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Disability income insurance can cover you in the event of a severe accident or illness but, it really depends on how much disability income insurance you purchase as to whether or not it will be able to meet all of your financial needs. The greatest number of families have no form of disability income insurance.

Short term disability income insurance covers the first few months you are disabled and the benefits of short-term disability income insurance, are many . Short term disability income insurance is a temporary relief though. If your condition prevents you from working for more than the covered period, then you will need to rely on long term disability income insurance.

Disability insurance can be purchased up to a certain percentage of your income and is tax free if you pay for it yourself.

Disability insurance does not mean you have to take the maximum but you would be wise to take sufficient to cover your monthly bills, even if you give up covering some items.

Disability insurance is sometimes hard to think about. Some people believe that if they make a Will that it will bring them faster to their Maker. Ditto for disability; take a policy and get disabled. But of course it doesn’t work that way.

And the worst thing to do is to consider taking a policy and then becoming disabled before getting a policy in force. Disability insurance quotes will give you firm premium figures for various amounts of income and then you can make up your mind what to do. Even if you take a disability insurance policy with the longest waiting period, it will start paying when you , really, really need it.

Disability insurance cost should be considered as a percentage of your income. If you earn $60,000 a year is 2% or 3% of that too high a cost to ensure that your net income will continue? Only you can answer that after you have obtained a written disability insurance quote based on your income.

Ivon T. Hughes, The Hughes Trustco Group Ltd.
Online Insurance Broker - Get a FREE Quote TODAY!
Tel: (514) 842-9001
Email: mailto:info@trustco.ca info@trustco.ca
Web: hughestrustco.com hughestrustco.com

No Comments » Posted by Matt Cubb /

Term Life Insurance is the lowest priced life insurance that is available to consumers. Unlike Whole Life Insurance, Term provides no Cash Value. This means that there are no funds building while you pay your insurance payments (premiums). Term is what is known as “pure” life insurance, with 100% of the premiums paid going toward the payment of your policy.

A Whole Life insurance policy will build a Cash Value because a portion of the premiums paid go toward the policy fund and the other portion go toward the payment of the insurance coverage.

Term life provides you with more Face Value coverage than other types of life insurance, for a “given” dollar premium.

There are five main types of Term Life insurance available, although there are other variables, such as Level Term, Decreasing Term and Increasing Term (The latter is only available as a “Rider”), we’ll just focus on these main five for right now.

#1. Deposit Term Insurance - This is a 10 year renewable policy where you will make a security deposit at the time of purchase. The insurance company will return the entire amount of the deposit, plus interest, as long as the policy is maintained for at least 10 years.

#2. Re-Entry Term Insurance - This is the least expensive type of Term. You can purchase Re-Entry at what are known as “select rates”, which are less expensive than standard rates. Each time the “Term” of the policy is up, you’ll need to submit proof that you’re still in good health in order to receive the select rates, which must be done by completing a physical exam. If you’re not still in good health, then you must continue to pay the amount (premium) on the original Term policy.

#3. Renewable Term Insurance - You may renew this type of policy at the end of the policy term without having to take a physical exam or provide proof that you are still insurable. You would still have regular increases in your premium amount as you grow older, but not because your health may be suffering. One common type of Renewable Term Life is called “Annual Renewable”. The premium on an Annual Renewable Term policy will automatically go up each year. Other types of Renewable Premium Plans include; Five Year, Ten Year and Twenty Year Renewable Term.

#4. Non-Convertible/Non-Renewable - This type of Term insurance will expire at the end of a given time. Example, 10-Year Term. It costs more than Re-Entry Term Insurance, but is less expensive than Renewable Term.

#5. Convertible Term Insurance - This type of Term has what is known as a “conversion” privilege. This means that you may convert this policy to a policy with a higher premium, such as Endowment or Whole Life. You can do this at any time that you wish and your new premium would be based upon your age at the time of the conversion. A reason for doing this would be so you may purchase a more “permanent” plan. Your health would not make difference in the premium costs at the time of the conversion.

An example reason for buying Convertible Term Life Insurance might be a young man or woman that buys a policy in order to take care of their final expenses and debts, just in case of the unexpected happening. When this young person grew older and married, then they may want to convert their Term policy into something with a long term Cash Value, while still maintaining the original Face Value of the policy. The only difference would be an increase in premium payments.

Joe Stewart is a Webmaster and former Life And Health Insurance Agent. He’s made understanding life insurance simple for consumers. You can read detailed explanations about life insurance at his website TheLifeInsuranceGuys.com/ TheLifeInsuranceGuys.com or by clicking on
TheLifeInsuranceGuys.com/ Whole Life Insurance Quote Online

No Comments » Posted by Matt Cubb /