FAQ

Term insurance policies cover the insured for a stated term. The most common type of term policies is Term 10 and Term 20 policies. For example, on these plans the premiums are fixed for 10 years or 20 years and they rise substantially as the insured ages. Most Term policies are renewable and convertible, meaning the coverage can be renewed and/or converted to a permanent plan without a medical.

Life insurance can be used for a number of reasons. Below is a sampling of six of these, but there are many more:

• Income Replacement
• Paying off a mortgage or a line of credit
• Final Expenses
• Emergency Fund
• Money used to fund your child’s education
• Estate preservation and creation. (Life insurance is seen by many as an unselfish act because the money is not used for the insured, just their loved ones.)

Yes, life insurance is available to people who are sick. Depending on the type of illness, the insured may still qualify for traditional life insurance plans that require medical tests and health questions. Otherwise, non-medical life insurance plans fall in the two categories mentioned above: Simplified Issue insurance (where there are no medical tests and three to 12 health questions) or Guaranteed Issue coverage (where there are no medical tests and no health questions).

Generally speaking, traditional life insurance offers a more affordable life insurance plan than Simplified or Guaranteed Issue coverage. Most Guaranteed Issue policies also have a two-year waiting period on the death-benefit, so if the insured dies in the first two years, the plan’s payout is limited to a return-of-premium plus interest.

Simplified Issue plan coverage can often start from day one, and the face amounts, along with the premiums, are lower than those of Guaranteed Issue life insurance. Guaranteed issue plans have higher premiums and the death benefit is often limited to a return of premium, plus interest for all non-accidental deaths in the first two years.

So long as the information on the initial application is correct there should be no time limit on collecting the claim. The insurance company will need a death certificate and the beneficiary(s) will need to sign a claimant’s statement.

Who needs disability insurance?

If you are dependent on your income and it would cease or decline if you were to become disabled, you are a good candidate for disability insurance.

When should I purchase disability insurance?

As soon as you can. There are several reasons not to "put it off until later." The most obvious reason is the cost of coverage will increase as you get older. If you are earning an income, you need to protect it now. Also, if you are currently in good health, you should have no difficulty qualifying for a policy. However, if your health declines or if you experience a disability, you may no longer be insurable (if you are still insurable, it will certainly be at a higher premium). How much will coverage cost? You should expect to pay between 1-4 percent of your annual income. These percentages are a rough estimate, based on selection of certain benefits and options. Our representatives will assist you in purchasing the coverage that fits both your needs and your budget

How much benefit should I have?

You should have enough coverage to maintain your current lifestyle until you are able to return to work, factoring in all other sources of income (group disability policy, investments, etc.). Most insurance companies will cover up to 50-60% of your income. All companies have a maximum amount they will cover.

When does my disability coverage begin?

Your coverage will begin after the company approves your coverage and when the insurance company receives your signed documents along with the first premium payment (upon completion of underwriting).

What options should I choose?

Residual disability provision: Under a residual disability provision (either in the policy or available by rider), an insured receives a percentage of his or her disability benefit based on the percentage of income loss the sickness or injury has caused.

Inflation protection: Individual disability income policies generally offer a cost of living rider that will adjust benefits for inflation during a long-term claim.

Future increase option: As long as your increased income qualifies for more coverage under the company's issue limits, the future increase option guarantees your right to purchase additional coverage up to a stated age without evidence of insure ability.

Each company will offer different riders, but most have the following options we typically recommend:

How do I determine the correct Elimination Period?

Individual disability insurance policies contain an elimination or "waiting period" during which no benefits are payable. Generally, you have a choice of waiting periods ranging from 30 days to one year. The longer the waiting period, the lower the cost of the plan. You should determine how long you can be without an income, based on your savings and other sources of income.

What type of medical exam is required?

The type of exam and tests required will vary by the amount of coverage requested and insurance company underwriting guidelines. We will have your insurance carrier's medical or paramedical examiner contact you and set up a convenient appointment for a physical exam. The physical exam can take place in your home or office, and is performed by a medical professional at no cost to you (the insurance company pays for the exam). The exam typically includes blood and urine specimen, blood pressure, height and weight measurements and medical history questionnaire. Test results are available to you from the insurance company upon request

How long does the underwriting process take?

All Insurance companies will have their underwriters review your application before issuing your policy. This process typically takes 3-6 weeks depending upon how fast you schedule your exam and how fast additional requests such as requests for medical records are met.

Critical illness cover is an insurance which pays you a tax-free sum of money if you are diagnosed as having a serious, chronic or terminal illness which is listed on the policy, or require a specific type of operation which is listed on the policy or you suffer from any condition or have an accident that totally and permanently prevents you from working

Why do I need critical illness over?

1 in 5 men suffer a critical illness before their normal retirement age. 1 in 6 women suffer a critical illness before their normal retirement age

Why do you need to consider a new Critical Illness policy if you already have one?

Because older policies were often limited in the illnesses they covered; your own circumstances may have changed; you may now need to increase the sum insured.

What could Critical Illness cover be used for?

Anything you want. Medical expenses, repaying the mortgage, making your home easier to live in, school fees, general living expenses, but to name a few.

Is there a waiting period to receive payment on a Critical Illness claim?

All Critical Illness policies require you to survive a specified number of days following diagnosis in order to have a valid claim. The typical survival period is 28 days but some insurance companies have reduced this to 14 days.

What is mortgage insurance?

This is an insurance policy that guarantees the bank or other financial lender that they will get back the money if you should default on the loan. Although you may have no intention of missing the payments and running the risk of getting a bad credit rating, what happens if you become disabled or you die before the mortgage on your home is paid in full? This insurance is not the same thing as mortgage life insurance and it won’t pay off the loan in the event of your death before the loan is paid in full. It is a policy that protects the lender, because, after all it is the lender’s money that is at risk

Why do you need to consider a new Critical Illness policy if you already have one?

Because older policies were often limited in the illnesses they covered; your own circumstances may have changed; you may now need to increase the sum insured.

What are the benefits of mortgage insurance?

As a homeowner, you can really benefit from having mortgage insurance. It will help you in getting a mortgage on a new home much sooner and often allows you to purchase a home with a low down payment. You have more buying power because there is less risk to the lender in allowing you to borrow a higher amount of money. This allows repeat buyers to have more money to put into investments, make repairs to the home or buy furniture.

There are many benefits to getting mortgage insurance. Most lenders require a 10 % or 20% down payment on the amount of money they wish to borrow. When you are willing to purchase the insurance on the loan, this tells the lender you are willing to make a commitment to paying off the money that you owe. Therefore the lenders may only request a 5% down payment making it much easier for you to save up the money you need to buy a home.

Is there a waiting period to receive payment on a Critical Illness claim?

All Critical Illness policies require you to survive a specified number of days following diagnosis in order to have a valid claim. The typical survival period is 28 days but some insurance companies have reduced this to 14 days.

Some of the types of mortgage insurance you can have include the following:

• Refundable – this means you will get back any unused portion of the premium you paid if you decide to sell the home or cancel the policy
• Nonrefundable – you will not get back any money with this type of policy and because of that the premiums are not as expensive as they are with a refundable policy.

What is mortgage life insurance?

This is insurance that covers the amount of the mortgage if you should happen to die before the mortgage is paid in full. The insurance company that holds the policy will pay off the unpaid balance of the mortgage so that your loved ones won’t have to worry about coming up with the monthly payments when they no longer have your salary to rely on.

What is mortgage term life insurance and what are the benefits?

Mortgage term life insurance is a cheaper alternative than mortgage life insurance. Everyone who has a mortgage knows that they have an important investment that they need to protect. Having life insurance will help if you die of natural causes or through an accident before you have the mortgage paid in full. Even if you are no longer living, your family is still responsible for making the mortgage payments and this can be next to impossible when they no longer have your monthly income to use.

What is PMI and what are the benefits?

Private mortgage insurance is an insurance policy that you take out to assure the lender that he/she will receive the money back if you should default on the loan. This is not the same as having life insurance on the mortgage and you will not receive any financial gain from the insurance if you are disabled or if you die. The insurance will not pay off the loan for you in either of those cases. It is simply for the protection of the lender.

However, there are advantages to having private mortgage insurance for the borrower. When you take out a policy to protect the lender, the bank or financial institution that you deal with will allow you to pay a lesser amount as a down payment. This insurance is required if you borrow more than 80% of the total purchase price of a home. You could get away with having to pay only about 5% of the total. On a home that costs $200,000, you would only have to come up with $10,000. This is a difference of $30,000 under regular circumstances

Types of travel insurance:

Insurance policies provide at least six types of coverage, intended for different types of travelers and trips:

Comprehensive travel medical insurance is for people who don't have any other medical insurance, even at home. Since most people who can afford it have health care coverage in their home country, often through their employer, comprehensive travel medical insurance is mainly of interest to long-term travelers who've left their jobs and lost their insurance coverage at home, or to those living and working outside their country of citizenship or permanent residence

Emergency travel medical insurance is for people who have medical coverage at home, but whose health plan at home doesn't cover them while they are traveling. Emergency travel medical insurance only covers emergency services abroad; once you get home, you're on your own (or presumably, back under your regular home coverage) for any necessary follow-up treatment or continuing care. Most health insurance plans and health maintenance organizations in the USA include their own provisions for emergency care while abroad, at least for trips of less than 30 days. Check with your current insurer or HMO before you waste money on an emergency travel medical plan that duplicates your existing coverage.

Medical evacuation (medevac) insurance covers the cost of an air ambulance, attending physician and nurse, etc. if you are so badly injured, or become so ill, that you can't come home (or get to a suitable medical facility) on a scheduled commercial passenger flight. Medical evacuations can cost tens of thousands of dollars, but are rarely necessary. Even very badly injured travelers usually can come home on regular flights after no more than a couple of weeks of emergency treatment and stabilization abroad. Some of the activities most likely to lead to a need for medical evacuation, such as scuba diving and extreme sports, are often excluded from medevac coverage. Read the fine print.

Trip cancellation and interruption insurance covers the cancellation or refund penalties and the cost of getting home if you have to cancel your trip, or cut it short, for specified reasons. The covered reasons vary (read the fine print), but typically include injury or illness to you, a traveling companion, or a member of your immediate family. War and terrorism may or may not be included, or may be covered only at additional charge.