debts, and income replacement needs.
? Can I change my life insurance policy later?
Yes, many policies offer options to increase coverage or convert term policies to whole life.
? What is a Child Savings Plan?
Child Savings Plan is a "Participating" Whole Life insurance plan that Canadian parents have relied on since the 1800s to build savings for their children's education and future.
? How old must the child be to open a Child Savings Plan
Parents, grandparents, aunts, uncles, or legal guardians can open the Child Savings Plan for a child as young as 14 days old. While it's advantageous to begin early, Child Savings Plan is also available for children over the age of 18.
? Are there any restrictions for what my child can use their Child Savings Plan for?
No. Your child can access the cash value for any of life's financial needs, whether it's funding their education, contributing towards a down payment on their first home, or addressing other financial priorities.
? What is final expense insurance?
It covers funeral and burial expenses, ensuring your loved ones aren't burdened with these costs.
? What is non-medical life insurance?
It allows you to get coverage without a medical exam, making it accessible for those with health issues or concerns.
? Do I need life insurance as a newcomer to Canada?
Yes, life insurance provides financial protection for your family if something happens to you.
? Can I get life insurance as a newcomer?
Yes, insurance companies in Canada offer policies to newcomers, but terms may vary based on your immigration status and time in Canada.
? Are there any taxes or fees when I give my child their Child Savings Plan?
No.
? Why should I consider life insurance for my child?
It can provide financial protection and guarantee insurability regardless of future health conditions.
? What are the benefits of child insurance policies?
They often include savings components to help with future educational expenses or other needs.
? What is disability insurance?
It provides income replacement if you cannot work due to illness or injury.
? Is disability insurance necessary if I have worker's compensation?
Yes. Worker's compensation may not cover all expenses, and disability insurance offers broader protection.
? What does critical illness insurance cover?
It pays a tax-free lump sum if you're diagnosed with a covered critical illness, such as cancer or heart disease.
? Is critical illness insurance taxable?
No, the lump sum payment is generally tax-free.
? Does travel insurance cover COVID-19?
Coverage varies, but many policies now include COVID-19-related expenses.
? Is business interruption insurance necessary?
It can help cover lost income if your business is unable to operate due to a covered loss, like fire or natural disaster.
? What is super visa insurance?
It's a requirement for parents or grandparents visiting Canada under the Super Visa program, to provide health coverage during their stay.
? How much super visa insurance coverage is required?
It must cover healthcare, hospitalization, and repatriation costs of at least $100,000 for one year.
? What types of life insurance are available?
Common types include term life (covers a specific period), whole life (covers your entire life), and universal life (combines insurance with savings).
? Can life insurance be used as collateral for a loan?
Yes, life insurance policies with cash value (such as whole life or universal life insurance) can often be used as collateral for loans. This can provide access to funds while maintaining the policy's coverage, but it's important to understand the implications and potential consequences.
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