Frequently Asked Questions!
How Much Life Insurance Coverage Do I Need?
Coverage depends on factors such as income, debts, and dependents. A general rule is 7 to 10 times your annual income, but a personalized assessment is best.
Can I Get Life Insurance if I Have Pre-existing Health Conditions?
Yes, but pre-existing conditions may affect premiums and coverage options.
What Happens if I Miss a Premium Payment?
Most policies offer a grace period (usually 30 days). If unpaid, the policy may lapse, though some insurers offer reinstatement options.
Are Life Insurance Payouts Taxable in Canada?
No, life insurance payouts are typically tax-free for beneficiaries.
What is Mortgage Insurance?
Mortgage insurance pays a specified insured amount to help cover the mortgage upon the policyholder's death, not necessarily the remaining mortgage balance.
How Does Mortgage Insurance Differ from Life Insurance?
Mortgage insurance covers your mortgage, while life insurance provides broader financial protection for various expenses.
Can I Keep My Mortgage Insurance if I Switch Lenders?
Yes, it is not tied to your lender.
Are the Premiums for Mortgage Insurance Tax-Deductible?
Typically no, unless it's part of a business-owned policy with potential tax benefits.
What is Critical Illness Insurance?
It provides a lump-sum payment upon diagnosis of a covered illness, which can be used as needed.
How is Critical Illness Insurance Different from Disability Insurance?
Critical Illness Insurance provides a lump sum upon diagnosis, while Disability Insurance replaces income if you cannot work.
Are Critical Illness Insurance Premiums Tax-Deductible?
For individuals, premiums aren't tax-deductible, but business-owned policies may have tax planning options.
How Much of My Income Does Disability Insurance Replace?
Typically, 60-70% of your income, covering essential expenses.
What Does Travel Insurance Cover?
It covers medical emergencies, cancellations, and lost luggage while traveling.
Does Travel Insurance Cover Pre-existing Conditions?
Some policies may cover pre-existing conditions if criteria are met.
What is International Student Insurance?
It covers medical and emergency costs for students studying abroad.
Is International Student Insurance Mandatory in Canada?
Some institutions require it for enrollment; otherwise, it's highly recommended.
What is Super Visa Insurance?
Required for parents and grandparents visiting Canada, covering medical emergencies during their stay.
Can I Get a Refund if My Super Visa Application is Denied?
Yes, if no claims have been made, many insurers offer refunds.
What is an RRSP, and How Does it Work?
An RRSP is a tax-deferred retirement savings plan with contributions reducing taxable income.
What is an RESP?
An RESP helps save for a child's education, with government matching contributions through the Canada Education Savings Grant (CESG).
What is an FHSA?
An FHSA helps first-time homebuyers save for a down payment, with tax-deductible contributions and tax-free withdrawals for home purchases.
Can I Combine FHSA with Other Programs like the RRSP?
Yes, you can use both FHSA and RRSP for maximizing savings when buying a home.
What Are Segregated Funds?
Investment products offering growth potential with insurance guarantees and estate planning benefits.
Can Segregated Funds Be Used for Estate Planning?
Yes, they allow beneficiary designation to bypass probate.
What is Corporate Business-Owned Life Insurance?
It insures an owner or key employee, with the business paying premiums and receiving a tax-free death benefit.
What Are the Tax Benefits of Corporate Business-Owned Life Insurance?
The death benefit is tax-free, and cash value growth is tax-deferred.
What is Visitor Visa Insurance & is it mandatory?
It covers medical emergencies and hospital costs for visitors to Canada. It's not required but highly recommended due to expensive healthcare in Canada. Coverage includes emergency medical care, hospital stays, and ambulance services. Some policies also cover pre-existing conditions.
