Appendix 1 Insurance Products Health And Life

Front 1

Temporary Term Life (life insurance)

Back 1

(+) Less Expensive
affordable to all
can match period of need
frees funds for investments

(-) Expires or renews at higher cost
often lapsed or not renewed
no savings element

notes: variations include term 100 and reducing term

Front 2

Permanent/ Whole Life (life insurance)

Back 2

(+) coverage for entire family
accumulating values
non forfeiture values
cash values available
forced savings
flexibility and control
usually has dividends

(-) relatively expensive

note: variations include endowment and paid up policies
dividends reduce cost

Front 3

Universal Life (life insurance )

Back 3

(+) extreme flexibility
control of investments

(-) risks assumed by policy owner
potential for loss

note: policy owner can control and vary the amounts of insurance and types of investment

Front 4

Life Annuities (annuities)

Back 4

(+) income for entire life time
guaranteed return
flexible options
RRSP eligible

(-) loss of control funds

note: can pay during second lifetime
guarantee full return of funds
can match inflation

Front 5

Term Certain Annuities (annuities)

Back 5

(+) matches needs

(-) annuitant may run out of $

note: pays for X years or to select age

Front 6

critical illness (health)

Back 6

(+) pays $ for serious illness

(-) limited to certain diseases

note: distracts from total needs

Front 7

major medical (EHC) (health)

Back 7

(+) reimburses some medical cost

(-) can be expensive, limited

note: supplements provincial coverage

Front 8

DISABILITY INCOME LTD (HEALTH)

Back 8

(+) income when disabled
coverage may be to 65

(-) expensive for some
must quality (health, occupation)

note: definitions are important

Front 9

BUSINESS DISABILITY INSURANCE (HEALTH)

Back 9

(+) Can buy out disabled partners, insure staff, pay loan, etc

(-) strict underwriting

note: Lump sum are available

Front 10

ACCIDENTAL DEATH AND DISMEMBERMENT (HEALTH)

Back 10

(+) pays for specified losses

(-) doesn't pay income

note: pays lump sum for specific losses, eye, foot etc

Front 11

OVERHEAD EXPENSE (HEALTH )

Back 11

(+) pays for specified losses

(-)

note: premiums are deductible

Front 12

DRUG AND DENTAL PLANS (HEALTH)

Back 12

(+) cover expensive personal costs

(-) coverage is expensive

note: not always available

Front 13

LONG TERM CARE (HEALTH)

Back 13

(+) nursing, residential care

(-) expensive

note:

Front 14

TRAVEL HEALTH INSURANCE (HEALTH)

Back 14

(+) out of country coverage

(-) expensive

note: restrictions, definitions are critical

Front 15

SEGREGATED FUNDS (RRSP ELIGIBLE)

Back 15

(+) similar to mutual funds
guaranteed returns, insurance

(-)

note: different disclosure