Disability Insurance 101

Posted on July 5, 2012 by admin

If you were to become disabled, how long would you continue to receive a paycheck? This is a question that many people believe that they know the answer to; unfortunately, the answer is usually given without fully investigating the type and amount of coverage that they really have. The dilemma is that if you think you’re protected and it turns out that you are not, it could lead to unexpected and unfortunate consequences, should something adverse happen to you. Imagine how devastating it would be to work hard all of your life and then lose everything as a result of an accident or illness. The solution to this problem is finding out what type of coverage you have, and taking steps to address any shortfalls.

Discussing disability insurance Ontario is even less fun than discussing life insurance. But it’s important. Disability insurance is intended to help you meet your income requirements while you are off from work, allowing you to concentrate on what’s really important, recovering from your disability and returning to an active life.

For most of us, our income is our single greatest financial asset, and disability insurance protects the loss of that asset. While there are more dual-income households than ever before, the reality is that both incomes are needed. The loss of even one income can have a significant impact on the ability of a household to cover their monthly expenses.

Some things to consider:

If you already have a policy in place, what is your monthly benefit? Would you be able to live on that amount of income if you had to? One way to determine how you would be affected financially, should you become unable to work, is to try and live on the monthly benefit amount for a period of one month. If you find that you needed to dip into your savings, you’ll have a pretty good idea of how hard it would be to live for an extended period of time on this reduced income.
If you wait until you are actually ill, you may be unmeasurable. Nobody wants to get sick or injured, but if that happens, having protection in place can provide peace of mind. Consider this statistic: A 20-year-old has a 30% chance of becoming disabled by the time he or she reaches retirement age. While our medical system covers a large portion of our expenses, including hospital care, disability still remains one of the leading causes of bankruptcy in Canada (the reality is that even six months without income could wipe out years of hard-earned savings).

Everyone has something that they want to protect. For example, while a married individual with children would want to ensure that their family does not suffer due to a loss of income, a single individual with no dependents would want to protect their credit rating. In the event of an injury, you might incur a loss of income which could significantly impact your ability to pay your bills, and even though your income might change, your obligations likely won’t.

There are varying types of coverage that offer different types and amounts of protection. Talk to an adviser like Brendan Donnelly today, who would be happy to review your current coverage, answer any questions that you may have about disability insurance, and discuss a solution that meets your needs and fits your budget.

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Do You Have Enough Life Insurance at Work?

Posted on July 3, 2012 by admin

Most people have a great misconception about life insurance and how it can truly work for you in the event of an untimely death. When the topic of life insurance is brought up, many people will casually say they have enough life insurance through their employer. Sometimes, this may be true, but that is usually an extremely rare case. Even if a person has the proper amount of life insurance at their job, that often just isn’t good enough.

Why Work Policies Don’t Work

A life insurance policy at a workplace is a benefit that all hiring managers will push to sell the job. But in reality, it is not a solid life insurance strategy to truly cover a family in the time of need. Workplace policies have many limits, which seriously puts any family at risk, if that is the only policy they rely on.

These policies give employees term life insurance, usually between $10,000 and $100,000, which will expire when the employee no longer works for the company. There are some positives to a work policy, such as no medical exams, since everyone who is an employee qualifies for a policy upon permanent employment (usually after 90 days).

However, there are many downfalls, as well. When a person leaves a position or even retires, the policy no longer applies. Also, when they quit or retire, they may not qualify for a replacement insurance policy or the rates will be much higher, mostly due to age or health. Insurance brokers in Ontario sell life insurance policies to employers in bulk, meaning that they are not specific to each individual’s needs.

Also, the amount of life insurance is often based on the income of the worker. Meaning, if they make a salary of $25,000 a year, the death benefit paid to the beneficiary usually ranges between $25,000 and $50,000. While it is helpful, it is unlikely to take care of a family’s debts, such as a mortgage and car payments.
Benefits of Life Insurance

Insurance brokers in Ontario, like Brendan Donnelly, can help show all of the benefits that life insurance can provide to take care of one’s family in a time of need. Whether you’re planning on purchasing whole or term life insurance, it’s highly beneficial to familiarize yourself with insurance quotes in Ontario and create a financial plan for your budget

When a policy is purchased outside of a workplace, you will know the exact term of the policy. If it is a whole life policy, then the buyer will know they have insurance until they die, as long as the premiums are paid on time. With a term policy, the buy will know exactly how long they will have a certain amount of insurance for, and often with term policies, they may have a right to convert some of that term policy into a whole life policy at the end of the term. Also, some policies can gain cash value, allowing you to borrow in times of need.

The Right Amount of Coverage

Without a proper needs analysis, you will never know if you have too much or too little coverage. While too much insurance isn’t a bad thing, overpaying for a policy can put a strain on your budget. If enough insurance isn’t purchased, you could leave your loved ones with unwanted debts and stress. Meeting with an experienced broker, like Brendan Donnelly, who will provide accurate insurance quotes in Ontario, can help answer all of your questions and guide towards the right decision.

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Getting an Online Life Insurance Quote

Posted on June 26, 2012 by admin

Today, there are many options that make it easy to find a variety of insurance quotes in Ontario. You can choose to visit a qualified insurance broker in Ontario, ask for quotes through a banker or financial planner, or call around. But, by far, the easiest way to obtain life insurance quotes is via the Internet. With so many places to find insurance quotes for Ontario online, shopping around for the best rate is both convenient and simple.

Why Free Online Quotes Are Great
When you obtain your life insurance quotes online, you can get a true and accurate idea of available insurance costs in the local area. From the comfort of your home, you can arm yourself with all the information you will need to make an informed decision in purchasing the life insurance for your family and your situation. Online quoting also allows you to decide on your own terms, without feeling pressured by a sales pitch that could cause you to make a hasty decision.

In most cases, you can get the quotes you need online without giving up a lot of your personal data. If you prefer not to share your private information, you won’t have to. However, if you find the online quoting process is too tedious for your taste, and you’d rather speak to a live person, you still have the option of contacting a professional insurance broker in Ontario to assist you.

Be Cautious When Obtaining Quotes Online
Life insurance quotes can vary greatly from company to company or region to region. Because of this, online quotes for Ontario life insurance may not always be completely accurate. If you complete a form for a quote, and are asked very few questions about your general health and lifestyle, be aware that your quote may not reflect the actual premium you’ll have to pay. Health information is an important requirement in the process, and helps determine your rate. If a physical is required, the true premium could vary greatly from the online quote.

The most important factor in your online quote search is to make sure you are doing business with an established, reputable broker or company. Research their background, and look around for reviews. Even if you find negative comments, but you should focus on how the complaints were addressed, instead of the complaints themselves.

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Life Insurance Rates Are Comparable

Posted on June 7, 2012 by admin

Life insurance in Toronto is not more expensive than rates offered in the other Canadian provinces. Policyholders carry larger death benefits, since Toronto has a higher cost of living and higher incomes. The life insurance coverage must be significant to support the family’s lifestyle if the primary wage earner dies prematurely. A one-million dollar policy would provide sufficient funds, and the annual premiums in Ontario are comparable to those in other provinces.

A life insurance broker in Toronto can provide rates for term life insurance from different insurers. The insurance shopper can choose the policy with the best combination of death benefit, term and annual premium. Creative strategies provide sufficient life insurance coverage for each phase of family life. The purchase of one large policy might not be the best approach, since the insurance needs will change over time. Life insurance in Ontario should be purchased very early in life to take advantages of the best rates. Mortality tables reveal lower rates of death, when the insured is less than 40 years old. Probability of loss is the primary factor in the insurance company’s annual premium calculation. Term insurance offers level premiums throughout the term of the policy, which makes budgeting easier.

Low insurance premiums allow the young family to afford life insurance on the wage earners. Limited incomes in the early years cause young families to make difficult financial choices. Term life insurance premiums must be prioritized in the family budget. The cost of ignoring this financial need can be devastating if the wage earner meets an unexpected death. Without life insurance coverage, the family would be faced with loss of the residence and the inability to meet immediate needs.

Insurance brokers in Ontario know that this situation occurs more often than it should. With sufficient information, most people would choose to purchase life insurance. Perceived need must be matched with the actual situation. Too many people ignore the risks that are presented by city life. Everyone is going to pass away at some point. Loss of a loved one can be offset by life insurance coverage. A person can never be replaced, but money provided by life insurance provides for those who remain.

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Insurance for Critical Illness

Posted on June 6, 2012 by admin

Innovative insurance companies have developed products that provide living benefits for those who become afflicted with certain debilitating illnesses. Life insurance in Ontario compensates the survivors in the event that the insured passes away. Critical illness insurance is designed to pay a designated amount to the insured to sustain the family in the face of critical illness. An experienced insurance broker in Toronto can provide valuable information about private critical insurance policies.

Critical illness insurance in Toronto will pay regardless of the insured’s ability to work, which makes it different from disability insurance. Insurance companies will require health examinations prior to underwriting the critical illness policy. People with higher probability of contracting the specified conditions are wise to carry critical illness insurance. Cancer, heart attack, kidney failure, paralysis, permanent disability, stroke, brain tumor, Multiple Sclerosis, Alzheimer’s and Parkinson’s diseases are the most common conditions listed on critical illness policies. An insurer can deny claims made for these diseases in two common instances.

1. The policyholder misrepresented the health status at the time the policy was issued.
2. An illness that is not covered by the critical illness policy is diagnosed.

Other insurance policies will pay for medical bills and disability. Critical illness insurance is essential for those with a family medical history of one or more of these ailments. Disability insurance in Ontario will not pay if the policyholder is able to work. Such a limitation can be financially devastating, if the wage earner is not able to use the disability income during the illness.

Proper insurance in Ontario prevents significant financial hardship in the face of critical illness. Family life must continue regardless of the medical status of the wage earners. Most critical illness insurance in Toronto does not restrict how the funds are used. A young family member in college would not have to fore-go his education, if sufficient funds were available from the critical illness insurance policy. A home mortgage would remain in good standing as funds were used to make payments. Experimental medical treatments might be affordable, if funds from the critical illness policy are used to pay for them.

Some employers offer optional critical illness insurance as part of the group insurance plan. Anyone with a high probability of contracting one of the covered illnesses would be wise to investigate the coverage. No one wants to endure serious illness, but the additional insurance coverage provides peace of mind for those who participate.

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How to Construct an Effective Life Insurance Portfolio

Posted on May 30, 2012 by admin

Every situation is different, but most people need life insurance in Toronto to provide for those who depend on the family wage earners. Financial hardship is avoided when designated beneficiaries are left with sufficient funds to sustain life following the loss of the insured. Those who depend on the wage earner will rest easier knowing that sufficient life insurance exists. Shopping for life insurance in Ontario should be preceded by careful thought and planning.

• Start early – Insurance companies set annual premiums based on actual mortality rates at each age for males and females. Wise insurance shoppers will purchase life insurance early in life. Rates are affordable when the life insurance policy is placed in force before the age of 40.

• Assess needs – Some people guess at the amount of life insurance that is needed to cover the family’s needs. All existing monthly obligations, outstanding debts and future financial needs must be tallied to determine the appropriate death benefit. Phases of family life will be more expensive, so different life insurance terms can be varied to cover ever-changing needs.

• Set goals – Assumptions should be translated into actual financial goals for the family. Children will go to college. Retirement years will come. The life goals must be defined to provide insight for the life insurance portfolio. An experienced life insurance broker in Toronto will ask these questions. Advanced decisions will allow the insured to make good choices between the various insurance products.

• Consider the unknown – Conversations with family members and friends will reveal situations that deserve consideration. Any number of events can cause significant hardship, including: major illnesses, severe accidents or natural disasters. Expenses incurred can create significant debts for the family. Loss of the insured might occur during one of these events, which would allow the family to cover the debts.

• Be creative – Insurance brokers in Ontario know innovative strategies for creating a comprehensive insurance portfolio. Death benefits are just one dimension offered by the insurance policies available in the 21st century. Various types of insurance products will offer tax shelters and living benefits that will address other needs.

Annual financial portfolio reviews will guide the life insurance decisions throughout the course of adult life. Family needs change as the children grow and life events occur. Increased life insurance needs will result in purchases of additional policies. Major life events can call for cancellation of life insurance policies. Care must be exercised because reinstating insurance policies will result in higher annual premiums. As long as insurance premiums are affordable, insurance brokers will encourage the policyholder to retain all life insurance policies until the terms expire.

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Charitable Giving Through Life Insurance

Posted on May 30, 2012 by admin

Canadians are generous people who have a special awareness of those less fortunate. Charitable organizations exist to carry out various missions. Funds needed to meet the needs of people are donated through many different avenues. Donations of life insurance proceeds provide various tax advantages to the donor, while funding major projects for the charity. An insurance broker in Toronto can provide information about the various ways to participate in charitable giving through life insurance.

• Charity named beneficiary – Life insurance in Ontario can name a charitable organization as the beneficiary of the policy. All or part of the death benefit would be paid to the charity upon the insured’s death. This method provides helpful funds without dipping into the estate.

• Retain ownership – Policyholders of life insurance in Toronto can retain ownership of the life insurance policy. Those who are uncertain that their circumstances will change in the future prefer this method. A beneficiary can be changed on any policy, with a revocable beneficiary clause.

• Transfer ownership – Under certain circumstances, the policyholder might prefer to transfer ownership of the life insurance in Toronto to the charitable organization. In that tax year, the policyholder could claim a tax deduction equivalent to the death benefit on the policy.

• Policy dividends donated – Certain types of life insurance in Ontario will pay an annual dividend to the policyholder. These dividends can be donated to a charitable organization to reduce the annual tax obligation.

• Amplified gifts purchased in payments – Many people can afford the annual life insurance premium more than a large charitable gift. Life insurance proceeds will provide a significant gift to a beloved charity upon the death of the insured.

• Confidential – An insurance broker in Toronto can recommend the best approach for ensuring the gift to charity is confidential. Donations cannot be challenged if other heirs are unaware of their existence.

Insurance brokers in Toronto can recommend the best strategy for creating a portfolio that meets life insurance needs. As time passes, the need for life insurance will change. Adjustments to the portfolio will ensure that appropriate coverage is maintained without unnecessary expense.

Charitable organizations depend on the generosity of Canadians to reach out to those in need. People who are unable to afford to make large donations during life can make a significant contribution through life insurance proceeds. Timely financial advice will ensure that the policyholder is able to reach this financial goal.

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Toronto Residents Need Life Insurance

Posted on May 25, 2012 by admin

Few people enjoy discussions about mortality or the financial hardships that can follow premature death. Insurance brokers in Ontario share stories about people who had sufficient life insurance coverage to allow the family to pursue the stated goals. Cities are expensive places to live, and Toronto residents should consider the cost of living in the pursuit of life insurance. A family should not have to fear losing the house and an uncertain future, because the primary wage earner avoided the subject. Life insurance in Toronto can be affordable when purchased early in life. Those who need life insurance the most are hardworking people with families who depend on the steady income.

Young families doubt that life insurance policies are affordable, because the monthly budget is strained already. Insurance brokers in Toronto can find term life insurance policies that will provide sufficient coverage at affordable rates. An experienced broker will ask the proper questions and create an insurance strategy that will prevent financial hardship for the family. Those with young children have dreams that do not have to die, if the unthinkable happens. Life insurance proceeds would be used to sustain family life in the near term and provide for college education later.

Life insurance in Ontario is easier to discuss when the family has specific financial goals. The broker will ask the appropriate questions that might lead to the purchase of multiple life insurance policies with different terms. This approach provides significant coverage, while the children are young. As each policy term expires, the remaining policies have the same affordable rates and offer sufficient death benefits for the family’s life stage. Once the children are grown, the life insurance needs decrease.

Employer life insurance policies are acceptable instruments for supplemental life insurance coverage. These term policies are small and expire, if employment ends. Reliance on this type of coverage is short-sighted. Primary insurance policies should cover the family over significant periods of time.

Retirement years require less life insurance, but some life insurance provides for final medical bills and burial expenses. Every phase of life presents significant expenses that would be offset with a healthy life insurance strategy. Unexpected loss is handled better, when the life insurance coverage is in place. Life insurance is designed to mitigate the risk of loss that can occur at any point. Unlike auto insurance, everyone eventually collects on the life insurance policy.

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A Comprehensive Life Insurance Portfolio

Posted on May 25, 2012 by admin

One-size-fits-all life insurance does not exist, which is why Life insurance companies create products in response to different demands. Anyone seeking insurance in Toronto would benefit from the services of an experienced insurance broker in Toronto by allowing for a review of different types of insurance that serve specific purposes in the life insurance portfolio. Canadians have many different choices that will be necessary at various times of life which are listed below:

Term Life Insurance

As one of the most affordable forms of life insurance, term life insurance provides high death benefits for low annual premiums. Those with many financial obligations will benefit from a policy that has a level premium throughout the policy term. Affordable insurance coverage is essential to those who live by a household budget. A home mortgage, business obligations and young children can be daunting financial burdens in the face of loss. The substantial death benefit would offset the loss of income while sustaining the family lifestyle. Once these obligations are gone, the life insurance needs change.

Permanent Insurance

For those who wish to carry life insurance that does not expire, permanent life insurance builds cash value while the insured pays premiums. Some permanent policies offer the advantage of paying premiums for the first twenty years and then allowing the policy to remain in force for the rest of the insured’s life. Premiums are higher than term insurance, but there are more advantages available through permanent life insurance in Ontario.

Universal Life

Another type of life insurance is universal life, which offers tax-deferred savings options. All payments in excess of the cost of insurance are invested in funds that will build cash value. Universal life is an effective instrument for those who wish to pass more of their life savings on to the next generation.

Key Person Insurance

Businesses realize that certain key employees and principals provide essential knowledge and skills to the company. Life insurance policies on these key individuals will pay the death benefit directly to the company to fund the search for a replacement employee. Businesses rarely survive the loss of key individuals without sufficient life insurance coverage to provide money for the transition.

Buy/Sell – Partnership – Insurance

Business partners can sign a buy/sell agreement that binds each partner to buy out the other partner’s business interest following a stated event. Divorce, long-term disability, retirement, bankruptcy or death, are some of the common events. Life insurance policies can be taken out to fund the buyout if one partner dies.

Living Benefits:

Some Canadians are purchasing insurance policies that will provide insurance in Ontario for certain life events.

• Critical Illness Insurance – Various life events can cause significant financial hardship. Funds from a critical illness policy are paid out when the diagnosis of one of 23 covered illnesses is received. Payout amounts can range from $10,000 to $2,000.000. The average age of people who make a claim against a critical illness policy is 49.

• Long Term Care – Many Canadians will spend some portion of their lives in a long-term care facility or require medical care at home. Long-term care insurance covers the expenses associated with these types of specialized care. An insurance broker in Toronto can explain the benefits of carrying this type of insurance.

• Disability Insurance – Hardworking people depend on the ability to work to provide for family needs. Income protection is another name for disability insurance. Long-term disability is possible, and this type of coverage would replace a large percentage of the income. Each disability policy offers many choices that can be tailored to the needs of the insured.

Creating the Right Combination

Experienced insurance brokers in Toronto will discuss the life insurance options that are available to each client. Lifestyle questions provide insight for the decisions concerning insurance in Toronto. Annual portfolio reviews allow the insurance broker to offer suggestions and ensure that the client has sufficient coverage. Major life events will dictate adjustments to insurance coverage. Some policies will be cancelled while others are added to the portfolio.

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Lifelong Term Life Insurance Strategy

Posted on May 14, 2012 by admin

Understanding the financial needs of the family is more important than grasping in-depth insurance concepts. Instead of carrying one large term policy until the coverage period expires, consider buying multiple policies with terms that end over a long period of time. An insurance broker in Toronto can find the best insurance quotes in Ontario for accomplishing certain objectives.

For example:

• Select three different terms and death benefits:
o Term 20: $500,000
o Term 30: $300,000
o Term 40: $200,000

• An insured can purchase these three policies in his twenties and pay low premiums for one million dollars of life insurance.

• Three separate insurers should be selected to obtain the lowest possible premiums. An insurance broker in Toronto has access to multiple insurance companies that want new customers.

This strategy provides the following advantages to the insured.

• During the child-rearing years, the family’s future is secure if the unthinkable happens. All three policies will pay the death benefit to the beneficiary.

• At the end of 20 years, the largest policy will expire once the children are out of college and on their own.

• After 30 years have passed, the second policy will expire. Working years will be coming to an end, and the lifestyle will be simpler. Loss of the primary wage earner will covered with the third policy.

Advantages of Using an Insurance Broker in Toronto

Insurance seekers might assume that the cost of using the services of an insurance broker are higher than shopping around for the best deal. This assumption is disproven through these measurable benefits.

• Multiple insurance quotes in Ontario are provided to the insurance shopper. Insurance companies work hard to win new customers. Insurance brokers select the best rates from all quotes provided.

• An insurance broker in Toronto works for the policyholder. Excellent service is provided to the person who pays the insurance premiums. Insurance companies are secondary to those who are brokers of insurance in Ontario.

• A policyholder of life insurance in Toronto has an advocate in the insurance broker. The quest to sustain sufficient life insurance coverage is easier when the insurance broker in Toronto conducts annual insurance reviews.

Find an Insurance Broker in Toronto

Referrals from friends and family are the most reliable way to find an insurance broker. Once the names of different brokers are found, a brief phone interview with each one will provide sufficient information for the final selection. All insurance brokers earn their money by selling policies to people. Lifelong friendships have formed between insurance brokers and their customers.

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