Welcome to Insurance 101

(Photo credit:  CBC News Nav Rahi)

In wake of recent Lapu Lapu Festival tragedy, our collective attention often focuses on those who have lost their lives. However, it's equally important to consider the survivors—individuals who face a new reality marked by significant physical or cognitive challenges. For these individuals and their families, the journey doesn't end with survival; it begins anew with a host of financial and emotional considerations.

Surviving a serious injury often entails:

• Extended Recovery Periods: Rehabilitation can span months or even years, during which the individual may be unable to work. 
• Increased Living Expenses: Home modifications, specialized equipment, and ongoing medical care can quickly add up. 
• Emotional and Financial Strain on Families: Loved ones may need to reduce work hours or leave employment altogether to provide necessary care.
   

Beyond immediate recovery, families must consider long-term financial planning, especially when caring for a child with a disability. There are a few resources that could help:

• Registered Disability Savings Plans (RDSPs): These plans allow families to save for the future needs of a person with a disability, with contributions growing tax-free and potential government grants and bonds enhancing savings.    
• Disability Tax Credit (DTC): A non-refundable tax credit that can reduce the amount of income tax owed, providing additional financial relief.
• Henson Trusts: A legal tool that enables families to provide for a loved one with a disability without affecting their eligibility for government benefits.
• Segregated Funds: An alternative to trusts, segregated funds offer a trust-like structure without the high costs associated with legal trusts. These funds provide estate planning benefits, including bypassing probate and ensuring the seamless transfer of assets to beneficiaries. Additionally, segregated funds offer tax advantages, as capital gains within the fund are subject to preferential tax treatment. They also provide a level of principal protection, making them an attractive option for individuals seeking financial security while maintaining flexibility.
   

While financial planning after an injury is crucial, taking preventive measures can significantly reduce risks and provide essential protection in case of an unforeseen accident. Accident insurance, offers financial support for medical expenses, rehabilitation, and lost income due to accidental injuries. By securing coverage in advance, individuals and families can mitigate financial stress and focus on recovery when it matters most.

Navigating the complexities of financial planning after a life-altering injury can be overwhelming. We are here to help you explore the options available and develop a strategy tailored to your unique circumstances.

Let’s work together to ensure that you and your loved ones are protected—not just today, but for the future.  Feel free to reach out for a personalized consultation. Your peace of mind is just a conversation away.

Related links:

Recording of BC Association of Clinical Counsellors on practical support after a tragic loss

Critically injured victims of a family

A story of a survivor of the Lapu Lapu Incident

The victims and those still fighting for their lives 

*The Challenge of Getting Life Insurance with Diabetes

When Daniel was first diagnosed with Type 2 diabetes in his late 40s, he assumed life insurance was off the table. He had heard the stories—higher premiums, automatic declines, and limited options. But times are changing, and for the first time, there’s a solution designed specifically for Canadians living with diabetes.

With 8 million* Canadians affected by diabetes, access to life insurance has been a challenge—until now. In the past, diabetics faced difficulty qualifying due to higher health risks, such as heart disease, kidney failure, or stroke. Even if they were approved, the premiums were often unaffordable. 

A New Way to Support Diabetic Policyholders

But new term insurance options are changing that, giving diabetics a higher chance of approval, with affordable premiums and even a free Diabetes Care Program to help manage their health.

The Diabetes Care Program is a key benefit, offering policyholders resources to track their condition, manage blood sugar levels, and receive guidance on lifestyle improvements. This extra support can make a real difference in long-term health outcomes.

Life Insurance Options for Diabetics**

When Daniel explored his options, he was surprised to find several choices based on his health profile:

• Evolve Term: Full-featured coverage for those willing to pay higher premiums.
• Essential Term: A more affordable option, though non-renewable and non-convertible.
• Achievers Term: Designed for type 2 diabetics with health goals to maintain coverage. Within one year, policyholders can resubmit lab results, and if they meet or improve their health goals, their coverage and premiums remain unchanged.
• 1-Year Bridge Term: Short-term coverage allowing time to resolve medical tests before reapplying.

Why Having Coverage Matters

A sudden illness or accident can change everything in an instant. For diabetics, the risk of complications like heart disease, kidney failure, or stroke is significantly higher. In fact, according to Diabetes Canada, people living with diabetes are three times more likely to be hospitalized for cardiovascular disease. Without life insurance, families may struggle with financial burdens such as medical bills, outstanding debts, and loss of income.

Consider a case where someone unexpectedly passes away without coverage—funeral costs alone in Canada can range from $5,000 to $15,000. Add to that any remaining mortgage, loans, or everyday expenses, and it becomes clear why having a financial safety net is crucial.

Take the Next Step 

For too long, diabetics have been told that life insurance was out of reach. But today, there are more options than ever before. If you or someone you love is living with diabetes and wants to explore affordable coverage, let’s talk. There may be a solution that fits your needs.

Contact us now. 

*Source: Diabetes Canada

** If a Client has a combination of diabetes and other health history or risk factors, there are unfortunately instances where coverage will not be available.

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Related Links:

Type 2 Diabetes Rewires the Brain Like Early Alzheimer's

Popular Infant Medicine Could Trigger Diabetes Later in Life

Ozempic Ingredient Linked to Dangerous Eye Condition that Could Threaten Sight

What to know about Diet Soda and Diabetes

Study Unlocks How Diabetes Distort Memory and Reward Processing

This article is written based on information provided by Sun Life.  It is not an endorsement of the product as each individual's needs are different.  Please contact us for your specific needs.

NOW YOU ARE HEALTHY; NOW YOU ARE NOT

You're at your annual check-up, expecting routine results, when suddenly your doctor shares alarming news about something found in your body. Or picture a beautiful summer day spent with your family, only to be interrupted by an excruciating pain in your chest, leading to an emergency trip to the hospital, and a week's stay because you just had a heart attack.

The reality is, being diagnosed with a life-threatening illness is akin to experiencing an unexpected accident. We often say, "We are all healthy until we are diagnosed." Without warning, your world is turned upside down. The last thing on your mind should be worrying about how to cover the exorbitant costs of medical treatment and long-term care.

THE STATISTICS

Let's delve into the statistics. Every single day, thousands of Canadians grapple with the harsh reality of heart attacks, cancer diagnoses, and strokes. Consider the staggering figures:

1/2: Cancer?  Statistics show that one in two Canadians will deal with it at some point in their life. While the peak age of diagnosis is between 65-74, 

1/3: Strokes? One in three victims are under 65;  Approximately 10-15% of strokes occur in adults age 18-50, leave a significant portion impaired and in need of long-term care. 

1/4: Heart disease? Well, it's more common than you might think, touching the lives of one in four Canadians.  More surprisingly, one in every five heart failure patients find themselves back in the hospital within 30 days   

These are not just statistics – they represent real people facing real challenges.  Unfortunately, less than 10% of Canadians have this coverage.

WHAT ABOUT UNIVERSAL HEALTH CARE?

While hospital care is covered by the government, once discharged, individuals are left to fend for themselves. From treatment expenses to travel costs and hiring in-home care providers, the financial burden can become overwhelming. Did you know that almost all at-home cancer drugs cost over $20,000, with the average treatment course exceeding $65,000? It's an immense strain both emotionally and financially.

HOW DOES CRITICAL ILLNESS INSURANC WORK?

Enter critical illness insurance, a vital financial safety net during life's most trying moments. It provides a tax-free lump sum that can be utilized for anything related to an illness, whether covering treatment costs, home modifications for accessibility, or providing financial support for loved ones. It covers a wide array of conditions, including heart attacks, cancer, strokes, and more, offering comprehensive benefits such as coverage for medical expenses, travel, and in-home care.

WHILE MONEY CAN'T BUY YOU HEALTH

But perhaps the most important aspect of critical illness insurance is the hope it provides. It's a reminder that no matter what life throws your way, there's still hope. Even in the face of adversity, you can take steps to protect yourself and your family financially.

Invest in critical illness insurance today because you never know when you'll need it.  Don't wait until you need it most; it could be too late or come at a higher cost.   Trust us, your future self will thank you for the peace of mind it brings now, as well as the financial relief that it offers in the future.  

BONUS POINT:  While Critical Illness can protect you from the covered condition, a sickness plan will covers you for all conditions!   Ask us how!

Book a time with us , or contact us for your personal quote. Your peace of mind matters to us.

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Related Links:

Financial stress after critical illness

Guide to critical illness insurance by Canadian Life & Health Insurance Assn

Ontario government mandate critical illness leave for workers

Critical illness plan or cancer treatment plan?

*Certain conditions apply.

This is not an endorsement of any particular coverage plans as each individual's needs are different.  Please contact us for your specific situation.

The Income Dilemma

We don't judge; however, choosing Job A based solely on the dollar amount might mean losing out more in the case of sickness or injury.

Picture this: 45% of Canadians think disabilities are rarer than a unicorn sighting. Newsflash – one in seven Canadians is currently navigating life with some form of disability. It's like discovering that your favorite superhero shops at the same grocery store as you!

What Are You Really Choosing?

In the grand game of financial chess, your choice between Job A and Job B is your opening move. If you're eyeing that $80,000/year salary from Job A, it seems like a sweet deal, right? But hold your horses. Let's unravel the plot.

Job B may offer a slightly smaller paycheck at $78,500/year, but here's the twist – if a sickness or injury takes center stage, Job B could be your financial hero, paying you a tax-free $53,000/year while Job A leaves you with a big, fat ZERO. Now, if such offers aren't on your table, how can you protect yourself?

Life's Curveball - The Financial Challenge

Imagine this scenario: You're injured or struck down by an illness, and suddenly, your superhero cape is in the laundry. How do you cover your living expenses, mortgage, and keep the lights on? Nearly half of working Canadians are scratching their heads at that one.

Sure, there's the Canadian Pension Plan (CPP), but it's like waiting for a superhero rescue while your arch-nemesis laughs maniacally. You need to contribute, meet strict requirements, and cross your fingers hoping they'll swoop in when you need them.

Financial Superhero for All

But fear not, for there's a shining beacon of hope on the horizon – Income Replacement Benefits! It's like a financial superhero costume that fits everyone – whether you're saving the world from behind a desk or freelancing in your pajamas.

Did you know that over 500,000 Canadians take the plunge into self-employment each year? If you're one of them, you're now the proud owner of not just a business but also the responsibility to self-fund your disability insurance. Cue more dramatic music.

Income Replacement Benefits - Own Your Financial Destiny

With income replacement benefits, including but not exclusive to disability coverage, you're not just protecting your income; you're creating a forcefield around your finances that can save the day. Medical bills? Covered. Car payments? Check. Keeping your family's lifestyle intact? Absolutely!

And here's the kicker – you own and control the policy. No waiting for a bureaucratic superhero to decide your fate. The rates are guaranteed until you hit the ripe age of 65 (70 in some cases), ensuring that your financial fortress remains unshakable.

For Everyone - Financial Superhero Status Not Required

This strategy isn't just for high-flying CEOs or daredevil stunt performers. It works for all income levels and most occupations. Some plans don't even require income, so everyone in the family, grandparents and children included, could be protected. There are also guaranteed and simplified issued plans for those who may not be at their optimal health.

Intrigued? Excited? Eager to unleash your inner financial superhero? Reach out to us, and let's chat about securing your financial fortress. Because life's curveballs are inevitable, but with various Income Replacement benefit options, you can face them head-on – cape optional!

Insurance Kit Beyond Life Insurance

Insurance Kit is more than just life insurance because we believe that protecting our clients' financial well-being while they are alive is no less important than protecting their families when they kick the bucket. These protections are more affordable than most think. Just  book a time with us and let us find the best plan for you!

Note: This article is based on the information from Edge Benefits and Combined Insurance.  This is not an endorsement of these products for all clients as each individual's needs are different.

Many of us have a soft spot for charities, supporting causes that are close to our hearts, whether they be faith-based organizations or other meaningful initiatives. Some even go to the extent of naming charities in their wills. But did you know there's a groundbreaking and cost-effective approach that can make an even bigger impact? Enter Canada Life My Par Gift™ life insurance.

This unique product offers a tailor-made solution to enhance your charitable giving during your lifetime and provides the charity of your choice with significant benefits after your passing. The best part? It's a one-time premium payment that qualifies for a tax donation receipt, so no future commitments are required.

With Canada Life My Par Gift™, the charity is both the owner and beneficiary of the policy. This means they can take advantage of the policy's potential growth and even access cash flow while you're still alive. When the time comes, the death payout is directed straight to the charity.

But the benefits don't end there. The policy also offers the charity the flexibility to access cash as needed, either after the insured person's passing or by tapping into the policy's growing cash value. This opens up a world of possibilities, from covering unexpected expenses to funding groundbreaking research or other urgent acts of goodwill.

Moreover, the charity can use any potential dividends generated by the policy to further increase its cash value and payout on death. They can either opt for additional insurance coverage or receive the annual dividends as cash, giving them more control over their financial future.

As time goes on, the life insurance policy's cash value continues to grow, providing the charity with guaranteed access to funds that can be utilized during the insured person's lifetime. However, it's essential to keep in mind that any withdrawals or unpaid loans will reduce the size of the charity's eventual payout.

Not only does this approach benefit the charity, but it also offers tax advantages to the donor. The single premium payment qualifies as a charitable donation, making it a win-win for both parties involved.

So, if you're looking for a way to create a lasting legacy and amplify your impact on the causes you hold dear, consider the transformative potential of Canada Life My Par Gift™ life insurance. Your support can make a significant difference and help the charity thrive for years to come.

If you are interested in learning how you can make a greater impact for the community, Contact Insurance Kit today! 

* In the case of a policy loan, if the loan plus interest exceeds the policy’s cash value, the policy will end. 

** Any annual dividend paid in cash to the policyowner will result in a tax slip being issued to the registered charity in any applicable year. 

*** All donation receipts would be issued by the charity, not by Canada Life. The recognized year of the donation made may be determined by a number of factors.

This post is written based on material provided by Canada Life. 

The information contained is as of date of publication, and may be subject to change. This article is intended as general information only, please contact Insurance Kit regarding your specific situation, or consult your tax consultant for your personal taxation eligibility.

So you work hard to provide for your family, you got life insurance to make sure they are provided for if you passed away suddenly, and you also save up for your retirement diligently.  Your company pays for your benefits, including disability insurance, critical illness insurance....so all ducks are in a row, right?  

Not quite.  Especially if you are self-employed without work benefits!

Work benefits, even when they are available, only provide a portion of your income with a waiting period before you can make a claim.  So, what do you do when you are not working and the benefits have not kicked-in yet?  

Also, these benefits usually end when you retire from your working life. Retirement is also when we may start facing health issues due to aging, or when we are more suspectable to serious injuries even due to a minor accident such as a fall.

What about your children or your elderly parents? Is your spouse a stay-home parent?  If they get sick or injured, how do you pay for the extra medical expenses since they are not covered by any disability insurance because they are not income-earners? 

Would you like to be paid for your sick days as a self-employed person? Or be paid even if you don't have an income?

If your answers are yes, there is a solution for you.  For example, your 16 years and older family members could be covered for staying at home due to sickness or injuries diagnosed by a doctor.  NO INCOME IS REQUIRED for $500/month in coverage.  $1000/month in coverage requires annual income of $20K.  Maximum coverage could go up to $3,000 a month with a $60K annual income.

According to the Canadian Institute for Health Information (CIHI),  the average length of a hospital stay after a fall was 14.3 days, compared to 7.5 days for other medical reasons.  With a regular disability plan that has a 30 days waiting period, you will not be able to make a claim. However, Insurance Kit could help you get a plan that covers that gap and then some!

If you prefer staying at home or at the bedside of your children or parents, rather than at your workplace trying to keep up with the bills, please contact us now for a discussion or a quote.  They are very affordable; even if you have pre-existing condition, you could be covered as well. 

Related Links:

1800 Canadians hospitalized every day due to a fall

Statistics on Injuries at work

Statistics on Injuries outside of workplace

The information contained is as of date of publication, and may be subject to change. This article is intended as general information only, please contact Insurance Kit regarding your specific situation.