This is the amount you have to pay out of pocket before the insurance coverage applies. For example, if your policy has a $500 deductible and your hospitalization costs $3,000, you will have to pay $500 upfront, and the insurance company will cover the remaining $2,500. Therefore, the higher the deductible, the lower the insurance premium. So, if you are comparing insurance prices between different companies, make sure to compare them at the same deductible level.
For individuals aged 0-59, there is no need to fill out a health questionnaire, and they will be covered if their health has been stable for 90 days prior to the effective date of the policy.
For individuals aged 60-79 who require coverage for pre-existing conditions such as heart conditions, stroke, or any unstable existing conditions within 180 days of the effective date of the policy, they need to complete a health questionnaire. If coverage for heart conditions and strokes is not required and the existing conditions have been stable for 180 days prior to the effective date of the policy, coverage for those pre-existing conditions will be provided without filling out a health questionnaire.
For individuals aged 80-89, pre-existing conditions will not be covered unless they fill out a health questionnaire, and if accepted by the insurance company, additional premiums may apply.
- No new treatment
- No changes in treatment, frequency, or type of treatment
- No new signs, symptoms, or diagnoses
- No deterioration in the condition based on test results
- No specialist consultation or waiting for surgery or consultation results with other healthcare professionals
Yes. The condition is that the traveler must spend at least 51% of the time in Canada. However, the insurance coverage will be void if the insured person is in their home country or travels outside Canada when the Canadian government has issued a “avoid non-essential travel” advisory.
There are several cases where you can get a refund for the amount you paid, including:
- Within the first 10 days after purchasing insurance (due to a change of mind, change of plans, or any other reason).
- When you have obtained provincial insurance coverage. You can fill out a form to get a refund for the future period that you have already paid for if you have never made any insurance claims. For example, if you purchased insurance for 1 year and after being in Canada for 6 months, you qualify for Ontario OHIP provincial insurance, you can request a refund for approximately 50% of the amount you have paid.
- When you return to your home country early. For instance, if you purchased insurance for a super visa, which requires you to have coverage for 1 year, but you only stayed for 6 months before returning, you can request a refund of 50% of the amount paid.
Many people choose to buy travel insurance in their home country because it is cheaper. However, this is a common mistake. When considering “cheap” prices, many people forget to compare other factors such as the coverage amount, the cases covered, the complexity of the insurance claim process, and the customer support and care system.
When buying travel insurance in the home country, many people mistakenly believe that it is cheaper. However, in reality, the coverage amount in the purchased packages in the home country is often lower to make the insurance premium look “cheap”. However, that coverage amount may not be sufficient to cover all expenses in the event of an accident. Additionally, insurance companies in the home country typically do not directly pay for medical expenses in Canadian healthcare facilities. Instead, the insured person is required to pay upfront and claim reimbursement later. This process carries a lot of risks. On the other hand, if you purchase insurance from a company in Canada, in the event of an emergency, you only need to call the hotline and you will be guided directly. The insurance company typically makes direct payments to major healthcare systems and hospitals in Canada. This not only provides financial convenience but also gives you peace of mind, as you don’t have to worry about going through the reimbursement process later.
There are cases where you are unsure about the duration of insurance coverage you need. For example, a common situation is when international students have graduated and do not yet have employment to qualify for provincial insurance coverage, and they are uncertain about how long they should purchase insurance. So, is there a price difference between purchasing insurance for 1 year or 6 months?
In reality, there is no price difference between purchasing insurance for a short or long duration. The insurance premium depends on your age, so it is calculated based on a daily rate. Therefore, if you are uncertain about the duration of insurance coverage you need, you have two options:
- Purchase insurance for a shorter duration than your estimated need. When you are nearing the end of the insurance period, you can purchase additional coverage. The process of purchasing travel insurance is quick and easy. It only takes a few minutes to contact an insurance advisor and obtain a new insurance policy after making the payment. However, the disadvantage of this option is that over time, you may forget that your insurance has expired.
- Purchase insurance for an equal or longer duration than your estimated need. Although this option may seem illogical, you should know that most insurance companies in Canada have provisions for refunding unused premium amounts when the insured person obtains provincial insurance coverage (if the insured person has never made any insurance claims). Although it may take some time to fill out a refund request form for the unused premium amount, this will help you avoid the risk of forgetting the expiration date of your insurance in the case of Option 1.
Life insurance is essential for various reasons. It can replace lost income, cover outstanding debts like mortgages or loans, fund children’s education, and provide financial stability for your family in the event of your untimely death. It offers peace of mind and ensures your loved ones are protected financially.
There are several types of life insurance, including term life insurance, whole life insurance, universal life insurance, and variable life insurance. Each type has unique features, benefits, and premiums. It’s important to understand the differences and choose the policy that best suits your needs.
Term life insurance provides coverage for a specified period, typically 10, 20, or 30 years. It offers a death benefit if the insured person passes away during the policy term. Term life insurance is often more affordable and straightforward compared to other types of life insurance.
Whole life insurance provides coverage for the entire lifetime of the insured person. It offers a death benefit and accumulates a cash value over time. Whole life insurance policies also allow for policy loans and potential dividends, providing long-term financial protection and savings.
The amount of life insurance coverage you need depends on various factors such as your income, outstanding debts, lifestyle, future financial goals, and the number of dependents you have. It’s advisable to assess your financial situation and consult with a life insurance advisor to determine an appropriate coverage amount.
Yes, many life insurance policies offer customization options. You can tailor your policy by choosing the coverage amount, policy duration, additional riders (such as critical illness or disability riders), and premium payment options. Customizing your policy allows you to address specific financial needs and priorities.
Life insurance premiums are based on several factors, including your age, health condition, lifestyle habits (such as smoking), occupation, coverage amount, policy type, and duration. Generally, younger and healthier individuals with lower-risk factors tend to have lower premiums.
Yes, life insurance policies can often be updated or modified to reflect changes in your circumstances. You can typically increase or decrease coverage, change beneficiaries, add or remove riders, or adjust premium payment options. It’s important to review your policy periodically and make updates as needed.
When a policyholder passes away, beneficiaries need to file a claim with the insurance company. They usually need to submit a death certificate and any other required documents. Once the claim is approved, the insurance company will disburse the death benefit to the designated beneficiaries.
Term life insurance provides coverage for a specific period, while permanent life insurance offers coverage for the entire lifetime of the insured. Term life insurance is typically more affordable and straightforward, whereas permanent life insurance accumulates a cash value over time and provides lifelong coverage.
Yes, you can buy life insurance for someone else, provided you have insurable interest in their life. Insurable interest usually exists between spouses, immediate family members, business partners, or individuals who would suffer a financial loss due to the insured person’s death.
Medical exams may be required depending on the type of life insurance and the coverage amount you’re applying for. Insurers often request medical exams to assess your health condition and determine the risk. However, some policies, like no-medical-exam life insurance, may be available for smaller coverage amounts.
If you miss a premium payment, your life insurance policy may enter a grace period, usually 30 days, during which you can make the payment without coverage lapsing. If you fail to pay within the grace period, the policy may lapse, and you may lose coverage. It’s important to make premium payments on time or explore flexible payment options.
With certain types of permanent life insurance, such as whole life or universal life, you can borrow against the cash value of the policy. Policy loans allow you to access funds for various purposes, such as paying for education or emergencies. However, it’s crucial to understand the terms, interest rates, and potential implications before taking a policy loan.
Individual life insurance is purchased by an individual to cover their own life and offers personalized coverage based on their needs. Group life insurance, on the other hand, is typically provided by employers or organizations to a group of individuals. Group policies often offer lower coverage amounts and may not be portable if you leave the group.
The covered illnesses vary among insurance providers, but common conditions include cancer, heart attack, stroke, organ transplantation, kidney failure, and major surgeries. It’s essential to review the policy to understand the specific illnesses covered.
Health insurance covers medical expenses, such as doctor visits and hospital stays. Critical Illness Insurance, on the other hand, provides a lump-sum payout upon diagnosis of a covered critical illness, which you can use for various purposes, including medical bills, mortgage payments, or other financial needs.
Yes, you can use the lump-sum payout for any purpose, including medical expenses, mortgage or rent payments, utility bills, childcare, or any other financial needs that may arise due to your illness.
It’s a good idea to consider Critical Illness Insurance when you have dependents, a mortgage, or other financial responsibilities that would be challenging to manage if you were to experience a critical illness and couldn’t work.
While some insurance companies offer standalone Critical Illness Insurance policies, it’s also common for it to be offered as a rider or add-on to a life insurance policy. This allows you to customize your coverage according to your needs.
The cost of your premium is influenced by factors such as your age, health history, lifestyle choices (like smoking), coverage amount, and the length of the policy term.
It depends on the policy terms. Some policies allow for multiple claims for different illnesses, while others might only allow a single claim. Review your policy details to understand its limitations.
It’s possible, but pre-existing conditions might be excluded from coverage initially. It’s crucial to discuss your medical history with your insurance provider to understand the terms and any potential exclusions.
Yes, some insurance providers offer Critical Illness Insurance specifically designed for children. This coverage can help ease the financial burden if your child is diagnosed with a covered critical illness. Check with your insurance company for more information.
Most Critical Illness Insurance policies have a waiting period after the policy is purchased. This waiting period, often referred to as the “survival period,” ensures that the policyholder is eligible for a claim only if they survive a specified number of days after the diagnosis.
Premiums for Critical Illness Insurance can be structured in different ways. You can choose a policy with level premiums, where the premium remains constant throughout the policy term, or with age-based premiums, where the premium increases as you get older.
Yes, you can typically cancel your policy, but the process and any associated fees or refunds depend on the terms of your insurance provider. Keep in mind that canceling the policy means you’ll lose the coverage and potential benefits.
Absolutely. Critical Illness Insurance can be especially valuable for self-employed individuals who might not have employee benefits to rely on. It can help cover personal and business expenses if a critical illness prevents you from working.
The need for medical exams varies by provider and policy. Some policies may require medical underwriting, including a medical history review and potentially a medical examination, while others might offer simplified underwriting without medical tests.
Many policies offer the option to increase your coverage amount, often during specific life events (marriage, childbirth, etc.), without needing to go through medical underwriting again. Check with your insurance provider to understand their policy on increasing coverage.
If you outlive the policy term and haven’t experienced a covered critical illness, the policy generally doesn’t provide any benefit. However, some policies may offer a return of premium option, where a portion of the premiums paid is returned to you.
Disability insurance is a financial product designed to provide income replacement in case you become disabled and are unable to work due to illness or injury. It helps you maintain financial stability during periods of disability.
Anyone who relies on their income to cover living expenses should consider disability insurance. It’s particularly important for those without substantial savings or alternative sources of income.
Disability insurance policies pay you a portion of your income if you become disabled and cannot work. The amount and duration of benefits depend on the policy’s terms and conditions.
There are two main types: Short-Term Disability (STD) and Long-Term Disability (LTD) insurance. STD covers disabilities of shorter duration, while LTD provides coverage for extended periods of disability.
Consider factors like your income, expenses, existing coverage, and the waiting period (elimination period) before benefits kick in. You may also want to assess the policy’s definition of disability and its cost.
The elimination period is the waiting period before your disability benefits start. It can range from a few days to several months. A shorter elimination period typically results in higher premiums.
The definition of disability can vary between policies. Some policies define disability as the inability to perform your own occupation, while others define it as the inability to perform any occupation. Understanding this definition is crucial.
It depends on the insurance provider and your specific condition. Some policies may exclude coverage for pre-existing conditions, while others may offer coverage with certain limitations.
Whether disability insurance benefits are taxable depends on how the premiums are paid. If you pay the premiums with after-tax dollars, the benefits are typically tax-free. If your employer pays the premiums, the benefits may be taxable.
To file a claim, you usually need to provide medical evidence of your disability and follow the procedures outlined by your insurance provider. Contact your insurance company for specific claim instructions.
It may be possible to make changes to your policy, but it’s generally easier to adjust coverage before purchasing. Changing a policy post-purchase may involve renegotiating terms or even applying for a new policy.
Some policies offer partial disability benefits if you return to work on a reduced basis or at a lower income due to your disability. The specifics will depend on your policy’s terms.
The cost of disability insurance varies based on factors such as your age, health, occupation, coverage amount, and elimination period. Generally, the younger and healthier you are, the lower the premiums.
No, disability insurance and workers’ compensation are different. Workers’ compensation provides benefits for work-related injuries, while disability insurance covers disabilities resulting from non-work-related factors.
Yes, you can have both types of coverage. Short-term disability insurance provides immediate benefits, while long-term disability insurance kicks in after the short-term coverage ends.