Learning a Little More About Critical Illness Insurance for Your Family

Now a days getting cancer or having a heart attack doesn’t necessarily mean that you will die.  However if you do not have a "nest egg" it could mean financial hardship for many years to come for you and your family.  Critical Illness (CI) Insurance is one way to protect yourself so you don’t have to sell your house to save your life.  Being relatively new as an insurance product there is a lack of knowledge on how CI works.  In this article we will give you a better understanding on how it works and why you should consider it now or when you decide to purchase a home.

CI insurance is a lump sum benefit that pays out 30 days after diagnosis of a CI such as cancer, heart attack or stroke (there are 22 to 24 conditions that are covered).  Typically the option of an early intervention amount prior to the 30 days in the event your need surgery is also available.  This amount is usually limited to 10% of the prescribed benefit.  Most benefit amounts you can apply for range from $25,000 to $2million.  The different types of CI insurance vary from term (price changes at the end of the term) to permanent (fix price).  If you go with the permanent option you do have the choice of return of premium at expiry which is usually the age of 75.  This means that if you never experience or claim a CI your premiums will be returned to you at the age of 75 (a.k.a forced savings). 

There are available cancer treatments that not covered by our public system.  If you became ill wouldn’t you want every option possible? CI insurance gives you the flexibility to explore those options that would not otherwise be available if you did not have the money.

Some things to think about if you were to become critically ill.  You will most likely have to go on disability if it is provided through work or a private plan.  The disability benefit amount may be just enough to cover your current living expenses and mortgage costs. Additional expenses that may arise such as non-covered medication, private surgery, paying an employee to cover you while off work, gas for those trips to the hospital, etc. If you don’t have a disability plan or additional savings you will have to either liquidate assets or go into debt to pay them.  This may mean selling your house which you worked so hard for.

CI insurance gives you flexibility regarding financing medical decisions so that hard choices become easy ones.  Everyone’s situation is different and making sure you seek out the right professional to explain CI insurance is important. 

For more information on how Critical Illness Insurance or Life Insurance could work best for your family please contact:

Robert Ng-A-Fook B.Sc Econ
Investia and Hyland West Financial Services
Investment Funds Advisor/Independent Insurance Broker
Cell:      604-290-1764
Phone:  604-688-5158

robert.ngafook@telus.net

Generic Mortgage - Not when you have a Mortgage Broker working for you!

When any conversation turns to mortgages, it's usually about rate. Of course, low rates are an important component to paying less interest over the long term, but there's much more to consider than just rate. In fact, if you select your mortgage entirely on the lowest rate, you may actually lose out in the long run. Many people don't realize that a mortgage with a rock-bottom rate may have higher fees and penalties, and more restrictive terms.

Across the country, mortgage brokers are doing an excellent and diligent job in helping homebuyers and owners get the best mortgage for their needs, one that has two components – a great rate and the right mortgage privileges, a combination that could save you thousands over the long term. That's why a mortgage broker will help you consider all of the components of mortgage design, like:

· term

· fixed versus variable rate

· payment flexibility

· pre-payment privileges

· restrictions, fees, penalties

· mortgage portability, assumability

· and more

Mortgage brokers too have a mortgage solution for almost any situation: for entrepreneurs, vacation or investment properties, new Canadians… even mortgages that repair your credit rating. And 30-year amortizations and no downpayment mortgages help make homeownership affordable for more Canadians.

Clients of independent mortgage brokers don't want their mortgage options off the shelf from one financial institution. They appreciate that mortgage brokers have access to more than 50 different lenders, which compete for their business. This choice is becoming more critical for today's homebuyers and owners because they are asking questions; they want to compare rates, have their mortgage designed for their needs, and understand how to make their mortgage work for them. The answers – and the product options – are coming from mortgage brokers.

Ongoing information and advice are also critical to ensuring you reach your financial and homeownership goals, because your needs may change over time. Mortgage brokers receive and review a continuous flow of updates from a wide variety of lenders and other industry professionals, so they’re always aware of what’s happening in the mortgage marketplace. The most important and relevant insights are shared with their clients. Your home is an enormous financial commitment, which means you need a mortgage broker who keeps in touch with you during your mortgage years. You deserve that kind of dedicated attention.
Simply put, mortgage brokers are doing more than just offering you a mortgage off the shelf, they offer advice, choice, specialized products, enhanced information on an ongoing basis and personalized service. All very important considerations if you are a first-time buyer, have questions about your current mortgage or renewal, are worried about the interest on your debt load, or if you’re thinking about a vacation or investment property.

If you don't want an off-the-shelf mortgage, then contact a mortgage broker to get an assessment of what you need. Make sure your next mortgage is designed around you!