Your Guide to Insurance Products

Protecting your dreams

Insurance solutions to get you ready for anything

Most insurance websites provide products from only one insurance company. InsureSmart gives you instant access to more than 25 quality life insurance providers. While all those companies want your business, not all of them are right for you and the differences can be hard to understand. We don’t work for the insurance companies. We work for you. We help you sort through the options with complete transparency. Here’s some valuable information on the various types of insurance to help get you started in your planning process.

Your Insurance Specialists

Smart Insurance

When it comes to insurance, you want the best coverage at the lowest possible rates. That’s where we come in. With access to a wide variety of products and providers, the InsureSmart team helps you find the ideal policy to suit your specific needs. With decades of experience in the field of life insurance and financial planning, your team of specialists knows what to look for and how to get the right coverage with the lowest premiums. Take a look at the various types of insurance to get started.

Insurance can be a complex and confusing minefield of information overload. InsureSmart helps you understand your options, guides you through the choices you make and then follows up with you regularly to ensure your long-term needs are met.

Richard Vetter, InsureSmart
THE SIMPLEST LIFE INSURANCE

Term Life Insurance

This type of insurance protects you for a specific time period ranging from 10 to 40 years. This set period is known as a “Term.” If you pass away during the specified term, your beneficiaries receive a tax-free benefit. Prices differ between providers but most term plans share the same features. Term life is the lowest cost life insurance plan relative to coverage. You enjoy a fixed cost throughout the length of the term, and your insurance is renewable without a medical exam. Since you’ll be older when the term expires, the renewal will cost more. Benefits are paid, tax-free, to your beneficiaries.

WHOLE LIFE INSURANCE

Permanent Life Insurance

Permanent life insurance, also known as “whole life” insurance, provides your beneficiaries with a tax-free payment after you die. Some plans can build cash value over time, creating a kind of tax-deferred savings account. Permanent insurance costs are usually guaranteed to remain the same throughout the life of your policy. And some permanent insurance plans let you pay for a limited time and then never again, using the cash value to pay future premiums. Because the premiums do not increase throughout your life, they are, of course, higher than those of term life plans.

FLEXIBLE PREMIUMS

Universal Life Insurance

Universal life insurance is a form of life insurance that offers flexible premiums, a level or increasing death benefit, and a tax-deferred investment opportunity to the insured. With this kind of policy, you pay the premium of their life insurance as well as some additional money to build a cash value. This cash value gains interest and may be borrowed from or used to subsidize the cost of the life insurance policy in the future. However, it’s important to note that unlike permanent insurance plans, if you don’t withdraw the savings portion of your universal life insurance policy while you are still alive, the insurance company gets to keep it.

PROTECTING THE FUTURE OF YOUR BUSINESS

Buy/Sell Insurance

When a business has multiple owners or partners, you can use life or disability insurance to fund the buy sell agreement when something happens to one of those partners, rather than using personal funds or business assets. This insurance policy is then used to complete a buyout and provide the families of each partner or co-owner a secure source of funds for the value of their interest.

CREATING TIME FOR TRANSITION

Key Person Insurance

Key person insurance is life insurance that covers the key person or people in a business. These are the people who are crucial to a business—the ones whose absence could sink the company. With this kind of insurance, the company pays the premiums and is the beneficiary of the policy. If something happens to that person, the company receives the insurance payoff. The purpose of key person insurance is to help the company survive the blow of losing the person who makes the business work. These proceeds can cover expenses until the company finds a replacement person, or, if necessary, pay off debts, distribute money to investors, pay severance to employees and close the business down in an orderly manner.

COVERING YOUR LARGEST DEBT

Mortgage Life Insurance

Mortgage life insurance is required by many banks to protect their investment. However, while they can insist that you have life insurance to cover the debt, they cannot require that you get that insurance with them. You have the flexibility to shop for mortgage insurance to get better products and better rates. The type of mortgage life insurance offered by banks has level premiums but as your mortgage principal gets smaller your coverage also declines. For this reason, many people prefer to use a traditional life insurance plan that provides enough coverage to pay the mortgage and look after other needs for the beneficiaries.

LUMP SUM PAYOUT

Critical Illness Insurance

Critical illness insurance is a policy in which the insurance company makes a lump sum cash payment if the policyholder is diagnosed with one of the specific illnesses on a predetermined list. The policy may also be structured to pay out regular income and the payout may also be on the policyholder undergoing a surgical procedure, for example, having a heart bypass operation. There are typically a number of conditions on these policies, such as requiring a minimum number of days after diagnosis before the insurance claim can be made, and requiring evidence of a valid condition through specified test results.

COVERING YOU WHEN YOU CAN’T WORK

Disability Insurance

Disability Insurance, often called disability income insurance or income protection, protects your earned income against the risk that a disability will interfere with your regular income. It encompasses paid sick leave, short-term disability benefits, and long-term disability benefits. This type of insurance can be challenging for those who are self-employed as it covers only a percentage of your taxable income, rather than gross income.

COVERING WHAT YOUR PROVINCIAL PLAN CAN’T

Extended Health Insurance

With ongoing changes to provincial health care plans, it is important to ensure you have protection against unexpected medical expenses. Extended insurance plans are uniquely designed to supplement the province’s government health plan. They offer a range of supplementary health and dental benefits, including prescription drug, dental, vision and hospital coverage not provided by your provincial program. Premiums paid for these plans are considered valid medical tax deductions in Canada.

PEOPLE ARE LIVING LONGER

Long Term Care Insurance

Long-term care insurance helps pay for the costs associated with long-term care that are not covered by provincial medical insurance. Statistically, about 70 percent of individuals over age 65 require at least some type of long-term care services during their lifetime. Long-term care is an issue because people are living longer.

TAKING CARE OF YOUR DEBTS

Collateral Life Insurance

Collateral Life Insurance is a policy appointing a lender as the primary beneficiary of a death benefit to use as collateral for a loan. If the borrower is unable to pay because of an unexpected situation, the lender can cash in the life insurance policy and recover what is owed.

PEACE OF MIND WHEN TRAVELING

Travel Insurance

When traveling, costs for such things as medical care after a fall or accident can be substantial and can easily wipe out your life savings. Travel insurance provides coverage for the things that can happen to you when you are outside the province, as well as covering the cost of returning home afterwards.