Critical Illness Insurance

Critical illness insurance helps cover the unexpected costs and potential loss of income associated with a serious illness. From the additional costs associated with medicine and treatment, to travel, home care and specific accommodations if needed, treating and recovering from an illness can have a devastating financial impact. Plus, if you’re unable to work during your recovery, the impact is even greater.

With critical illness insurance, if you become sick with one of the covered conditions covered by your policy and survive the waiting period, you receive a cash benefit. You can then use the funds as you wish.

Disability insurance

Disability insurance helps protect your income and business if you become disabled and can’t work. With different products available for full-time, part-time or home-based workers, disability insurance is the perfect solution for professionals, business owners, business executives and other employed Canadians. An individual disability insurance plan can help you meet your income requirements so you can concentrate on recovering and returning to an active life.

Whether you need to secure your main source of income or supplement the coverage you receive from your employer or an association, disability insurance can help by providing a comprehensive and portable plan you can rely on throughout your working years.

For more information on disability insurance, please contact us.

Life Insurance

Your Life Insurance...

do you want to RENT it, LEASE it or OWN it?

Life Insurance coverage can be classified in three different manners - rented coverage, leased coverage or owned coverage.

Rented Life Insurance (Group Insurance through your Work)

Rented insurance is ‘Group’ (employer) insurance. It survives only as long as you continue to work for the employer and the employer chooses to keep the benefit package in place. Coverage continues as long as the rent payments are made, but can terminate by you leaving the employer, the employer leaving you or the employer discontinuing the plan. When you leave, there is no refund of any premiums paid, hence the term rent. In summary, someone else controls your family's insurance coverage. If the insurance was discontinued after you became uninsurable, what then???

Leased Life Insurance (Personally Owned Term Insurance)

Leased Life Insurance is personal term insurance. The insurance has no middleman (employer) controlling it. It will survive as long as payments are made until the policy expiry date to a maximum of age 75 and in some cases to age 100. If you find yourself in a position of not being able to make a premium payment for a period of 30 days, the insurance company will lapse your policy with no refund of premiums. If you want to re-obtain coverage, the insurance company will require you to pass new medical testing. If you are insurable, the new premium rates will be at your current age which will be more costly. With this type of Life Insurance, you have a lease from the start date until the expiry date.

Owned Life Insurance (Permanent Life Insurance that never expires)

Owned Life Insurance is lifetime coverage with equity buildup (cash value). After a series of payments, you ultimately own the plan. This policy survives a lifetime and pays at death. It survives all other policies and is likely the only policy to pay at death since chances are good that you will live beyond retirement - well after the first two types of Life Insurance have expired.

In the business of creating, preserving and insuring clients Net Worth!

Term Insurance

Whether you are looking to protect your family or your business, Term life insurance offers affordable and flexible protection you can customize to meet your temporary and growing needs.

You can choose term life coverage that protects you for 10 or 20 years or until you reach age 65 or age 100.

Family Term from Manulife Financial

The flexible design of Family Term provides you and your family with affordable protection that can be adapted to your family’s changing lifestyle, income and needs.

Family Term gives your loved ones the financial security to:

  • Maintain a comfortable lifestyle
  • Pay off existing debts – like your mortgage
  • Fund long term investment needs like educational savings plans or RSPs

Plus, you can adjust your Family Term insurance as your needs change, using a wide range of options called ‘riders’, such as Children’s Protection Rider (adding coverage for children), Total Disability Waiver (waiving premiums if you become disabled) and more.

For information on Family Term, please contact me.

Business Term from Manulife Financial

The simple structure and flexible features of Business Term allow you to protect the key elements of your business so you can be sure it will carry forward with minimal disruption.

The affordable and easy-to-manage design of Business Term creates financial security for your business with:

  • Key person protection
  • Business collateral and buy-sell funding
  • Estate tax coverage

Your Business Term insurance can be customized using options called ‘riders’, such as Business Value Protector (adding additional coverage as your business grows), Total Disability Waiver (waiving premiums if you become disabled) and more.

For more information on Business Term Insurance, please contact us.

Family Term and Business Term are registered trademarks of and are offered through Manulife Financial (The Manufacturers Life Insurance Company).

Term Insurance

Whether you are looking to protect your family or your business, term life insurance offers affordable and flexible protection you can customize to meet your temporary and growing needs.

You can choose term life coverage that protects you for 10 or 20 years or until you reach age 65 or age 100.

For more information on term insurance, please contact us.

Mortgage Life Insurance

Buy from the bank or buy your own personal insurance?

Why does personal mortgage life insurance do a better job than bank mortgage insurance?

Bank insurance is tied to the loan, which means that, in order to keep the insurance, you must keep that loan with that bank. If you disturb the loan, i.e., change banks, change houses, or refinance within the same bank, you must cancel the mortgage loan and start another. At the same time, your old insurance stops and you start new insurance. Two concerns arise in this scenario. First, the new insurance will have a higher premium because you are older. Second, you must have good health to get it. If you are not healthy, you may be turned down.

Client Case: A client lives in Weyburn, SK and works in Estevan, SK (about 70 km away), and has bank mortgage insurance. While in his mid thirties, he had 2 heart attacks. Today, in his early forties, he wishes to live in Estevan to be closer to work, and to cut down his traveling time. If he moves, he will be in Estevan as he wishes, with no mortgage insurance. Although he will still have a wife and kids to support, his heart attack history makes him uninsurable. His alternative is to stay in Weyburn, keep his bank insurance, and continue traveling. To the client, neither alternative is attractive.

Bank insurance lacks portability, whereas personal insurance is portable and will cover the mortgage in the next location. If the next mortgage is larger, we may not always be able to get the coverage increased, but surely you would want to be covered for most of your mortgage rather than none at all.

Another major problem with bank insurance is the “long term illness syndrome”. Two-thirds of deaths in any age group are from either heart disease or cancer. If you are going to die before the mortgage is over, the likelihood is that one of these two afflictions will be the cause. The implication of this is that most people are not fine today and dead tomorrow, but sick first for an extended time. You are then on sick pay, or no pay, depending on the protection in place. With sick pay, in the best case scenario, a person generally receives about two-thirds of his/her normal pay-check. This one-third cut in pay coincides with additional expenses brought on by the illness. This can create financial difficulty in many households, especially if the mortgage is large. Statistics show that 48% of mortgage foreclosures result from disabilities. On foreclosure, the mortgage and package deal mortgage life insurance end. You lose a substantial piece of your life insurance at precisely the wrong time, just before claim time.

Personal insurance in the same scenario is not lost, but remains in force, possibly with the waiver of premium benefit paying the premiums. Let’s look at some example numbers – a house worth $250,000 with equity of $100,000 and a mortgage and equal insurance of $150,000. If a family is foreclosed, or forced to sell because of a breadwinner’s sickness, the $100,000 equity turns up as a cash asset in a bank account, to which will be added the $150,000 from the life insurance policy (at death). This is $250,000 in cash, enough for the survivors to purchase clear title accommodation, which is the purpose of the plan to begin with. In the end, the survivors may have a different address, but the protection will provide them with clear title to a residence. Bank insurance, by contrast, has a substantial chance of not being in force at death.

Personal insurance has either a level or increasing death benefit and can leave a balance available to surviving family members for other purposes. Bank mortgage insurance covers only the declining balance, even if lump sum payments have been made to reduce the outstanding balance further, and is never more than the balance owed to the bank.

Personal insurance can be kept on as a personal life insurance beyond the life of the mortgage. If you are in less than good health towards the end of the mortgage, it is comforting to know that your life insurance will remain in place, and not terminate with the termination of the mortgage.

Personal insurance for mortgages is recommended for all of the above reasons.

“Spectra Financial is a full service independent financial firm that works for you the client, not any one insurance or investment company.“