Employers central to improving Canadians' health
Sun Life survey shows majority of Canadians avoid making healthy choices
TORONTO, Dec. 1 2010 - Eating a balanced diet, being active and getting enough sleep are things we know we should do every day, but are we? According to the Sun Life Canadian Health Index(TM) compiled by Ipsos Reid, eight out of ten Canadians (81 per cent) believe that common diseases are completely or mostly preventable, yet almost two-thirds (63 per cent) have adopted a pattern of unhealthy behaviours.
For Canadian employers, a key finding of the Canadian Health Index indicates that more members of their workforce may be at risk of health issues than they may have thought. According to the Canadian Health Index, 60 per cent of Canadian employees have three or more unhealthy behaviours. These employees are more likely to incur higher group benefit costs due to absenteeism, drug claims and disability.(1) The study also reveals that 60 per cent of Canadians believe their employer has some responsibility when it comes to their health.
"The Canadian Health Index shows the majority of Canadians believe they have the primary responsibility for maintaining their health. But many are not taking the action required to turn unhealthy behaviours into good ones," said Kevin Dougherty, President, Sun Life Financial Canada. "It's clear Canadians understand the connection between maintaining a healthy lifestyle and preventing chronic diseases, now we just need to start taking action. Employers have a great opportunity to be part of the solution."
The study asked respondents about six lifestyle choices related to smoking, exercise, diet, sleep, stress and water intake. Sixty-three per cent of Canadians report three or more unhealthy behaviours relating to these lifestyle choices. From a health perspective, lack of exercise, smoking and poor diet are major risk factors for diseases such as cancer, heart disease and diabetes. Diabetes and its complications alone cost the Canadian healthcare system an estimated $13.2 billion every year in direct and indirect costs, including physician care, medication and long-term disability.(2) Barriers to maintaining a healthy lifestyle included lack of willpower or motivation (61 per cent) followed by lack of time (46 per cent) and money (39 per cent).
"The good news is Canadians recognize their role in maintaining their own health, they just need the nudge or incentive that can help them overcome the barriers of willpower, time and money," said Stuart Monteith, Senior Vice-President, Group Benefits, Sun Life Financial Canada. "Employee workplace wellness programs are a proven way to lower these barriers and help empower employees to take positive action to improve their health."
Employers have a significant opportunity in supporting Canadians' health and wellness
Employees with three or more risk factors are absent 50 per cent more often and use two to three times more in group health costs(3)
For every US$1.00 spent on wellness programs, medical costs fall by about US$3.27 and absenteeism costs fall by about US$2.73(4)
Plan members who quit smoking can save their employer about $3,396 per year(5)
For Canadians wanting to improve their health, Dr. Alan Stewart, Corporate Medical Director for Sun Life Financial, recommends a meeting with their primary care provider to discuss the development of a personal "healthy behaviour" lifestyle strategy. In addition, when available, employees should take advantage of company wellness programs that support healthy habit formation within the workplace.
Measuring Canadians' attitudes, perceptions and behaviours about their health The 2010 Sun Life Canadian Health Index(TM) measures the attitudes, perceptions and behaviours of Canadians relating to their personal health. This first of what will be a series of studies yielded an overall index score of 68.5 on a scale of 0 to 100. A person who scored high on the overall Sun Life Canadian Health Index(TM) also scored high on each of the individual attitudinal, behavioural and perceived health components.
The overall index is a blend of scores in three sub-indices: Perceived Health Index (score = 70.9), Attitudinal Health Index (score = 67) and Behaviour Health Index (score = 67.7).
For more information about the study, visit www.sunlife.ca/CanadianHealthIndex1.
Methodology
These are just some of the findings of an Ipsos Reid/Sun Life Financial poll conducted from October 12 to 26, 2010. For this survey, a sample of 3,989 Canadians from 18 to 80 years of age from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. With a sample of this size, the results are considered accurate to within +/- 2 percentage points, 19 times out of 20, of what they would have been had the entire adult Canadian population been polled. The margin of error will be larger within regions and for other sub-groupings of the survey population. These data were weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2006 Census data. The Sun Life Canadian Health Index(TM) is composed of a series of sub-indices composing attitudinal, behavioural and perceived measures, each benchmarked to 100.
About Sun Life Financial
Sun Life Financial is a leading international financial services organization providing a diverse range of protection and wealth accumulation products and services to individuals and corporate customers. Chartered in 1865, Sun Life Financial and its partners today have operations in key markets worldwide, including Canada, the United States, the United Kingdom, Ireland, Hong Kong, the Philippines, Japan, Indonesia, India, China and Bermuda. As of September 30, 2010, the Sun Life Financial group of companies had total assets under management of CDN$455 billion. For more information please visit www.sunlife.com.
Sun Life Financial Inc. trades on the Toronto (TSX), New York (NYSE) and Philippine (PSE) stock exchanges under the ticker symbol SLF.
(1) National Quality Institute: Investing in Comprehensive Workplace Health Promotion, 2001
(2) The Canadian Institute of Health Research, 2005
(3) National Quality Institute:Investing in Comprehensive Workplace Health Promotion, 2001
(4) "Workplace Wellness Programs Can Generate Savings" Harvard University: Health Affairs. Baicker, Cutler & Song - February 2010
(5) Source: The Conference Board of Canada: "Smoking and the Bottom Line: Updating the Costs of Smoking in the Workplace" - August 2006
Source: http://www.insurance-canada.ca/consinfobusiness/infobytes/2010/Sun-Life-Canadians-avoid-healthy-choices-1011.php
Please come and check out our website about group health care plans and health care spending accounts. If you would also like to set up appointments, call 331-4567 and we can assist you or you can leave a message if no one answers your call.
Thursday, July 14, 2011
Tuesday, July 12, 2011
5 ways to save on your Life insurance
Nearly everyone should have life insurance, because death comes with financial obligations. However, just because you need life insurance doesn’t mean you shouldn’t try to save on your premiums. Here are a few tips for saving when it comes to your life insurance:
1. Choose Term Life Insurance.
Term life insurance is the most affordable, most widely available type of life insurance, but term life insurance policies require that you get a medical exam to assess your health and level of risk before you can be insured. Other types of life insurance are available without a medical exam, but be prepared to pay higher premiums if you’re looking for this type of insurance, as your provider is insuring an unknown risk and will charge for that uncertainty.
2. Get an Exam.
The healthier you are, the lower your life insurance premiums will be, because your insurance company will see you as less of a risk. However, many people choose to purchase guaranteed life insurance policies because they promise no medical exam or questionnaire. Compare the premium differences carefully before you make a decision, but if you’re generally healthy, you may decide that having a medical exam or filling out a questionnaire is worth the significant savings you can expect to receive.
3. Joint Policies & Annual Payments Save You More Money.
You and your spouse will likely both need life insurance – and if you do then you should consider a joint policy, which can often save you up to 15% per year on your premiums. Another quick way to save is by paying for your life insurance annually, as your insurance company charges a fee for the convenience of paying monthly. While the administration or financing fee may not seem like a lot on an annual basis, consider the cost of the fee over the term of the policy before you decide to finance your premiums.
4. Don’t Over-Insure.
If $100,000 of life insurance is good, isn’t $250,000 better? Not necessarily. Your life insurance company bases its premiums on several factors – and one of them is whether you are taking out more insurance than you need. Over-insuring yourself will only result in higher premiums, so assess your family’s needs accurately and insure for what you need.
Factors to consider:
What are your expected funeral costs?
How much debt are you carrying? How much of it is NOT life insured?
Do you need to offset your loss of income and if so, for how long?
Will your family need funds to pay for your child's or children's education?
The general rule of thumb for life insurance coverage is five times your current gross income, but the total amount of life insurance you need can vary depending on the above factors. Since your life and circumstances are constantly changing, review your policy regularly, and adjust it to meet your needs.
5. Don’t Stop Comparing.
Many people become complacent with their life insurance policies and hesitate to compare other options to make sure that they have the most appropriate coverage at the best rate. The fact is that while your insurance company may have offered you the best deal when you first bought your policy, they may not be the most affordable as you age. Whenever you need to change or renew your insurance policy you should compare insurance quotes from several different insurance companies. Check online for competitive insurance quotes and make sure you’re not paying more than you need to.
http://www.insurancehotline.com/5-top-tips-for-saving-on-life-insurance
1. Choose Term Life Insurance.
Term life insurance is the most affordable, most widely available type of life insurance, but term life insurance policies require that you get a medical exam to assess your health and level of risk before you can be insured. Other types of life insurance are available without a medical exam, but be prepared to pay higher premiums if you’re looking for this type of insurance, as your provider is insuring an unknown risk and will charge for that uncertainty.
2. Get an Exam.
The healthier you are, the lower your life insurance premiums will be, because your insurance company will see you as less of a risk. However, many people choose to purchase guaranteed life insurance policies because they promise no medical exam or questionnaire. Compare the premium differences carefully before you make a decision, but if you’re generally healthy, you may decide that having a medical exam or filling out a questionnaire is worth the significant savings you can expect to receive.
3. Joint Policies & Annual Payments Save You More Money.
You and your spouse will likely both need life insurance – and if you do then you should consider a joint policy, which can often save you up to 15% per year on your premiums. Another quick way to save is by paying for your life insurance annually, as your insurance company charges a fee for the convenience of paying monthly. While the administration or financing fee may not seem like a lot on an annual basis, consider the cost of the fee over the term of the policy before you decide to finance your premiums.
4. Don’t Over-Insure.
If $100,000 of life insurance is good, isn’t $250,000 better? Not necessarily. Your life insurance company bases its premiums on several factors – and one of them is whether you are taking out more insurance than you need. Over-insuring yourself will only result in higher premiums, so assess your family’s needs accurately and insure for what you need.
Factors to consider:
What are your expected funeral costs?
How much debt are you carrying? How much of it is NOT life insured?
Do you need to offset your loss of income and if so, for how long?
Will your family need funds to pay for your child's or children's education?
The general rule of thumb for life insurance coverage is five times your current gross income, but the total amount of life insurance you need can vary depending on the above factors. Since your life and circumstances are constantly changing, review your policy regularly, and adjust it to meet your needs.
5. Don’t Stop Comparing.
Many people become complacent with their life insurance policies and hesitate to compare other options to make sure that they have the most appropriate coverage at the best rate. The fact is that while your insurance company may have offered you the best deal when you first bought your policy, they may not be the most affordable as you age. Whenever you need to change or renew your insurance policy you should compare insurance quotes from several different insurance companies. Check online for competitive insurance quotes and make sure you’re not paying more than you need to.
http://www.insurancehotline.com/5-top-tips-for-saving-on-life-insurance
Tuesday, July 5, 2011
Save on Your Home Insurance
8 Ways to Save on Your Home Insurance
For many people, the cost of their home insurance premiums may seem to grow year after year. This equates to an ever tightening strain on many homeowners’ annual budgets, and can be a real difficulty. However, it may actually possible to reduce the cost of your home insurance premiums considerably, if you know how to go about it. These tips will help you try to reduce your rates!
1. Increase your homeowner’s deductibles
Your homeowner’s deductible is the amount in dollars, of risk that you are prepared to accept and pay in the event that you need to make a claim on your policy, BEFORE your home insurance provider will pay out on any claims. If you’re finding that the cost of your monthly premiums is increasing annually and you’re looking to save, raising the dollar value of your deductible is an easy way to reduce the risk to your insurance provider, and therefore reduce your premiums. For example, if your deductible is currently $200, raising it to $500, or even $1,000 can make a really big difference on your premiums – saving you as much as 25% on the cost of your annual or monthly premiums.
Many home insurance providers now offer deductibles that equate to just 1% of your home’s insured value ($2000 deductible on a $200,000 home). While it may seem like quite a large amount to have to pay if you need to make a claim, the reduction on your premiums may be worthwhile for you. The important thing is to make sure you have the deductible cost to pay out should you need to make a claim! Home insurance is a way of sharing the risks (for a small fee) of owning a home that are largely beyond your control with others. Your deductible is an indication of how much of that risk you’re willing to assume.
2. Combine home and auto insurance
Consider buying your home and auto insurance from the same provider if you can find one that offers you the right deal on both. In looking for cheap home insurance quotes you’ll find that many insurance providers are happy to offer you discounts of around 10-15% should you purchase at least two types of insurance coverage from their company. However, you still need to shop around and make sure that the combined cost is lower that what it would be if you bought to separate policies from different companies.
3. Ask for a discount
There are many discounts available to you if you bother to ask for them. For instance, you can claim a discount on your premiums if you have smoke alarms installed, or if you have additional burglary and fire detection systems in your home. Also, things such as fire extinguishers and deadbolts can earn you a discount. Some insurance providers offer discounts to seniors or people over a certain age as well.
4. Don’t purchase what you will never need
It is very foolish to pay for coverage on risks and perils that are never going to affect you, such as earthquake or volcano coverage in an area where this kind of natural disaster could never occur. Alternatively, if you don’t possess any jewelry of note, you may want to exclude this from your policy.
5. Make your home more damage resistant
It’s a good idea to ask your home insurance provider about the measures you can take to protect your home, thus making it cheaper to insure. For example, certain renovations may reduce the risk of your roof being blown away during a gale or heavy storm, and your insurance provider may reward you for that. Also, updating certain things, such as the old heating systems or outdated electrical wiring, which can reduce the risk of fire in your home and increase your safety, can also reduce your insurance premiums.
6. Keep up to date
Every year, just before you come to renew your home insurance policy it is a good idea to dig the old one out and have a good read through it. Check all the details and if you find anything that is out of date, call your provider and tell them about the changes in your circumstances. This could lead to a reduction in your overall premiums costs, and will ultimately ensure that you’re coverage is valid and up to date.
7. Avoid Additional Risks
Some home insurance providers are put off by certain kinds of risk. Owning certain kinds of dangerous pets (certain breeds of dog, domesticated wild animals, poisonous or dangers reptiles, etc) can actually increase your insurance costs. Home improvements such as swimming pools, hot tubs and trampolines can also increase your costs. You need to make sure that you read and understand the small print in the “Conditions” section of your policy in order to make yourself aware of any exclusions and high risk designations which will ultimately raise your insurance premiums.
Ultimately, you may find that you can reduce your home insurance premiums by following a few simple tips and shopping to find cheaper insurance rates. Contact your broker and check online to see what home insurance rates might be available to you that could save you on your premiums.
Come and see Integra Benefits for all your insurance needs.
For many people, the cost of their home insurance premiums may seem to grow year after year. This equates to an ever tightening strain on many homeowners’ annual budgets, and can be a real difficulty. However, it may actually possible to reduce the cost of your home insurance premiums considerably, if you know how to go about it. These tips will help you try to reduce your rates!
1. Increase your homeowner’s deductibles
Your homeowner’s deductible is the amount in dollars, of risk that you are prepared to accept and pay in the event that you need to make a claim on your policy, BEFORE your home insurance provider will pay out on any claims. If you’re finding that the cost of your monthly premiums is increasing annually and you’re looking to save, raising the dollar value of your deductible is an easy way to reduce the risk to your insurance provider, and therefore reduce your premiums. For example, if your deductible is currently $200, raising it to $500, or even $1,000 can make a really big difference on your premiums – saving you as much as 25% on the cost of your annual or monthly premiums.
Many home insurance providers now offer deductibles that equate to just 1% of your home’s insured value ($2000 deductible on a $200,000 home). While it may seem like quite a large amount to have to pay if you need to make a claim, the reduction on your premiums may be worthwhile for you. The important thing is to make sure you have the deductible cost to pay out should you need to make a claim! Home insurance is a way of sharing the risks (for a small fee) of owning a home that are largely beyond your control with others. Your deductible is an indication of how much of that risk you’re willing to assume.
2. Combine home and auto insurance
Consider buying your home and auto insurance from the same provider if you can find one that offers you the right deal on both. In looking for cheap home insurance quotes you’ll find that many insurance providers are happy to offer you discounts of around 10-15% should you purchase at least two types of insurance coverage from their company. However, you still need to shop around and make sure that the combined cost is lower that what it would be if you bought to separate policies from different companies.
3. Ask for a discount
There are many discounts available to you if you bother to ask for them. For instance, you can claim a discount on your premiums if you have smoke alarms installed, or if you have additional burglary and fire detection systems in your home. Also, things such as fire extinguishers and deadbolts can earn you a discount. Some insurance providers offer discounts to seniors or people over a certain age as well.
4. Don’t purchase what you will never need
It is very foolish to pay for coverage on risks and perils that are never going to affect you, such as earthquake or volcano coverage in an area where this kind of natural disaster could never occur. Alternatively, if you don’t possess any jewelry of note, you may want to exclude this from your policy.
5. Make your home more damage resistant
It’s a good idea to ask your home insurance provider about the measures you can take to protect your home, thus making it cheaper to insure. For example, certain renovations may reduce the risk of your roof being blown away during a gale or heavy storm, and your insurance provider may reward you for that. Also, updating certain things, such as the old heating systems or outdated electrical wiring, which can reduce the risk of fire in your home and increase your safety, can also reduce your insurance premiums.
6. Keep up to date
Every year, just before you come to renew your home insurance policy it is a good idea to dig the old one out and have a good read through it. Check all the details and if you find anything that is out of date, call your provider and tell them about the changes in your circumstances. This could lead to a reduction in your overall premiums costs, and will ultimately ensure that you’re coverage is valid and up to date.
7. Avoid Additional Risks
Some home insurance providers are put off by certain kinds of risk. Owning certain kinds of dangerous pets (certain breeds of dog, domesticated wild animals, poisonous or dangers reptiles, etc) can actually increase your insurance costs. Home improvements such as swimming pools, hot tubs and trampolines can also increase your costs. You need to make sure that you read and understand the small print in the “Conditions” section of your policy in order to make yourself aware of any exclusions and high risk designations which will ultimately raise your insurance premiums.
Ultimately, you may find that you can reduce your home insurance premiums by following a few simple tips and shopping to find cheaper insurance rates. Contact your broker and check online to see what home insurance rates might be available to you that could save you on your premiums.
Come and see Integra Benefits for all your insurance needs.
Thursday, June 23, 2011
Group Insurance
Group Insurance – Five Tips to Maximize Employee Benefits
The cost of employee benefit plans has risen dramatically in recent years. That's why it is crucial you work with an independent broker who specializes in employee benefit plans. The right broker can save your company thousands of dollars and create value-added service.
The following five tips will help you to maximize your employee benefit dollars:
■Determine your company's needs. A qualified, independent group specialist can work with you and your employees to identify which benefits offer the best value for your organization. It's important to gather the necessary information through past claims experience, employee surveys and seminars to create the optimal plan.
■Understand the types of coverage. Group insurance contains many components: life insurance, disability insurance, health, dental and vision coverage, and many of these categories have several sub-categories. It is imperative that the employer and employee understand the need and value of the various options. This will help control costs yet maximize the perceived value of the plan to employees.
■Know the insurance company you are buying from. Many group carriers price their products aggressively in an attempt to earn your business, yet when it comes time to renew your coverage they are just as quick to increase your premiums. Other insurance companies prefer to avoid certain types of businesses and price their plans accordingly. Work with your broker to determine which insurance companies are receptive to your type of business and which companies have a hassle-free claims process.
■Work with a trusted independent group specialist who is able to shop the market for you. An independent employee benefits specialist offers you the advantage of comparing the costs and benefits of many group insurance carriers, as opposed to a (captive) sales agent who is generally limited to promoting a single insurance carrier's products. Furthermore, look for an experienced group specialist with proper credentials who comes recommended and is trusted within the business community. Ask for references or testimonials from existing clients.
■Review your plan with your broker regularly. Your employee benefit needs can change with plan usage and with your company's business cycle; your broker can offer recommendations to address these issues. There are many steps you can take to contain your costs, including increasing your deductible to keep in line with inflation, implementing annual maximums on certain components of the plan, and setting a cap on plan dispensing fees.
This article was found on this webpage: http://lsminsurance.ca/tips/group/group-insurance-maximize.
Come check out Integra Benefits webpage for more information on group benefits, where we are sure you can get a great deal on group insurance and health spending accounts. Call (331-4567) or email us at info@integrabenefits.ca to make an appointment today with Shawna. You are also welcome to visit our office at 813 3rd Ave South Lethbridge AB for more information on group benefits.
The cost of employee benefit plans has risen dramatically in recent years. That's why it is crucial you work with an independent broker who specializes in employee benefit plans. The right broker can save your company thousands of dollars and create value-added service.
The following five tips will help you to maximize your employee benefit dollars:
■Determine your company's needs. A qualified, independent group specialist can work with you and your employees to identify which benefits offer the best value for your organization. It's important to gather the necessary information through past claims experience, employee surveys and seminars to create the optimal plan.
■Understand the types of coverage. Group insurance contains many components: life insurance, disability insurance, health, dental and vision coverage, and many of these categories have several sub-categories. It is imperative that the employer and employee understand the need and value of the various options. This will help control costs yet maximize the perceived value of the plan to employees.
■Know the insurance company you are buying from. Many group carriers price their products aggressively in an attempt to earn your business, yet when it comes time to renew your coverage they are just as quick to increase your premiums. Other insurance companies prefer to avoid certain types of businesses and price their plans accordingly. Work with your broker to determine which insurance companies are receptive to your type of business and which companies have a hassle-free claims process.
■Work with a trusted independent group specialist who is able to shop the market for you. An independent employee benefits specialist offers you the advantage of comparing the costs and benefits of many group insurance carriers, as opposed to a (captive) sales agent who is generally limited to promoting a single insurance carrier's products. Furthermore, look for an experienced group specialist with proper credentials who comes recommended and is trusted within the business community. Ask for references or testimonials from existing clients.
■Review your plan with your broker regularly. Your employee benefit needs can change with plan usage and with your company's business cycle; your broker can offer recommendations to address these issues. There are many steps you can take to contain your costs, including increasing your deductible to keep in line with inflation, implementing annual maximums on certain components of the plan, and setting a cap on plan dispensing fees.
This article was found on this webpage: http://lsminsurance.ca/tips/group/group-insurance-maximize.
Come check out Integra Benefits webpage for more information on group benefits, where we are sure you can get a great deal on group insurance and health spending accounts. Call (331-4567) or email us at info@integrabenefits.ca to make an appointment today with Shawna. You are also welcome to visit our office at 813 3rd Ave South Lethbridge AB for more information on group benefits.
Friday, June 17, 2011
Life Insurance vs. Mortgage Insurance
Last Updated: Thursday, September 21, 2006
4:30 PM ET The Canadian Press Back to accessibility links
Supporting Story ContentStory Sharing ToolsShare with Add This Print this story E-mail this story End of Supporting Story ContentBack to accessibility links Beginning of Story ContentCanadians looking to wrap up new home purchases might find that life insurance is a more flexible and less pricey alternative to mortgage insurance obtained through a bank, say personal finance experts.
While most agree it makes sense to cover large debts with insurance, some argue when it comes to mortgages, most consumers treat it as an afterthought and don't realize that buying through a bank can be a "costly mistake."
"It is important that people know that mortgage insurance is just another piece of a comprehensive financial plan," said Mark Halpern, a certified financial planner and founder of insurance website Illnessprotection.com.
"When you are not dealing with a professional, unfortunately you can have surprises and those surprises can come up at the worst time."
Part of the problem, he said, is that most consumers take out mortgage insurance when they close their financing deals with the bank without doing any price shopping ahead of time.
"And the reason is, because they [the banks] ask the questions at the time of the purchase: 'Would you like to have your house paid off if you die? Would like to have your house paid off if you get sick?' " Halpern said. "And who is not going to answer 'yes' to that?"
Possibility for shortchanging
That emotional response, coupled with a lack of knowledge about alternatives, means that some consumers could be shortchanging themselves in the long run.
With mortgage insurance obtained from a bank, coverage decreases with every mortgage payment but the premiums show no corresponding decline, Halpern said.
"The amount of coverage of their mortgage protection decreases as the mortgage is reduced, however, the premiums stay the same," he said.
"That means their costs [per $1,000 of coverage] actually goes up as they bring down their mortgage debt. Whereas the amount of protection, when you own personal life insurance, remains fixed throughout the term."
Additionally, while mortgage insurance pays off the loan's outstanding balance, only the bank gets paid. In contrast, life insurance will relieve that debt, while often leaving something over for loved ones.
"Owning on your own life insurance, you have options," Halpern said, noting the leftover money could be used to pay for items such as a child's education, taxes and other expenses.
'Portable' insurance
It is also "portable," meaning that consumers don't need to requalify for coverage during the term if they buy a new home or switch mortgage providers.
By contrast, those who purchase mortgage insurance through a bank would likely need to requalify with the new financial institution: "Potentially, when they do this, they could be older, they could unhealthy and rates could be higher. Which means they may not even qualify."
Homeowners who are healthy and have a good family history can also receive discounts of up to 25 per cent on life insurance premiums. A renewable and convertible term policy can be converted to a permanent product at any time without a medical exam.
Moreover, life insurance is not subject to provincial sales taxes the way that mortgage insurance is.
"Going apples for apples, life insurance owned personally is less expensive," Halpern said.
"That's why people really need to go to a professional to see how the insurance fits into the overall plan."
Do you think this is still the case 5 years later. This article was written in 2006, so we have come a little way since then.
4:30 PM ET The Canadian Press Back to accessibility links
Supporting Story ContentStory Sharing ToolsShare with Add This Print this story E-mail this story End of Supporting Story ContentBack to accessibility links Beginning of Story ContentCanadians looking to wrap up new home purchases might find that life insurance is a more flexible and less pricey alternative to mortgage insurance obtained through a bank, say personal finance experts.
While most agree it makes sense to cover large debts with insurance, some argue when it comes to mortgages, most consumers treat it as an afterthought and don't realize that buying through a bank can be a "costly mistake."
"It is important that people know that mortgage insurance is just another piece of a comprehensive financial plan," said Mark Halpern, a certified financial planner and founder of insurance website Illnessprotection.com.
"When you are not dealing with a professional, unfortunately you can have surprises and those surprises can come up at the worst time."
Part of the problem, he said, is that most consumers take out mortgage insurance when they close their financing deals with the bank without doing any price shopping ahead of time.
"And the reason is, because they [the banks] ask the questions at the time of the purchase: 'Would you like to have your house paid off if you die? Would like to have your house paid off if you get sick?' " Halpern said. "And who is not going to answer 'yes' to that?"
Possibility for shortchanging
That emotional response, coupled with a lack of knowledge about alternatives, means that some consumers could be shortchanging themselves in the long run.
With mortgage insurance obtained from a bank, coverage decreases with every mortgage payment but the premiums show no corresponding decline, Halpern said.
"The amount of coverage of their mortgage protection decreases as the mortgage is reduced, however, the premiums stay the same," he said.
"That means their costs [per $1,000 of coverage] actually goes up as they bring down their mortgage debt. Whereas the amount of protection, when you own personal life insurance, remains fixed throughout the term."
Additionally, while mortgage insurance pays off the loan's outstanding balance, only the bank gets paid. In contrast, life insurance will relieve that debt, while often leaving something over for loved ones.
"Owning on your own life insurance, you have options," Halpern said, noting the leftover money could be used to pay for items such as a child's education, taxes and other expenses.
'Portable' insurance
It is also "portable," meaning that consumers don't need to requalify for coverage during the term if they buy a new home or switch mortgage providers.
By contrast, those who purchase mortgage insurance through a bank would likely need to requalify with the new financial institution: "Potentially, when they do this, they could be older, they could unhealthy and rates could be higher. Which means they may not even qualify."
Homeowners who are healthy and have a good family history can also receive discounts of up to 25 per cent on life insurance premiums. A renewable and convertible term policy can be converted to a permanent product at any time without a medical exam.
Moreover, life insurance is not subject to provincial sales taxes the way that mortgage insurance is.
"Going apples for apples, life insurance owned personally is less expensive," Halpern said.
"That's why people really need to go to a professional to see how the insurance fits into the overall plan."
Do you think this is still the case 5 years later. This article was written in 2006, so we have come a little way since then.
Tuesday, June 14, 2011
Insurance Questions Answered in One Place
Hi Readers,
I found an awesome website that answers all your questions about all kinds of insurance out there. Just go to http://www.insurance-canada.ca/ to find all the info on insurance. Then for any help with your insurance needs be sure to phone (331-4567) or email us at info@integrabenefits.ca for further information on how we can fit into your insurance plans.
I found an awesome website that answers all your questions about all kinds of insurance out there. Just go to http://www.insurance-canada.ca/ to find all the info on insurance. Then for any help with your insurance needs be sure to phone (331-4567) or email us at info@integrabenefits.ca for further information on how we can fit into your insurance plans.
Friday, June 10, 2011
How Life Insurance fits into Your Retirement
Hi Readers
I found an interesting article about how life insurance fits into your retirement at this website: http://www.articlesbase.com/insurance-articles/how-life-insurance-fits-into-your-retirement-plans-in-alberta-canada-4255636.html. You should really check it out and then check out our website for information on our life insurance policies, http://www.integrabenefits.ca/.
Erin
You can always feel free to give us a call at 403.331.4567 or email us at info@integrabenefits.ca for any further information on any of our products and services.
I found an interesting article about how life insurance fits into your retirement at this website: http://www.articlesbase.com/insurance-articles/how-life-insurance-fits-into-your-retirement-plans-in-alberta-canada-4255636.html. You should really check it out and then check out our website for information on our life insurance policies, http://www.integrabenefits.ca/.
Erin
You can always feel free to give us a call at 403.331.4567 or email us at info@integrabenefits.ca for any further information on any of our products and services.
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