|
FREQUENTLY ASKED QUESTIONS
Do I need both disability insurance and critical
illness insurance?
Yes! These two types of insurance offer very different protection.
- Disability insurance - provides a regular income to help meet
day-to-day living expenses; but may not provide enough to pay
all the additional expenses associated with a critical illness
or condition.
- Critical illness insurance - provides financial resources
to help pay for additional personal, family or personal expenses
which often accompany a critical illness or condition.
My spouse is not currently working. Can I
buy critical illness insurance for my spouse?
Yes! The amount of critical illness insurance that will be available
on your spouse is typically the lesser of:
- $250,000;
- 4 times your annual earned income; and
- The amount of your critical illness insurance. If you do not
have critical illness insurance, your spouse will be considered
for an amount up to $100,000.
Can I buy critical illness insurance to protect
my personal?
Yes! Critical Illness can be purchased to provide:
- Key person insurance;
- personal loan insurance; and
- Buy-sell insurance.
What is the survival period?
You must survive 30 days after a written diagnosis is made or
surgery is performed, which satisfies the definition outlined
in the policy.
If you add the Enhanced Critical Condition Rider, the survival
period is different for the diagnosis of Paralysis only. You must
survive for a period of 90 days, and the Paralysis must be continuous
without any sign of improvement.
During the survival period, you must not have experienced irreversible
cessation of all brain functions.
Can I use critical illness insurance to cover
a mortgage, personal or personal loan?
Yes. A decreasing benefit option is designed just for that purpose.
The one-time, lump sum benefit amount decreases every year until
the end of the coverage period. Coverage is available for periods
of 10, 15, 20 and 25 years.
The benefit is paid directly to the owner of the policy, rather
than the bank, and can be used for any personal or personal need.
Are critical illness insurance premiums and
benefits taxable?
Our understanding of current taxation legislation as it applies
to critical illness insurance is that generally premiums are not
deductible for income tax purposes, regardless of who owns the
policy, and benefits received by the owner for a critical condition
are not taxable to the owner.
As the tax treatment of critical illness insurance and, in particular,
certain benefits available under this form of insurance remains
subject to interpretation, the information provided on this web
site should not be relied upon when making a purchasing decision.
You should discuss the tax implications of a critical illness
insurance policy with your accountant or tax advisor.
Are there any restrictions on how I use the
money?
No! How you spend the money is up to you.
How much does it cost?
A representative will be pleased to discuss your needs and prepare
a personalized illustration for you. Contact Wise Financial Group
Inc. for free consultation.
What is Best Doctors?
Best Doctors, Inc. is the leading doctor referral service in
the U.S.* It can provide you and your treating physician with
a second medical opinion on your diagnosis, recommend treatment
options, identify leading doctors, and co-ordinate treatment in
medical facilities outside Canada.
Founded by a group of doctors affiliated with Harvard Medical
School, Best Doctors surveys medical professionals worldwide to
find physicians recognized by their peers as leaders in their
fields. Best Doctors then consults with these physicians on cases
that relate to their areas of expertise.
*Source: CNN, Headline News, USA 1998
This material is for information purposes only and should
not be construed as legal or tax advice. Every effort has been
made to ensure its accuracy, but errors and omissions are possible.
Individual circumstances may vary and specific legal and tax advice
is recommended.
|
